Information about LEI (securities transactions)
From 3 January 2018, the new Markets in Financial Instruments Directive (MiFID II)* and within the directive, the directly applicable regulation* will enter into force throughout the Europe. In connection with the new requirements, the legal persons engaged in securities transactions must have a legal entity identifier (LEI) before making the transactions with certain securities. The LEI is an internationally used identification code for companies.
There is no need for a LEI in case the client concludes securities transactions only with instruments, which are not listed on the trading venues, such as fund units, shares in private limited companies, not listed shares, or if the ownership of the securities does not change as a result of the transaction.
LEI code is needed for making transactions (purchase and sale, on and off trading venue) with instruments traded on trading venue (shares, bonds, ETF-s and derivatives).
To carry out transactions with the above securities, a client who is a legal person must apply for the LEI and notify SEB thereof the latest by 2 January 2018 via SEB’s Internet Bank. The latest in December, LEI can be entered in Internet Bank under the securities accounts. When giving orders at a branch office, a client who is a legal customer must present its LEI upon submitting the order.
SEB will not be able to accept the securities orders (including sale transactions for securities) of legal customers without the LEI starting from 3 January 2018.
LEI can be applied for over the internet. A full list of organisations issuing LEI-s is available at www.gleif.org. Costs related to obtaining and maintaining the LEI will be borne by the customer. We recommend doing it in good time, as satisfying the application may take time.
Further information on the LEI can be found on the homepage of SEB at www.seb.ee/eng/investor-protection and on the homepage of the Financial Supervision Authority at https://www.fi.ee/public/LEI_koodi_kasutamisest_KKK.pdf (in Estonian).
* Directive: MiFID 2014/65/EU. Regulation: EU No. 600/2014 MIFIR.