September 22, 2021

Volume XI, Number 265

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September 20, 2021

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FCA Update on Reporting LEIs of Non-EEA Third Country Issuers Under UK SFTR

On April 6, the UK Financial Conduct Authority (FCA) announced that legal entity identifiers (LEIs) of non-EEA third country issuers will not need to be reported under the UK version of the European Union’s Regulation on reporting and transparency of securities financing transactions (UK SFTR), until at least April 13, 2022.

Under Article 4 of the UK SFTR, reporting counterparties must use LEIs to identify entities when submitting transaction reports under the UK SFTR.

In January 2020, ESMA granted 12 months of forbearance from the entry into force of EU SFTR reporting requirements for the reporting of LEIs of non-EEA third country issuers under the reporting technical standard. Although the industry has made progress to encourage more extensive LEI coverage among non-EEA third country issuers, the FCA acknowledges that there continues to be many non-EEA third country issuers without an LEI.

The FCA stated that the extension of the period during which reports under the UK SFTR without the LEI of a non-EEA third country issuer will be accepted should help to reduce market disruption. The FCA expects reporting counterparties to continue engaging with non-EEA third country issuers to obtain an LEI. It also expects reporting counterparties to report an LEI for non-EEA third country issuers where available.

The FCA webpage.

©2021 Katten Muchin Rosenman LLPNational Law Review, Volume XI, Number 99
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About this Author

Carolyn H. Jackson, International Attorney, Katten Muchin law firm
Partner

Carolyn Jackson is a partner in Katten Muchin Rosenman UK LLP and is a Registered Foreign Lawyer. She provides US financial regulatory legal advice to a broad range of market participants, including commercial banks, investment banks, investment managers, broker-dealers, electronic trading platforms, clearinghouses, trade associations and over-the-counter derivatives service providers.

Carolyn guides clients in the structuring and offering of complex securities, commodities and derivatives transactions and in complying with US securities and commodities laws...

+44 0 20 7776 7625
Nathaniel Lalone, Katten Muchin Law Firm, Financial Institutions Attorney
Senior Associate

Nathaniel Lalone, a partner at Katten Muchin Rosenman UK LLP, has a broad range of experience in the regulation of financial products and financial markets, and frequently provides regulatory and compliance advice to trading venues, clearing houses and buy-side firms active in the over-the-counter (OTC) derivatives, futures and securities markets. He is actively involved in advising clients on the implementation of MiFID 2 and MiFIR in the European Union as well as the international reach of US financial services regulation. He also has significant experience with structuring...

+44 0 20 7776 7629
Neil Robson, private equity fund managers counselor, Katten Law Firm, London
Partner

Neil Robson, a regulatory and compliance partner with Katten Muchin Rosenman LLP, focuses his practice on counseling hedge and private equity fund managers and other investment advisers on operational, regulatory and compliance issues. He regularly addresses Financial Conduct Authority (FCA) and EU authorization and compliance under both the EU Alternative Investment Fund Managers Directive (AIFM Directive) and MiFID, cross-border issues in the financial services sector, market abuse, anti-money laundering and regulatory capital requirements, formations and buyouts of...

44-0-20-7776-7666
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