When do you need a Legal Entity Identifier?
The use of LEIs within Canada is mandated by the Provincial Governments. LEIs have been compulsory in Manitoba, Ontario and Quebec since October 31, 2014 and across all other provinces and territories since July 2016.
Legal entities that trades in debt securities have been required to report the trades to the relevant body within their province for the past few years. Some other parties that operate at the periphery of the trade are also required to have an LEI, including reporting agents, brokers acting as intermediaries, clearing members, electronic trading venues and connected clearing houses.
APRA also requests LEIs from authorised deposit-taking institutions with regard to their largest exposures as well as any exposures that are equal to or greater than 10 of their Tier 1 Capital. Government-related entities are requests to provide LEIs for their largest exposures and all other exposures equal to or greater than 5% of their Tier 1 Capital. The requirements don’t go as far as mandating the use of LEIs, however, they simply instruct that they should be provided if the counterparty has an LEI.
Further, Canadian entities transacting in the European market were required to obtain an LEI in 2018 in order to continue operating within that jurisdiction following the introduction of the MiFID II.