FATCA, CRS & Legal Entity Identifier

FATCA
In March 2010 the United States passed on Foreign Account Tax Compliance Act (FATCA) to prevent US tax evasion. The purpose of FATCA is achieved by requiring foreign financial institutions to report to the US tax authorities (IRS) regarding customer relationships where the customer directly or indirectly is a resident in the US.

In  April 2013 Norway signed an intergovernmental agreement with the US (IGA model I) in which Norwegian public authorities undertake an obligation to ensure the collection of data from Norwegian financial institutions and then report these to the USA.

SpareBank 1 Markets is in this regard allocated GIIN number (Global Identification Number) CJ46YF.00000.LE.578.

CRS (Common Reporting Standard)
From 1. January 2016 SpareBank 1 Markets AS is committed to identify accountholders who are tax resident to other countries. New accounts cannot be created before the declaration is obtained and reviewed. If accountholder is tax resident in another country, the foreign identification number is to be obtained from the land issued such numbers. If accountholder is an entity the tax resident is where the account holder is domiciled.


EMIR, MiFID II/MiFIR and Legal Entity Identifier
SpareBank 1 Markets is allocated the following LEI number: 5967007LIEEXZX5AEG57
SpareBank 1 SMN is allocated the following LEI number: 7V6Z97IO7R1SEAO84Q32

The recent EU regulations EMIR (European Market Infrastructure Regulation) and MiFID II/ MiFIR (Markets in Financial Instruments Directive/ Markets in Financial Instruments Regulation) is also affecting Norway. EMIR requires reporting of all derivatives, and MiFID II/MiFIR also introduces reporting requirements for other financial instruments (with exception of FX spot and FX derivative contracts that are considered to be “means of payment” according to MiFID II/ MiFIR)

EMIR came into force in Norway in July 1, 2017. The reporting obligation for all market participants will start in January 1, 2018 and includes reporting requirements of all derivative contracts to Trade Repositories. The Financial Supervisory Authorities for countries in the European Economic Area (EEA) will hence have access to the records of derivatives traded in their country. The Financial Supervision Authority in Norway will later have access to all recorded trades completed by Norwegian investment banks. Each counterparty has an obligation to report the contract, however, it is possible to delegate the reporting of a contract to a third party.

MiFID II and MiFIR will come into force within the EU on January 3 2018. The Official Norwegian Report (NOU) of 2017: 1 proposes how the directive and regulation will be implemented in Norway. It is uncertain when this regulatory framework will come into force in Norway. In order to secure that Norwegian Investment firms and trading venues operate under the same framework conditions as their foreign competitors, the Financial Supervisory Authority of Norway has proposed, in a consultation letter dated September 1 2017, to introduce rules similar to the most important rules of MiFID II and MiFIR. Meaning that the regulations relating to reporting are proposed entered into force in Norway on January 3 2018.

Legal Entity Identifier (LEI) is a global identification number, which is used to identify legal entities participating in financial transactions, and in connection with reporting in the financial market. The international Global Legal Entity Identifier System was established as a result of an initiative by the G20-countries and the Financial Stability Board. A Legal Entity Identifier is a 20-digit reference code, which is unique for the individual legal entity. A Legal Entity Identifier is assigned by a Local Operating Unit (LOU), and the cost of generating a LEI number is approximately EUR 200, plus a yearly maintenance fee of approximately EUR 100.

SpareBank 1 SMN and SpareBank 1 Markets have made an agreement with REGIS TR in relation to regulatory reporting. SpareBank1 SMN/ SpareBank 1 Markets offer to report trades on behalf of customers, for contracts where SpareBank 1 SMN/ SpareBank 1 Markets are counterparties, to REGIS TR. The reporting service is offered without any additional costs, however, it requires the customer to obtain a valid Legal Entity Identifier.     

We request all businesses, which are, or plan in the future, to trade in financial instruments to request for a Legal Entity Identifier. As of January 3 2018 customers without LEI will not be able to trade in financial instruments covered by this regulation.

Legal Entity Identifier is a requirement, independent of the investment firm used for trading.

There are several providers of Legal Entity Identifier. Among others:NordleiWM DatenserviceLondon Stock Exchange and GMEI Utility

Once you have obtained a Legal Entity Identifier, please contact settlement@sb1markets.no