On the 3rd of January 2018, the new European legislation, the Markets in Financial Instruments Directive and the Markets in Financial Instruments Regulation (collectively, ‘MiFID II’) will take effect across all European Union (EU) member states, including Cyprus.
Pursuant to the above mentioned EU legislation, all companies must acquire an LEI code if they are trading in financial instruments. The LEI is used as the identifier for the legal entity whenever it undertakes investment activity itself or when a financial institution undertakes investment activity on its behalf in a reportable financial instrument such as equities and bonds. The unique LEI enables regulatory authorities in Cyprus and the rest of the EU to monitor trading activity with specific emphasis on market abuse and market manipulation.
It is the legal entity’s obligation to obtain an LEI and to renew this annually. There are many LEI issuing organizations globally and in Cyprus the responsible authority is the Cyprus Stock Exchange.
The following documents will be required to be submitted to the CSE along with the application:
– Certificate of directors original and recent (up to one month) – in our case it will be the incumbency certificate
– Certificate of incorporation original and recent (up to one month)
– Passport copy of the person who will sign the form – i.e. the director of the company
– If the shareholder is a legal entity, we will require certificate of shareholders as well.
We can assist our clients to get a LEI Code. Please communicate with us today for further guidance.