Since 2018, companies (legal entities, companies registered in the commercial register) can only carry out securities transactions if they have a so-called “Legal Entity Identifier (LEI)”. This is based on EU Regulation No. 600/2014 on markets in financial instruments (MiFIR).
The “Legal Entity Identifier (LEI)” is an internationally standardized and globally valid identifier for participants in the financial market (for securities and OTC derivatives transactions) and is used to uniquely identify business partners (e.g. companies, banks, investment funds, ....) and to fulfill certain reporting obligations to supervisory authorities. Each company must apply for its LEI itself at an issuing office and disclose it to its credit institution.
Information about the LEI application and renewal can be found on the WKÖ website (in German):
https://www.wko.at/finanzierung/legal-entity-identifier
From 2018, natural persons and unincorporated sole traders and freelancers can only carry out securities transactions if they have a so-called “National Client Identifier (NCI)”. The basis for this is EU Regulation No. 600/2014 on markets in financial instruments (MiFIR).
The National Client Identifier (NCI) is an internationally standardized and globally valid identifier for participants in the financial market (for securities and OTC derivatives transactions) and is used to clearly identify natural persons and unincorporated sole proprietorships and freelancers and to fulfill certain reporting obligations to supervisory authorities. This is intended to create more transparency and security in the financial market.
Every natural person, unincorporated sole proprietorship and freelancer may, without exception, only carry out securities and OTC derivatives transactions if their executing bank knows the standardized identification number NCI. This affects both securities purchases and securities sales.
The NCI is calculated from various defined personal data depending on the nationality. For customers of Austrian, French, Hungarian, Irish and Luxembourg nationality, the NCI is formed as standard from an identification number created from name, date of birth and country code. There is therefore no need for action here.
Further information can be found in the information sheet. If you have any further questions, please contact your customer advisor.
