Maintain the status quo
ESMA has finally published a statement to clarify how SFTR reporting firms should treat the end of the initial deadline for populating issuer LEIs for third country issuers. They have extended the deadline and require all issuer LEIs to be reported where they exist but will continue to permit reports without issuer LEIs for third country issuers until 10 October 2022. They advise market participants that this is the latest date by which firms will be permitted to report without issuer LEIs, while also committing to updating their position on issuer LEIs in advance of 10 October 2022:
“Considering the still unsatisfactory level of LEI coverage on a global scale…ESMA expects competent authorities to continue not prioritising their supervisory actions in relation to reporting of LEIs of third-country issuers.”
This announcement indicates another slight divergence from the UK FCA, where the exemption has been extended until 13 April 2022 at the earliest. Again in practical terms, the UK and EU are now fully aligned; an issuer LEI is required where available in third countries but can be reported without where it does not yet exist.
Kaizen is always on hand to assist firms in ensuring compliance with this complex and evolving regulation. Please get in touch to discuss any SFTR reporting challenges or to find out more about how our multi-award winning ReportShield™ quality assurance testing can get your reporting accurate and complete.
- To read ESMA’s statement please visit their website.