An Australian regtech has partnered with the London Stock Exchange (LSE) to help local financial services firms address compliance in time for the looming MiFID II deadline.
APIR Systems will be the LSE's registered agent in Australia and South East Asia to support the issuance and maintenance of legal entity identifiers (LEI), which of late has become a more complex process to acquire.
The partnership will enable Australian entities to obtain an LEI to remain compliant with global standards requiring improved transparency of financial transactions across jurisdictional borders. Level two data requirements for example, requests mandatory information on an entities' parent-child hierarchy.
APIR Systems chief executive Chris Donohoe said although MiFID II is relatively new to Australian entities it does impact a broad range of financial services firms that transact with European counterparties, including funds, self-managed superannuation funds (SMSFs) and traders.
"APIR is already Australia's identification standard for a range of unlisted financial instruments since the late 1990s, it is a natural evolution for APIR Systems to join the global LEI initiative," Donohoe said.
He said the firm began issuing LEIs in 2015 and the partnership will enable it to leverage LSE's technical expertise and global scale. APIR has offices in Canberra and Sydney.
Industry estimates by the Global Legal Entity Identifier Foundation shows 250,000 entities still require LEIs ahead of 3 January 2018, when MiFID II takes effect.
According to the European Securities and Markets Authority (ESMA), firms should not trade with counterparties that do not have an LEI as they will not be able to submit valid transaction reports.
A mid-year survey found alternative asset managers with offices outside the European Union were struggling with the implications of MiFID II.
More than a third (34%) were undecided about how to pay for MiFID II research.