Rowanmoor offering free SSAS Legal Entity Identifier required under MiFID II
25 October 2017
Pensions provider Rowanmoor is offering a free Legal Entity Identifier (LEI) registration service for clients with a SSAS and Family Pension Trust.
The service is designed for SSAS and Family Pension Trust trustees, with one or more stockbroking accounts or investment portfolios in their schemes, the company said.
As part of the MiFID II, which comes into effect 3 January 2018, all independently registered pension schemes will be required to obtain an LEI before trades can take place. The LEI is a 20-digit code that identifies the legal entities participating in a financial transaction and was introduced as part of the drive to increase transparency and reduce fraud in the global financial markets.
Robert Graves, head of pensions technical services at Embark Group, Rowanmoor’s parent company, said the decision to provide the service for free was part of its principle of “lessening the burdens of legislation”.
He said: “Meeting the LEI requirement is to become an annual administrative requirement and as schemes will have to absorb the cost of registration and renewal, we did not want to add to this further by charging additional fees.”
Graves added: “Warnings relating to the impact of MiFID II on SSASs have been widely reported and Rowanmoor is dealing with enquiries from clients and advisers concerned about the financial impact on their schemes and asking what they need to do to comply.
“It is the responsibility of the trustees of the pension scheme to obtain an LEI from the London Stock Exchange, if requested by an investment firm, and a number of investment firms are already asking for this as they look to comply with the requirements in advance of 3 January 2018. Some investment firms are offering an LEI registration and renewal service and Rowanmoor’s customers are taking advantage of this. Alternatively, Rowanmoor will arrange to apply for an LEI on the scheme’s behalf and manage renewals for the scheme at the cost price of the LSE service and will not charge any additional fees for this.”
Cost of an LEI from the London stock exchange is Initial registration £115 plus Vat and an annual renewal of £70 plus vat.
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