Legal entity identifiers
Options
maryanne5
Posts: 3 Newbie
Is there an alternative to the need for a legal entity identitifier. I have a small will trust, a five figure sum, with four unit trusts and have no immediate intention of selling any. The fee to register is £117 ?
And then £70 per year to maintain. These fees maybe acceptable for wealthy trusts, but extremely expensive and out of proportion for smaller value trusts. Any suggestions will be well come.
And then £70 per year to maintain. These fees maybe acceptable for wealthy trusts, but extremely expensive and out of proportion for smaller value trusts. Any suggestions will be well come.
0
Comments
-
You shouldn!!!8217;t need an LEI unless you are using exchange traded instruments, eg individual securities.
Holding unit trusts should be fine without0 -
If you have no intention of buying or selling anything, you can probably get away without one for a while, because it won't be used for transaction reporting if you never actually have any transactions on stock markets.
Once you have one you may not need to bother to renew it each year if you're not changing broker. But what you have probably found in your research so far is that brokers and custodians and trading venues which are placing or taking orders, have a duty to check that their clients which are eligible for an LEI, get one.0 -
It is rather odd that a Trust should require a Legal Identity Identifier
when according to
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/31676/11-1399-guide-legal-forms-for-business.pdf
Trusts are unincorporated and have no legal identity of their own. They are essentially legal devices for holding assets so as to separate legal ownership from economic interest.
A trust holds assets on behalf of an individual or another organisation and governs how they are to be used. A trust is run by a small group of people called trustees who are legally responsible for the administration of the trust and personally liable for any debts or claims against it that cannot be met out of the trust's own resources. Trusts make their own set of rules enshrined in a trust deed ; which sets the trusts objectives and may be used to ensure that assets and profits are used for a particular purpose. Trusts do not typically raise finance ; they simply manage assets and do not distribute profits. Trusts are often used in conjunction with unincorporated associations, which cannot themselves own property.0 -
Holding unit trusts should be fine without
In second link referenced in my post 4 above, one contributor writes
I'm told that you don't have need of an LEI if you concentrate your investments into unit trusts.
but doesn't say who told him this or on what authority.....0 -
LEIs are needed for trusts if they use reporting assets. If it uses non reporting assets then it doesnt need one. So, sticking to life funds and UT/OEICs avoids the issue.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
This discussion has been closed.
Categories
- All Categories
- 343.3K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608.1K Mortgages, Homes & Bills
- 173.1K Life & Family
- 248K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards