bank of england

Issuers to provide a Legal Entity Identifier (LEI)

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Summary: The FCA has published a consultation paper requiring Main Market issuers with registered offices in the UK to supply an LEI when they file regulated information. The FCA is encouraging issuers to comply with these provisions from 1 January 2017.

The FCA has published a consultation paper (CP16/39) proposing new rules to Chapter 6 of the Disclosure Guidance and Transparency Rules sourcebook (DTR) requiring issuers to provide an LEI when they file regulated information.

The Transparency Directive regulatory technical standards (RTS) require the FCA, from 1 January 2017, to use LEIs as the unique identifiers for all issuers.  However this raises an issue for the FCA as there is no corresponding obligation in the RTS for an issuer to obtain an LEI.  In addition, the RTS requires the FCA to classify all regulated information (see example below) but the FCA may not know what type of regulated information the issuer is filing unless the issuer provides the classification:

  Classification of regulated information Description
 1     Periodic regulated information                                           -
 1.1 Annual financial and audit reports All information disclosed under article 4 of the Transparency Directive
 2 Ongoing regulated information -
 2.2 Inside information All information disclosed under article 17 of the Market Abuse Regulation
 2.3 Major shareholding notifications All information disclosed under article 12 of the Transparency Directive

 

To resolve this issue, the FCA proposes new rules requiring issuers to supply an LEI when they file regulated information with the FCA according to the specific classifications.

The FCA proposes to enable issuers to provide LEIs and classify regulated information when they file it with the FCA from 1 January 2017 and they are encouraging issuers to comply with these provisions from as early as this date even though the consultation closes on 2 January 2017.

In light of this, issuers subject to DTR 6 ie. those with securities admitted to trading on a regulated market (Main Market not AIM) with their registered office in the United Kingdom, should consider applying for their LEI now.  Further information on the process for applying can be found on the London Stock Exchange website.

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