Communal Associations Require a LEI

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.

  • News

    LEI Subscription Service – Now Available!
    20.04.2020
    Take advantage of our LEI subscription service now and let us manage your LEIs! During your next LEI-renewal simply select your favorite subscription in the shopping... Read more.
    Early Bird renewal now available
    11.01.2020
    From now on, you will be able to renew your LEI already 180 days before the expiration date is reached and utilize the following benefits: Your LEIs continuously... Read more.