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.
In June 2012, the Financial Stability Board (FSB) published its report, A Global Legal Identifier for Financial Markets which set out its recommendations and proposals to overcome the weaknesses in financial reporting by identifying participants in any financial transaction. On 28 May 2019 the FSB published the Thematic Review on Implementation of the Legal Entity Identifier. This is a peer review report on the implementation of the Legal Entity Identifier (LEI) and expresses a continued commitment to the wider use of the LEI globally. The FSB formulated four sets of recommendations to accomplish the G20’s objective of broader LEI adoption.
The FSB recommendations have a direct or indirect impact on several functions of central banks. They are summarized as follows:
GLEIF meets its objectives by offering a broad range of data services to LEI data users, including central banks. These services are summarized below.
Core services cover the access and use of LEI data. This includes Level 1 data (‘who is who’) and Level 2 data (‘who owns whom’).
Since the global LEI system was endorsed by the G20 in 2012, over 1.4 million registrants in over 200 countries have registered for an LEI. For more detailed information on LEIs issued and other key facts and figures, see LEI Search and LEI Statistics.
This GLEIF service delivers clarity on the direct and ultimate parents and children of a legal entity with an LEI. This is based on the International Financial Reporting Standards (IFRS) or the United States’ Generally Accepted Accounting Principles (GAAP), as mandated by the LEI ROC policy.
GLEIF additionally provides the following services for users:
In many jurisdictions around the globe, public authorities rely on the LEI to evaluate risk, take corrective steps and, if required, minimize market abuse and improve the accuracy of financial data. However, GLEIF has no mandate to define the strategy for the use of the LEI by the public sector based on article 10 of the GLEIF Statutes. LEI data is already used for many public purposes such as for reporting to regulators and statistical purposes.
GLEIF publishes a regularly updated overview related to Regulatory Use of the LEI, which provides a summary of more than 100 current and proposed regulatory activities which include the use of the LEI.
GLEIF has formulated a strategy for the use of the LEI by the private sector that includes, but is not limited to:
With the support of a global consultant firm, a research initiative is now underway to investigate how a substantial increase in LEI issuance may be possible. The resulting report is planned for release before the end-2019.
The LEI can support the following five central bank functions.
The ISO 17442 LEI is a “relevant internationally accepted communication standard” that meets the requirement of the Principles for Financial Market Infrastructures (PFMI) Principle 22 to facilitate efficient payment, clearing, and settlement for financial market infrastructures (FMIs). The FSB Thematic Review on Implementation of the Legal Entity Identifier recommends that policymakers should consider including the LEI in cross-border payment transactions.
Select central banks (European Central Bank and the Bank of England) require participants of their real-time gross settlement (RTGS) system to have an LEI. They now require that an LEI is included in the payment settlement messages based on the ISO 20022 standard. The GLEIF LEI-2-ISIN service facilitates the collateral management of central banks.
In a step towards facilitating global trust, some central banks require XBRL messages for regulatory reporting inclusive of the LEI. XBRL, or eXtensible Business Reporting Language, is an open international standard for digital business reporting. Recently, GLEIF and XBRL cooperated to include the LEI in the XBRL standard and for iXBRL reports.
The Committee on Monetary, Financial and Balance of Payments Statistics (CMFB) is a strong supporter of the LEI initiative and is promoting the universal use of LEI for global entity identification purposes. CMFB is now cooperating with GLEIF to determine how the LEI could be best included in datasets.
Central banks are involved in open market operations and need to understand the data of their counterparty (inclusive of changes of data elements during the duration of the contract).
Please note that this article was recently published in Central Banks Payment News.