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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: Best Practice Finalised, Last Updated: 26/04/2021

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)


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