LEI deadline postponed by ASIC
ASIC has made provision for some relief regarding the requirements for LEI that were scheduled to commence on April 1st, 2019. The formal instrument is available here: ASIC Corporations (Amendment) Instrument 2019/169.
Only when some specific conditions are met by the Reporting Entity can relief extension apply. The relief is valid until October 1st 2019 if these conditions are strictly adhered to.
It is important for the Reporting Entity to get the LEI as soon as it can by either getting the LEI on the non-reporting counterparties’ behalf or by asking the right counterparties to get the LEI and present it to the Reporting Entity.
It is important that the Reporting Entity report the LEI of the other counterparty to the relevant Trade Repository for possible open derivative transactions immediately the LEI is published and available on a public website.
The steps on how to follow any of the options above must be recorded and enforced by the Reporting Entity. This is because ASIC may ask the Reporting Entity to provide a written statement within a time period ASIC chooses, making sure that the conditions imposed above are complied with.
What is an LEI?
LEIs are needed in order to easily identify legal counterparties (as well as those in trusts) in the transaction reports of ASIC. They are a unique alphanumeric code that have 20 digits, and they are used to ensure credibility. In any business transaction, they help to manage the identity of an eligible entity. Based on the statistics from the Global LEI Foundation (GLEIF), more than 1,150,000 LEIs have been issued.
How to get an LEI?
LEIs are issued by the Local Operating Units (LOU) accredited by the GLEIF or by the LEI Registration Agents. LEI Register is an LEI Registration Agent who offers fast, low-cost and convenient LEI registration service. Feel free to browse LEI prices and register your LEI for OTC reporting!