More than 1.7 million companies have an LEI number and are considered to be part of the global Legal Entity Identifier system – the publicly accessible and publicly verifiable live repository of legal entities. Organizations are expected to have LEIs to meet legal requirements, build trust in their identity, and demonstrate their legitimacy.
What is an LEI number?
The Legal Entity Identifier, or LEI Code for short, is a 20-digit number that is assigned to an individual legal entity in accordance with ISO 17442 and thus uniquely identifies participants in the financial market. As a recognized, uniform and global system, the LEI pursues one primary goal: more security and transparency for all parties involved.
Why was LEI conceived in the first place?
The individual LEI number is a direct response to the causes that led to the global financial crisis and links parties in financial transactions (e.g. legal entities or investment funds) for the first time as a recognized identification system — Independent of country, government or form of government.
How do I know if my company needs an LEI number?
All companies and legal entities that participate in the trading of derivatives and have to report this to a trade repository since 12.02.2014 according to Article 9 EMIR (European Market Infrastructure Regulation) must identify themselves with an LEI
So if your company is one of the following, you probably need an LEI:
- A bank or credit institution
- An investment fund
- An insurance company
- An investment service company
- The LEI is may also be of interest to export-oriented companies as well as for other companies, of the real economy, which conclude derivative contracts.
If your company is one of the following, you may still decide to elevate public trust by getting an LEI number:
- registered companies including registered subsidiaries
- Foundations and funds
- charitable and non-profit organizations
- public institutions and authorities
- Sole proprietors with an entry in their local register
- Branch offices (Especially if your main office already has an LEI)
An LEI should NOT be requested for individuals. Corporate divisions also do not need their own LEI; the LEI of the parent organization can be used for this purpose.
For some companies, the Legal Entity Identifier is not voluntary but mandated by local, national or international regulations. You can find out more regarding these regulations on the GLEIF-Website.
How do I get an LEI?
At Leiregister.se you can get your lei-kod in mere minutes! They provide 1, 3 and 5-year packages and also take care of the yearly renewal of your LEI number. Leiregister.se is an agent collaborating with RapidLEI. RapidLEI is a fast-growing LOU (Local Operation Units). This means RapidLEI has legal permission to conduct the registration and renewal of LEI numbers on behalf of its customers and agents. These permissions are granted by GLEIF (Legal Entity Identifier Foundation ). GLEIF is the public institution that supports the establishment and implementation of LEI numbers and is supervised by the Legal Entity Identifier Regulatory Oversight Committee (LEI ROC). The GLEIF-website can also be a useful tool to identify the LEI number of a company.
Which information will be published on the GLEIF website after receiving an LEI number for my company?
The following reference data is made publicly available in the GLEIF database:
- Date of LEI first assignment
- Date of last change of stored information
- Due date of next LEI renewal
- Official name of the legal entity or fund manager
- Register name and register number
- Legal form of the entity
- Legal domicile of the head office or fund manager
- ISO country code (e.g. DE, SE etc.)
What do the digits in my LEI number represent?
Similar to IBAN (International Bank Account Number) or BIC/SWIFT (Business Identifier Code), the LEI code is composed according to an ISO standard. Thus, the LEI code format is the 20-digit alphanumeric ISO 17442:2012:
Example of an LEI Code:
LEI Code: 1111| 22| 333333333333333333333 | 44 44
- 1111: four-character prefix for the LOU (Local Operating Unit)
- 22: two-character separation, provisionally reserved
- 333333333333333333333: twelve-character identification of the legal entity
- 44 44: two-digit checksum