During his welcome address at a conference on the Legal Entity Identifier (LEI), the Hessian Minister of Economics Tarek Al-Wazir promoted Frankfurt as potential location for an office of the Swiss Global LEI Foundation (GLEIF). His audience consisted of around 120 financial industry agents, bank supervisors, and central bank representatives. .
Among other things, the Hessian government offers a start-up financing in the amount of EUR 500,000 should the foundation decide to come to Frankfurt.
The proposed GLEIF office will be in charge of controlling the worldwide network of LEI allocation agencies, it will set new standards, and it will ensure data quality. However, to assign Legal Entity Identifiers will not be the task of GLEIF. This is done via the so-called Local Operating Units (LOUs). In Germany, WM Datenservice has been endorsed as one of the LOUs. Domestic and foreign financial market participants that are subject to financial reporting requirements may apply for a LEI at www.geiportal.org.
For more details (in German language), please click here: www.geiportal.org/wp-content/uploads/2014/10/Hessen-lockt-GLEIF-nach-Frankfurt.pdf
Although the negotiations between communal associations and the German Financial Supervisory Authority (BaFin) have resulted in an EMIR exemption of such associations and their legally dependent municipal enterprises, they require a Legal Entity Identifier (LEI) if they want to make any OTC transactions..
For their financial reporting, banks always need the LEI of all contracting parties involved in OTC deals. Thus, also communal associations will have to obtain a LEI if they are engaging in OTC transactions.
It is less clear whether or not public sector institutions and special-purpose associations will be exempt from the EMIR requirement or not.There is the general presumption that such institutions do not meet the criteria of a company as defined by EMIR. But if they also engage in other activities, then the focus of such activities matters.
If the financial statements show that income from economic activities exceeds the income generated with activities that can clearly be associated with acts of public authority, an EMIR requirement applies. Income that cannot clearly be associated with either type of activity is not considered.
Municipally owned private-law enterprises can be classified as companies as defined by EMIR. Consequently, the EMIR requirement applies to them.