A legal entity identifier search can reveal a wealth of information about your company. More and more regulators across global financial markets and industries require or recommend that companies have an LEI for reporting purposes.
An LEI is a unique alphanumeric code that is assigned to entities that participate in international financial transactions. LEIs are obtained through a GLEIF-accredited Local Operating Unit (LOU) / Registration Agent.
How to Get an LEI Number
Legal entities are increasingly being required to obtain an LEI number by global regulators, financial markets and institutions, including banks. LEIs offer an internationally recognized and consistent reference system that enables transparency in financial transactions.
The process of applying for an LEI is relatively simple and straightforward, but the cost can vary between different providers. When comparing prices, you should take into account the quality of customer service and whether the provider offers competitive pricing and transparent costs.
Each LEI is unique to a specific legal entity, and it is used to uniquely identify the legal entity on a global database. The LEI database contains information about the entity, such as its legal name, registry where it is registered, registration number, and its address. The LEI code also displays the entity’s ownership structure, which is classed as Level 2 data.
Companies can get an LEI from a local operating unit (LOU) accredited by GLEIF. The LOU is responsible for managing the application, issuing and renewal process. The LOUs are independent of each other and may charge different fees for their services. It is important to find a provider that has an efficient and streamlined registration and renewal process to avoid delays in getting your LEI.
If you are a business that is not required to have an LEI, it is still recommended that you apply for one as it will help to improve the efficiency of your internal operations and make it easier to comply with regulatory requirements in the future. If you do not have an LEI, you could be at risk of complications with your regulators, financial intermediaries and banks, and your deals might be delayed or blocked.
The best way to obtain an LEI is to use a fully dedicated LEI search website like LEI Lookup, which will provide you with access to a comprehensive LEI database as well as the opportunity to register, renew and transfer LEIs. LEI Lookup also allows you to choose a package to register for 1, 3 or 5 years, and it takes care of the annual renewals in future, saving you time and resources.
Registration Process
A Legal Entity Identifier (LEI) is a unique 20 digit alpha-numeric code that links to a set of reference data about a legal entity. It can be used for a variety of business use cases including transaction reporting, KYC checks and proof of company registration or identity.
The LEI is assigned to a legal entity through its Local Operating Unit (LOU) or through a registered Registration Agent. Once the LOU or Registration Agent receives the application form and minimum required reference data, the LEI will be issued. The application process is quick and easy, and it can be completed by any representative of the legal entity.
Once an LEI is assigned to a legal entity, it is valid for one year, after which it must be renewed. The LEI renewal process is important to ensure that the data in the global LEI Registry remains accurate and up-to-date. An LEI that is not renewed will be reclassified as Lapsed and will no longer be able to be used for financial transactions.
LEI Worldwide offers a simple and convenient LEI registration process that allows customers to submit their application using a pre-populated LEI database. This enhances the user experience and speeds up the application process as it eliminates the need for the applicant to provide their own data manually. This enables the customer to concentrate on the key elements of their application and reduces risk that they will miss something essential.
Customers can choose whether to pay by card or invoice, which is a very flexible option as we understand that different departments may be responsible for payment, and no everyone will have their company card to hand! Once the application is complete, an email will be sent to the applicant confirming that their LEI has been issued. The customer can then log into their RAMP dashboard to view their LEI, as well as their reference data and the status of their renewals.
If you would like to register for an LEI, please click the Apply Now button below. Once you have clicked the button you will be asked to provide some basic contact details and then a link will be provided to the RAMP dashboard which will allow you to fill in the application. The dashboard is simple to use, and the application form can be filled out either manually or using the autofill function which can help speed up the process significantly.
Renewal Process
The LEI renewal process is a key component of keeping your business compliant with global regulations. The 20-character alphanumeric code is a unique identifier that connects to supporting data on your company’s legal structure and financial activity. Regulatory bodies and other market participants use the data to make better informed decisions when assessing risk and making transactions. As an example, investment service providers and banks may require you to have a valid LEI before offering services to your company. If you fail to keep an active LEI, you might face penalties or be denied access to certain markets.
Your LEI will need to be renewed at least once a year to stay ACTIVE. Failing to renew will cause your LEI to be placed into a LAPSED status within the Global LEI System index, meaning it will no longer be available for trading or regulatory reporting. Ensure your LEI is renewed well in advance of its expiry date to avoid any potential problems.
The renewal process for an LEI typically involves updating and confirming the information that is associated with your company’s data record. This can include changes to the entity name, authorised representatives and Level 2 data. The Level 2 data is linked to the parent entity and provides information such as the number of branches, subsidiaries and shareholders.
After the information is submitted, your chosen LOU will verify and validate it. This step is crucial as it ensures that your LEI data meets the standards set by GLEIF. Moreover, it will also address any issues with your application or information provided.
You can choose to submit your LEI renewal application via the online portal of your preferred LOU or you can complete a paper-based application. In either case, you’ll need to provide a copy of your company’s official documents. The process typically takes less than a week, and you’ll receive an email confirmation once it has been completed, so see here as well for understanding LEIs: a detailed overview.
You can also transfer your maintenance of an existing LEI from one LOU to another if you wish. This will involve contacting the new LOU, specifying your existing LEI and providing any other documentation required by the new LOU.
Fees
Getting an LEI code is an important step for businesses. It can help them to improve credibility and transparency, access financial markets, and ensure compliance with regulations. The process is relatively easy, but there are some fees associated with obtaining one. This is why it is crucial to choose a provider with a good reputation. Choosing a low-quality provider could result in delays, costly errors, or even a rejection of the application.
The cost of obtaining an LEI is not set by the Global Legal Entity Identifier Foundation (GLEIF). Instead, it is left to individual service providers to decide on the prices they charge for their services. Some service providers have different fees for registration and renewal, so it is important to compare the pricing options available before choosing a provider.
Once you have chosen a service provider, you can complete the LEI application online. You will need to provide basic information about your business, such as the name, address, and contact details. You will also need to enter the names and roles of people with responsibility for the entity, such as the CEO or owner. You can also choose to report level 2 data, which allows you to include information about your parent company if required.
After submitting your application, the GLEIF will assign your LEI number and send it to you by email. You will then need to validate the LEI by entering it in a validation tool provided by your service provider. Once you have verified the LEI, you can start using it in your business transactions and in documents submitted to regulators.
The demand for LEIs continues to grow as more industry verticals and jurisdictions implement legislation that requires them for reporting purposes. For example, if your firm is a MiFID II trader, you will need an LEI in order to fulfill your transaction reporting obligations. There are now over 144 pieces of legislation globally that require or recommend the use of an LEI. If your firm is not using an LEI, you risk not being able to execute trades and being fined by regulators.
