CAs are interested in the underlying client for market abuse purposes rather than the owner of the legal title. Therefore, where there is a movement that results in a change in ownership for a client, the client should be reported as the buyer/seller as appropriate rather than any custodian/nominee that may hold the legal title. However, with the exception of transmission where the conditions for transmission under Article 4 are met, which is covered in section 5.26.3, Investment Firms should report their direct client. The Investment Firm is not expected to look behind their client or counterparty to try to determine the ultimate client. For example, where an Investment Firm does not have the details of the underlying client(s), it is not required to look through the trust to the underlying client(s) of the trust but just report the trust as the buyer/seller (which should be identified by its LEI). Where, however, the Investment Firm knows the client and sets up a trust arrangement as for Self Invested Personal Pensions the client should be reported as the buyer/seller and not the trust.

Note that business cases 5.8.1-5.10.1 below show the identification and additional details for buyers but the same approach applies to sellers.

5.8.1 Buyer/Seller that is eligible for a LEI

This applies in the following circumstances:

Buyer/Seller is a Firm or an Investment Firm that is a market counterparty;