EU Small NFC Trading with a Swiss Bank or Third Country

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• EU Small NFC Trading with a Swiss Bank or Third Country

EU Small NFC Trading with a Swiss Bank or Third Country

Status: Finalised Last Updated: 26/04/2021

Question:
What happens in the case of a EU Small NFC trading with a Swiss Bank acting as a borrower in connection with reporting Field 1.03 (Reporting Counterparty) that needs a LEI from the reporting counterparty, if the Small NFC does not have a LEI (in case where an EU Small NFC lender delegates reporting to a Swiss bank),what would the Swiss bank report in that case?

Best Practice:
Please see best practice SFTR-164 which includes the legal opinion from Linklaters regarding third-country, mandatory, delegated reporting obligations.

Similarly to the United Kingdom, Switzerland are not mandatorily obliged assume delegate status when facing a EU SME-NFC within scope.

See Guidelines – Reporting under Articles 4 and 12 SFTR 06 January 2020 ESMA70-151-2838

60. Regarding SFTs concluded between an TC-FC outside the scope of application of SFTR (i.e. not covered by Article 2(1)(a)(ii) of SFTR) and an SME NFC , such SFTs should either be reported directly by the SME NFC to a TR, or otherwise make use of the possibility for delegation included in Article 4(2). (SFTR-227)