Skip Ribbon Commands
Skip to main content
Navigate Up

No LEI No Trade

MiFID II/MiFIR requires LEIs to be supplied for each of the parties involved in investment. Examples include executing entity, submitting entity, buyer, seller, transmitting firm for the buyer and transmitting form (sic) for the seller.

According to Article 13(2) of Commission Delegated Regulation (EU) No 2017/590 of 28 July 2016, which has a direct effect in the Polish legal system, “An investment firm shall not provide a service triggering the obligation to submit a transaction report for a transaction entered into on behalf of a client who is eligible for the legal entity identifier code, prior to obtaining the legal entity identifier code from that client.”

This requirement prevents an investment firm from concluding transactions on behalf of legal entities and for the account of legal entities which hold no LEI. This is confirmed by recital 14 of the Regulation: “Investment firms should obtain LEIs from their clients before providing services which would trigger reporting obligations in respect of transactions carried out on behalf of those clients and use those LEIs in their transaction reports.”

An additional obligation of an investment firm is to ensure continuous maintenance of a valid LEI. The obligation follows directly from recital 6 of the Regulation: “In order to ensure certain and efficient identification of investment firms responsible for execution of transactions, those firms should ensure that they are identified in the transaction report submitted pursuant to their transaction reporting obligation using validated, issued and duly renewed legal entity identifiers (LEIs).”

 Get the LEI code with KDPW
Last modified:27-06-2017 Go up