Obligation to use LEIs picks up pace

LEIs are already required when reporting under EMIR but their use is to be mandatory from 2015 under COREREP and FINREP.

The EBA published its recommendations on use of LEIs in regulatory reporting and the FCA has adopted the recommended approach. This means that UK firms must have registered both themselves and group companies for an LEI by the end of the year. They are required for COREREP and FINREP submissions for both the reporting firm and any relevant group entities when submitting on a consolidated basis. LEIs are also to be used to identify counterparties when reporting where an LEI has been issued for the counterparty.

Firms are advised to obtain an LEI from a local operating unit and the FCA expect firms to register their LEIs immediately upon receipt using the FCA survey tool.

They have become regulators’ entity identifier of choice so we can expect to see it as mandatory for a range of reporting obligations not least under MiFID II and Security Finance Transaction Reporting.