ESMA publishes Q&A 15
SFTR reporting is saddled with a number of hidden mysteries. The lack of regulatory certainty frustrates reporting counterparties, regulators and quality assurance providers alike. Any field, especially a matchable/reconcilable field that has multiple permissible answers will forever be a quandary.
The publication of ESMA’s SFTR Q&A 15 finally answers one of the great mysteries of SFTR reporting!
When reporting the jurisdiction of the issuer of either a loaned security (field 2.53) or a collateral security (field 2.92), the question has remained unanswered until now – which jurisdiction should be used?
Question 15 was published in a new version of the SFTR Q&As by ESMA on 31 March 2023. The question raised is:
“Should the fields 2.53 and 2.92 ‘Jurisdiction of the issuer’ be populated with the country code of the registered office of the issuer or of the country where the head office is located?”
The answer ESMA has given is:
“These fields should be populated with the country of the registered office of the issuer (fields 2.54 and 2.93 ‘LEI of the issuer’), corresponding to the ‘Legal address’ in GLEIF data.”
In practical terms, always use the jurisdiction of the registered office (equivalent to incorporation) of the ultimate parent, or, if not known, the jurisdiction of the subsidiary if the issuer does not feature in the GLEIF database.