In another step towards standardised global regulation, the ASIC (The Australian Securities and Investments Commission) extended its April deadline to September 30th 2019.
The deadline is aimed at financial service entities registered in Australia, pre-dominantly SMSF (Self Managed Superannuation Funds) traders and trustees, but can include other entities within the financial services realm.
Initially, the deadline was set for April 1st 2019, but this was later extended by ASIC. It has been stated that it is highly unlikely that the upcoming deadline set for October 1st will be extended again.
This is a right step in the direction of having one global standardised identifier. This will facilitate cross-border investing and trading and increased transparency across international markets.
The LEI has been a preferred identifier of ASIC since 2013 when they first introduced the ASIC Derivative Transaction (Reporting) Rules. In the rules it is mandated that counterparties to OTC derivatives are recognised by way of an LEI identifier.
Now, Australia follows in the footsteps of many other countries adopting a similar hard line and broader approach to the use of the LEI as its benefits become more apparent as the concept matures.
In the future, all businesses who trade internationally will move towards the LEI as it provides a centralised, reliable source of data improving not just security, but also speeding up current techniques of KYC and client onboarding.
What is an LEI?
An LEI is 20 digit alpha numerical code unique to each company that is registered on the global LEI database. The LEI listing will contain basic company information such as the registered address, and affiliations with other businesses such as parent companies or subsidiaries or branches.
How do I get an LEI quickly?
It is easy to apply for an LEI code if you have not already got one. Simply head to our registration page and fill in the LEI registration form. Contact firstname.lastname@example.org for any questions.
How much does an LEI Code cost?
There are a number of different pricing options. A new LEI for one year is €89, but if you subscribe to automatic renewals it is just €75 per annum.
What happens if I miss the ASIC October 1st deadline?
As soon as you receive your LEI you should contact your Trade Repository to inform them. Corporate clients who have not provided an LEI to their brokers before 1st October may no longer be able to trade with them.
Click here to Register an LEI
The views expressed in this blog belong to LEI Worldwide.