Get LEI code to Identify Business Globally.
Global legal entity identifier number in a standardized form. Governed by the GLEIF - Global Legal Entity Identifier Foundation. Endorsed by G20 countries.
Secure Financial Transactions with LEI code
ISO 17442 - all organizations are eligible for the LEI code. It is needed by any legal entity whose activities incorporate financial transactions.
LEI code Level 2 Data
Who Owns Whom
Level 2 data enables the identification of the direct and ultimate parents of a legal entity and vice versa.
“LEI” is short for the “Legal Entity Identifier.” It’s a 20-digit code consisting of both letters and numbers to comply with ISO 17442 standards. LEIs are assigned to legal entities that engage in financial transactions. Each LEI is unique to that entity, and each entity may only be issued one LEI.
Note that a valid LEI does not constitute permission for an entity to make those transactions. Such permission is usually granted by the licensing commission in the entity’s jurisdiction of formation. The LEI merely identifies the organization. Verification of is right to transact financial business must be obtained from the licensing authority.
The LEI is used by supervisors and regulators to identify entities who are parties to transactions in global financial markets.
Almost every entity worldwide whose transactions touch nations in the European Union (EU) need an LEI. The EU made LEI disclosure mandatory for derivative transactions with Implementing Regulation No. 2017/105, implemented 1 November 2017. LEIs are also used to identify parties to over-the-counter derivatives trades, per the European Market Infrastructure Regulations (EMIR).
As of 1 January 2017, companies that issue LEIs must have LEIs themselves.
Any entity that is a party to a financial transaction can apply for an LEI. Examples include:
Individuals do not need LEI. Neither do divisions of a larger company; they should use the LEI of the parent company.
Regulators and supervisors in various jurisdictions use LEIs to keep track of the identities of parties to financial transactions in global markets. This helps those regulators and supervisors track cases of financial abuse and verify compliance of the parties with laws and regulations that protect investors and consumers.
An entity applying for an LEI must supply an authorized LOU with its:
If an LEI is required by regulators but not provided by any party to the transaction, any service providers facilitating the transaction will not be able to comply with its reporting obligations. As such, the service provider will most likely decline or refuse to provide those services, and the transaction is unlikely to close.
GLEIF stands for “Global Legal Entity Identifier Foundation.” GLEIF is the supervisory body established by the EU Financial Stability Board (FSB) to oversee and ensure the integrity of the LEI system. With headquarters in Basel, Switzerland, GLEIF can be found on the web at www.Gleif.org.
GLEIF is accountable to the LEI Regulatory Oversight Committee (LEI ROC), a body that verifies the quality of the work GLEIF does in maintaining the LEI system.
LOU stands for the “Local Operating Unit.” These entities are authorized to issue LEIs to qualified entities, under the supervision of GLEIF. LOUs keep those registered LEIs on file, making them available free of charge to regulators and the public.
An LEI registration agent is a company that helps entities apply for an LEI, often acting as a middleman between the applicant entity and the LOU who issues the LEI.
LEIs expire every year unless they are renewed. This is to make sure that regulators have the most up-to-date information available to identify parties to financial transactions.
GetLEI allows entities to pay for multiple years’ worth of registration in advance for their convenience. GetLEI then assumes the burden of verifying that the information is accurate each year.
Financial service companies who process transactional documents may be required to report the LEI of the parties to the transaction. If any party entity has not furnished its LEI on the transaction documentation, or if the LEI has expired, the financial service company may refuse to perform its role due to its inability to meet regulatory requirements. In this circumstance, the transaction will most likely fail to close.
GetLEI usually delivers valid LEIs within 1 to 24 hours of application and receipt of payment.
An LEI application must include both the address of registration (found on the entity formation documents) and the address of headquarters (where the entity actually does business). These addresses can be the same, but both must be furnished to register an LEI.
The validity of an LEI can be checked using the search field at www.glief.org. The GLEIF database is updated once per day around 14:00 CEST.
Banks and other financial institutions verify LEIs with GLEIF. If your LEI was issued or renewed after 14:00 CEST, the changes might not reflect in the LEI database until 14:00 CEST the next day.
The different registration and validation statuses you find on file with the managing LOU mean the following:
LEIs are issued by LOUs (Local Operating Units) authorized by GLEIF to issue LEIs, store the records of those LEIs, and make them available to regulators and the public.
Any person authorized by the entity to register the LEI may do so, whether it be entity officers, employees, controlling interest officers or employees, or authorized third parties.
ELF refers to “Entity Legal Forms.” As of 1 March, 2018 GLEIF has implemented a system of four-digit standardized alphanumeric codes identifying the entity’s country of formation and type of entity. For example, a Public Limited Company formed in the UK gets the ELF code B6ES.
Different corporate actions have the following impact (if any) on the status of the entity’s LEI:
An LEI is valid for one year after completion of registration. If that year elapses and no renewal action is taken, the LEI’s status is changed to “LAPSED” and it no longer meets the reporting requirements mandated by regulators.
Level 2 Relationship Data discloses the ultimate, highest-level parent entity of a registered entity, as well as the direct consolidating parent. Level 2 Relationship Data must be disclosed per directives from GLEIF and LEI ROC issued 1 May 2017.
Only if you provide an acceptable “exception reason.” Exception reasons include:
Applicant entities that do disclose Level 2 Relationship Data must disclose if the parent company has an LEI and provide corroborating data, including the Accounting Period and the Relationship Period.
LEIs under the management of one LOU can be transferred to the management of a different LOU at the request of an authorized agent for the entity. Such a request can be submitted using the LEI Transfer. The 20-digit LEI code will not change, but the maintenance obligation of that LEI will pass to the LOU of the transfer.
No transfer fees apply to the transfer of an active and valid LEI. However, lapsed LEIs will incur a renewal fee. Transfers may also take longer than other LOU transactions, as they require coordination between two different LOUs.
LEI ROC has enumerated limited conditions under which individual acting in the capacity of a business may qualify for an LEI. In general, however, LEIs are restricted to entities. Individuals cannot register for LEIs.