ASIC has granted some relief in relation to the LEI requirements that were scheduled to start 1 April 2019. The formal instrument can be accessed here: ASIC Corporations (Amendment) Instrument 2019/169.
The extension of relief only applies if certain conditions are adhered to by the Reporting Entity, if these conditions are met the relief will apply until 1 October 2019.
The conditions are as follows:
1. The Reporting Entity must use best efforts to obtain the LEI, as soon as reasonably practicable, by one or both of the following:
*Requesting that the relevant counterparties obtain the LEI and provide it to the Reporting Entity; and/ or
*Obtaining the LEI on behalf of the non-reporting counterparties.
2. Once an LEI is
3. The procedures to follow either or both of the options above must be well documented and maintained by the Reporting Entity, as ASIC may request a written statement from the Reporting Entity, within a timeframe deemed reasonable by ASIC, reporting on compliance with the imposed conditions as laid out above.
We suggest our clients:
- Continue dialogue with non-individual clients about obtaining the LEI;
- Start reporting the LEI where it is available; and
- Document procedures and evidence to support compliance with the above conditions.
What do I need to do from 1 October 2019?
You will need to report the LEI (instead of internal platform identifier) as part of your trade information for your all clients which are non-reporting counterparties to a trade and are not individuals (Non-Individual Client). A non-reporting counterparty, as defined in the ASIC Derivative Transaction Rules (Reporting) 2013, is any party to an OTC derivative transaction that is not required to report. In the case of individual clients, reporting requirements will remain unchanged and only a client code assigned by the Reporting Entity needs to be reported.
Trust or Trustee: Which should obtain an LEI?
Find out more about this frequently asked question here.
What is an LEI?
LEIs are required for the purpose of identifying counterparties that are legal entities (including those in trusts) in ASIC transaction reports. LEIs are a unique 20 digit alphanumeric code which offers standard credibility and aids in managing the identity of an eligible entity in any business transaction. According to the Global LEI Foundation (GLEIF) over 1,150,000 LEIs have been issued.
How to obtain an LEI
LEIs are issued by Local Operating Units (LOU) accredited by the GLEIF. A list of all Local Operating Units can be found on the GLEIF website.
If you have any questions about LEI requirements, feel free to contact us.
Sophie has worked with some of Australia’s largest financial services organisations in compliance, legal and operational roles. She has also worked with small businesses to provide tailored solutions with a strong understanding of business practicalities as well as obligations to regulators. This strong understanding allows Sophie to effectively engage with not only large financial organisations but also with small businesses. Sophie has an in depth knowledge of compliance and legal obligations for financial services businesses having vast experience in the financial services sector. Sophie continually works with a range of companies in the financial services industry, including OTC derivatives brokers.