What is an LEI?
A Legal Entity Identifier (LEI) is a 20-character identifier that represents a distinct legal entity engaged in financial transactions. LEI is a unique identification code based on the global ISO 17442 standard. Each LEI contains well structured reference data which is categorized into 2 sections – Level 1 – who is who and Level 2 – who owns whom.
LEI connects financial markets, companies and regulators. LEI’s are in use worldwide among different jurisdictions. The USA and European Union were the first to adapt LEI in financial reporting. The system has been designed for public and private partnership to improve transparency in financial data systems and to collate financial transaction information into a easily accessible global system.
An LEI can only be issued by a Local Operating Unit (LOU). A LOU is an organisation that has been accredited by GLEIF to issue LEIs in accordance with the protocols established by GLEIF.
The Global Legal Entity Identifier Foundation (GLEIF) is tasked to support the implementation and use of the LEIs.
Who needs a Legal Entity Identifier(LEI)?
There are a number of mandates currently in existence which state “no LEI, no trade” this means that both reporting parties and traders require an LEI. As of January 3rd 2018 all legal entities which wish to transact in European financial markets involving any kind of securities need LEI code. The use of LEI is required under a number of the European Union regulations and directives such as EMIR , MiFIR & MIFID II.
The investment service provider/bank has to make sure the traders have an active LEI if they wish to buy or sell securities.
LEIs should not be requested for private individuals.
GLEIF, LOU and registry agent.
GLEIF is the only global online source that provides open, standardized and high quality legal entity reference data. GLEIF’s goal is to increase quality of LEI data and to make the information easily accessible to public. As GLEIF is a non profit organization they collect the fee to cover the costs related to run free and open LEI database.
GLEIF manages a network of partners, known as the LEI issuing organizations or as Local Operating Units (LOUs). Accredited LOUs supply registration, renewal and other services, and act as the primary interface for legal entities wishing to obtain an LEI. LOUs work closely with registration agents.
A Registration Agent helps legal entities to access the network of LEI issuing organizations responsible for performing LEI issuance and related services. The Registration Agent may choose to partner with one or more LEI issuing organizations to ensure its customer’s needs for LEI services are met.
ISO 17442 standard
The ISO 17442 standard specifies the minimum reference data, which must be supplied for each LEI.
1 2 3 4
7 8 9 10 11 12 13 14 15 16 17 18
UNIQUE CHARACTERS FOR YOUR COMPANY
An LEI consists of 20 characters:
- First four numbers always show the ID of the LOU which has issued the LEI.
- The fifth and sixth characters have always a value of 0.
- Characters from 7-18 consist of digits and letters and are unique to each entity.
- The last two digits are for verification purposes.
Our registration process is simple, it takes less than a minute to fill the form to apply for an LEI.
The LEI can be applied by the authorised representative of the entity. We will require Letter of Authorisation or proof of authorisation if the applicant is not authorised according to the relevant company registry.
Each LEI contains well structured reference data: Level 1 – who is who – entity registration details (legal name, number of registration, legal and HQ address etc) and Level 2 – who owns whom – information about an entity’s ownership structure.
The industry standard for LEI registration is for 1-year. We offer multiyear LEI registrations and renewals. Registering/renewing your LEI for multiple years helps you save money from each year bought and saves you from the yearly LEI renewal duty.
LEIs are universal codes and are not tied to any specific country. LEI codes are valid worldwide regardless of the LOU that issued the code.
LEI renewal is an annual update of the registration data related to the Legal Entity in the GLEIF database, this means that LEI needs to be renewed each year for the following 12 month period. If the deadline has passed, your LEI will become inactive until renewed again. It is possible to renew your LEI 2 months before the renewal date without losing any time or money.
Every entity can have only one LEI therefore it is not possible to apply for a new one when your LEI is inactive, the lapsed LEI has to be renewed.
An LEI transfer is the movement of the LEI from one service provider to another.
If the customer is not satisfied with the prices, service or data quality they can move the LEI to another LEI issuer (LOU). In the process of transfer the LEI code remains the same.
LEI transfer process without renewal is free of charge.