New requirements for Corporate Accounts | MiFID II regulation


New EU legislation, MiFID II, that is being implemented across the financial services industry from January 3rd 2018 requires us, and other financial services providers, to verify the identity of all our clients. The Financial Conduct Authority (FCA) requires all corporate accounts to provide a Legal Entity Identifier (LEI) number in order to be active on our Resale Market – to sell, buy or bid for shares.
 
You’ll need to provide your LEI number by December 11th 2017, to enable you to have full access to the platform.
 
You will still be able to invest in New Listings without an LEI but at the point you want to sell your investments you will need to have provided an LEI number to us.
 
You are also required to confirm the following statement before January 3rd 2018 to continue using our Resale Market:

– I have not been convicted of any serious financial crime
– I have not been adjudged bankrupt (unless discharged)
– I am not subject to any sanctions imposed by the FCA

Please note this applies to each director of the corporate entity.

How do I provide Property Partner with this information?
1. Log in to Property Partner
2. Follow the on-screen prompts to verify your LEI number and confirm the above statement

 

 
What is an LEI number?
A LEI is a 20 digit code that will be unique to your company, trust or charity. The creation of the LEI number was an initiative backed by the G20 to improve the transparency of global financial transactions. You can read more about it here.
 
How do I get an LEI number?
If you don’t have a LEI already you can apply for one through a number of LEI issuing organisations. There is usually a cost to register and an ongoing annual charge to retain your LEI. Prices vary so you should consider researching which issuing organisation is appropriate for you. We’ve created an overview chart below, accurate as at 16/11/2017, to provide you with a quick overview of the options regarding LEI issuing organisations. You can also find out more information here.

LEI
(We were unable to find accurate pricing information for some providers. You may wish to contact them directly for additional information. Local taxation may apply)

 
Why do I have to provide an LEI number?
MIFID II aims to improve market transparency and ensures firms like Property Partner can notify our regulator, the Financial Conduct Authority, of investments we manage on behalf of our clients. For this process, MiFID II requires that we know this additional identity information about both our individual and corporate investors. You will still be able to invest in New Listings either through Auto-invest, Advance Pre-order or manually without an LEI but at the point you want to sell your investments you will need to have provided an LEI number to us. You also need to have provided an LEI number if you want to buy or bid for shares on the Resale Market.

 
What if my corporate entity is incorporated outside of the EU?
You will still need to provide the additional identity information, which in this case is the LEI number, as your entity will be trading within the EU.
 

What will Property Partner do with this information?
The MIFID II regulation requires us to share your investment activity and LEI number along with your other corporate identifiers with the Financial Conduct Authority.
 
What happens if I do not provide an LEI number?
After December 11th 2017 there are certain restrictions we will put on corporate accounts until an LEI number has been provided. These are as follows:

• You will not be able to place new sell orders
• You will not be able to place new bid orders
• You will not be able to buy new shares on the Resale Market

These restrictions will be lifted as soon as an LEI number has been provided.

After January 3rd 2018, when the new regulation comes into effect, any corporate accounts that have not provided an LEI number will be affected in the following ways:

• Any open Bids will be cancelled
• Any open Investments for Sale (Sell Orders) will be cancelled
 
What if I’m asked for my nationality not an LEI number?
If you are incorrectly asked for a nationality please contact us.
 
We strongly recommend that you provide your LEI number before January 3rd 2018 if you want access to the Resale market and don’t want any Bids or Sell Orders to be cancelled.

 


I still have questions
If you are still unsure about why you need to provide your nationality, how to do so or how the new regulation is going to affect you then please do get in touch. Our Helpdesk is available 9am – 5:30pm, Monday to Friday, and can be contacted on +44(0)20 3696 5600. Alternatively, you can email us at hello@propertypartner.co or go on Live Chat via the website.