The Prudential Regulation Authority (PRA) has launched a new Solvency II webpage on legal entity identifiers (LEIs).
On the webpage, the PRA confirms that it intends to comply with the guidelines published by the European Insurance and Occupational Pensions Authority (EIOPA) in October 2014, in which Practical Law1recommends that LEI codes are used as unique identification codes for all institutions under the PRA’s supervision.
LEI codes are allocated and maintained in the UK by the London Stock Exchange. The PRA webpage states that all firms within the scope of the Solvency II Directive (2009/138/EC) should have requested a LEI code by 30 June 2015. All other insurers should request a LEI code by 30 June 2016.
The PRA also requests that all entities within a group obtain a LEI code, including holding and dormant companies. Whilst acknowledging that this may prove burdensome for some firms, the PRA believes the advantages of using LEI codes for regulatory reporting across borders and the financial industry outweigh this. In the event that entities within a firm’s group are unable to obtain LEI codes, the PRA suggests firms follow EIOPA’s instructions in the guidelines to try to resolve this.
The PRA requests that all firms notify their usual supervisory contact to confirm that a LEI code has been requested, as appropriate.
The PRA’s webpage on LEIs is http://www.bankofengland.co.uk/pra/Pages/solvency2/technical.aspx.