Description
MiFID II is the Market in Financial Instruments Directive II. Together with the corresponding Regulation, MiFIR, they will become effective in the EU on 3-January-2018. Both aim at increasing investor protection and at bringing higher transparency to financial markets.
As part of the regulatory framework, investment firms will be required to report relevant transactions to the national authorities.
The parties involved either as a beneficiary or as a decision maker in a reportable transaction with financial instruments will need to be identified with a code:
1. Natural persons with National Identification Code (NIC)
2. Non-natural persons with Legal Entity Identifier (LEI)
The rules how to generate the NIC pursuant to MiFIR Article 26 and Commission Delegated Regulation (EU) 2017/590 are complex as they depend on the nationality and on the priority of the identifier.
This tool shall assist in the determination of the correct identifier for natural persons.
The user will need to pick the nationality or if this applies the multiple nationalities.
The tool will determine the nationality relevant for reporting. Depending on the nationality the user will need to provide a NIC. Investment firms will request the identifier with the highest priority. A fall back to a lower priority is possible for certain nationalities but will be allowed only if the user cannot provide the higher priority identifiers.