The regulation that could prevent trusts from trading

Estimated 160,000 trusts could be affected

Tom Ellis
clock • 3 min read

A piece of new regulation could leave advisers who manage investments within a client's trust unable to trade certain financial instruments after the New Year deadline.

The incoming requirement for legal entities and structures to have a Legal Entity Identifier (LEI) - if they trade in certain financial instruments - is a part of the European Markets in Financial Instruments Directive (MiFID II) coming into effect on 3 January 2018.  Shares, corporate bonds, structured products, exchange traded instruments and venture capital trusts, are some, but not all, of the financial instruments subject to the regulation under MiFID II.  LEIs, which have existed since 2012 but have not been compulsory, are 20-digit alpha-numeric codes used within a global data ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

FCA acknowledges investment trust platform clash and proposes changes in call for wider CCI input

FCA acknowledges investment trust platform clash and proposes changes in call for wider CCI input

Final rules outlined in 2025

Eve Maddock-Jones
clock 19 December 2024 • 6 min read
WealthTek boss John Dance charged with £64m fraud and money laundering

WealthTek boss John Dance charged with £64m fraud and money laundering

‘One of the most serious and largest frauds’ ever investigated by FCA

Jenna Brown
clock 19 December 2024 • 2 min read
Number of financial firms failed by FSCS increases in October and November

Number of financial firms failed by FSCS increases in October and November

Including Charterhouse and Advice & Wealth Management Solutions

Isabel Baxter
clock 18 December 2024 • 2 min read