Introduction of Legal Entity Identifiers (LEIs)

With effect from 3 January 2018 all small Self Administered Schemes (SSAS’s) wishing to trade in equities and bonds will need to obtain an Individual Legal Entity Identifier (LEI) before trades can be placed.

The LEI is a unique 20 digit code issued by The London Stock Exchange (LSE). These codes will form a Global directory which will greatly enhance transparency in the global marketplace.

This rule has been introduced under the Markets in Financial Instruments Directive (MiFID ii) with the intention of creating a universal reference data system that identifies every legal entity and ultimately prevents financial fraud. Once a SSAS has an LEI, it will be required to quote it to the investment manager when it enters into a financial transaction. Every financial transaction will require sight of the LEI in order for it to be processed.

To obtain an LEI the pension scheme will need to apply through the London Stock Exchange (LSE). Hartley Pensions can apply for an LEI on behalf of any SSAS that requires one.

There is an initial and ongoing fees that are charged by LSE for your LEI.  Hartley will complete the initial registration fee and ongoing administration of the LEI registration for £115 pa plus VAT.

Where funds are available the LSE fee can be expected to be deducted from the scheme funds.

More information about LEIs can be found on the LSE website

By Michael Baber | March 26, 2018 | 0 Comments

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