What is an LEI?
A legal Entity Identifier (LEI) is a 20-digit alpha-numeric code, managed by the Global Legal Entity Identifier Foundation (GLEIF), designed to identify legal entities involved in financial transactions between corporations or legal entities.
Defined by the ISO 17442 standard, LEI numbers are important to improve transparency in the marketplace for entities and regulators and to collate financial transactions information into a freely accessible global system.
Who needs an LEI number?
Currently, Legal Entity Identifier numbers are mandatory for all trading entities. The regulation came into effect in 2018 where investment firms are expected to obtain LEIs on behalf of their clients in order to give transparent trading reporting requirements.
Corporations and legal entities are expected to renew an LEI annually in order to maintain trustworthy and high-quality data. Failure to which a‘LAPSED’ status in the GLEIF database reflects against your company name and will prevent you from successful trade reporting. If you’re in a jurisdiction where the use of LEI is required, this could mark your organisation for non-compliance, leading to a possible fine.
ManagedLEI offers multi-year LEIs and ManagedLEI Pro Services to avoid the risk of a lapsed LEI or reduce the burden of managing large LEI portfolios.