The Global Legal Entity Identification Foundation has introduced a new requirement whereby all legal entities must register and obtain a unique identification number known as a Legal Entity Identifier (“LEI”). This requirement is designed to improve global entity identification and standardisation by allowing all legal entities to be identified in any jurisdiction.
Legal entities, which includes most types of trust, must obtain an LEI by 3 January 2018 in order to continue trading on the financial markets in the UK. In particular, if trustees who are using capital markets in relation to trust funds do not obtain an LEI for the trust, investment firms will not be able to provide the trust with investment services.
To obtain an LEI, trustees need to register online with the London Stock Exchange and submit an LEI request. There is an initial fee of £115 plus VAT to obtain the LEI and then an annual maintenance cost of £70 plus VAT. The London Stock Exchange aim to deal with each request within 1 – 3 working days. For further details on how to obtain your LEI, please see the guides below:
Quick User Guide - www2.londonstockexchangegroup.com/requesting-LEI-quick-guide
Full LEI User Guide - www2.londonstockexchangegroup.com/LEI-User-Guide
The Private Client team at Clarion have extensive experience in advising and assisting lay and professional trustees. If you have any queries in relation to LEIs, or need any help in your role as trustee, please do not hesitate to contact our private client team.
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