On 1 April 2022, the FCA updated its webpage on UK SFTR news by adding a new section ‘Reporting Legal Entity Identifiers (LEIs) of non-EEA third country issuers under UK SFTR’.
The updated text reminds firms that in April 2021, the FCA extended a period of forbearance for the reporting of LEIs of non-EEA third country issuers under the UK Securities Financing Transactions Regulation (UK SFTR). This was put in place to reduce potential market disruption resulting from the large number of non-EEA third country issuers without a LEI. This forbearance is due to expire on 13 April 2022. The FCA states that whilst the industry has made further progress in wider LEI coverage, it is aware that many non-EEA third country issuers have still not acquired an LEI which may impact reporting under UK SFTR after 13 April 2022. In recognition of this, the FCA is extending the period during which reports under the UK SFTR without the LEI of a non-EEA third country issuer will be accepted until 13 October 2022. Reporting counterparties should report a LEI for non-EEA third country issuers where one is available and continue engaging with non-EEA third country issuers to encourage them to acquire a LEI if not.