Any legal entity trading on a global market needs a Legal Entity Identifier (LEI). LEIs are becoming the standard globally to help deliver transparency and reduce risk in financial transactions.
Registering for an LEI is a straightforward process. The application asks for a few pieces of information including the name of the company and a representative. It also asks for parent company information and data, however this is optional.
Access the LEI Register
Legal Entity Identifiers are used by the global financial industry to verify and uniquely identify a legal entity (company) anywhere in the world. These unique codes help reduce duplication in the identification of companies globally and allow for more efficient and transparent business transactions. They are required by many international regulations for certain types of financial activity, and are increasingly becoming a standard for all businesses that want to improve transparency in their operations.
The LEI is managed by the Global LEI Foundation, a not-for-profit organisation founded in June 2014 to support and oversee implementations of the LEI and host the main database. This centralised management ensures consistency and reliability across the global market, and helps drive greater transparency and accountability in the financial industry.
To find an LEI, you can search the Global LEI Register by its LEI code or company name. The Global LEI Registry contains a wide range of Level 2 data about the legal entity, including its registered address, name of the director or person legally responsible for the entity such as the CEO, Owner or legal representative, and ownership structure.
You can also discover whether an LEI is ACTIVE or INACTIVE, and the date of its last renewal. An ACTIVE status means the LEI code is valid and that the corresponding Level 1 data in the Global LEI Registry is up to date. An INACTIVE status can be a result of a change in the legal parent company, or if the Legal Entity has closed or been acquired by another company.
LEIs can be renewed each year, and the Global LEI Registry will automatically renew yours if it is due to expire. You can also manually renew your LEI if you wish.
The best way to check an LEI is to use an online LEI lookup tool, such as RapidLEI. These tools are easy to use and offer a complete global LEI database, plus the ability to check LEIs by company name or LEI code. Some of these tools even offer the option to enter a partial company name, with autosuggestion helping you choose the correct one.
Search by Entity Name
Performing an LEI search using a specific name is the easiest way to get the results you need. The global LEI database is updated regularly, allowing you to easily discover whether your business has been linked to a particular criminal act, reducing the time and effort needed for due diligence.
While the LEI is not a legal requirement, it is an internationally recognised marker that helps businesses to build trust and transparency across global markets. Almost all global regulators recognise and endorse the use of LEIs. In addition, the LEI is an exclusive mark that cannot be transferred between businesses, adding a level of integrity and security to the global marketplace.
The LEI is a 20-character alphanumeric code that connects to key reference data, enabling clear identification of legal entities participating in financial transactions on international markets. The code is assigned by the local operating unit (LOU) that receives applications from legal entities. The LOUs benefit from their local knowledge of infrastructure, corporate organizational frameworks and business practices. They collect a one-time initial registration fee and annual maintenance fees to help cover their operating costs, while a portion of those fees is also shared with the non-profit Global LEI Foundation.
Once an LEI is assigned, it remains the same throughout the entity’s lifecycle, even through mergers, acquisitions, bankruptcy and dissolution. The local operating units (LOUs) update the Global Entity Identifier System (GLEIS) with the relevant information each time a change occurs.
When you submit an LEI application, we cross-match the information you provide with what is recorded by your local companies registry. In some cases, we may ask you to submit further documentation to confirm the information that you have provided. For example, we might request a Certificate of Incumbency or Register of Directors from companies in the US, or a copy of your articles and memorandum of association for UK companies.
Once you have a LEI, you can “port” its maintenance from one LOU to another. The authorised representative of the LEI holder should contact the new LOU and specify the LEI number, providing any other documentation requested by the new LOU.
Narrow Down the Search
The LEI is a global reference code for legal entities participating in financial markets. It’s like a barcode that can be used across markets and jurisdictions to identify them instantly and precisely. This helps with regulatory compliance, enhancing transparency and trust in the financial market. It is essential for companies and legal entities that are operating in the financial sector, especially those who participate in global transactions and reporting – as shown in this guide about lei codes as well.
When registering your LEI, it is important to have all of the required information ready. This includes your legal name, registered address and other key details about your business structure. Having this information at hand will help streamline the registration process and minimize delays.
Once you have all of the required information, the next step is to access the LEI Register. You can do this by visiting the designated website. Once you are on the LEI Register, enter your entity’s name into the search bar to retrieve a list of matching results. If you are having trouble finding your entity, consider narrowing down your search by adding more criteria. For example, you can search by location or registration status to find your LEI more efficiently.
After applying the necessary filters, review your search results to make sure you have found the correct entry. Each entry will display the LEI code, as well as other important information such as its legal name and registration details. Once you have found the right entry, note down its LEI code, which consists of 20 characters comprising letters and numbers.
Once you have your LEI, you will need to report on it and use it in all of your financial transactions. You should also renew it annually to ensure that it is always accurate and up-to-date. For this reason, it is recommended that you choose a reputable LEI issuer to register and manage your LEI. For example, LEI Worldwide offers a simple online registration process and an emphasis on management of LEIs through its RAMP system. It is trusted by thousands of companies, banks and financial institutions globally.
Purchase Your LEI
An LEI is a unique alphanumeric code that identifies legal entities participating in financial transactions and reporting tasks. It helps to standardize the information about those legal entities across markets and regulators. It reduces the risk of inconsistent and incomplete data and makes it easier to discover criminal activities that may have been undertaken in connection with financial transactions. It is also a requirement under many regulations such as MiFID II to obtain an LEI for firms engaging in trading on the European Markets.
Purchasing an LEI is an easy process and can be done by anyone with access to the company’s details. The application form only takes a few minutes and any representative of the entity can apply. Once your LEI has been issued you will receive a PDF certificate which you can share with partners and regulators, as verified proof that you have passed all KYC requirements.
LEIs need to be renewed annually and there is a penalty for not renewing in time. If a lapsed LEI is presented to a trader or regulator then it can cause delays and potentially result in penalties such as financial fines. At LEI Service we recommend re-registering an LEI 60 days before it is due to lapse.
The fee for obtaining an LEI can vary from provider to provider, but it is important to include the cost of management into your decision making as an LEI needs to be managed and updated each year. At LEI Worldwide we provide a complete system that provides you with an online dashboard, alerts and reminders.
We believe that this approach to LEI management allows our clients to be on what we call the ‘LEI Happy Path’. This means that you have a safe and secure management system for your LEIs, are reminded when they are due to renew and have the peace of mind that we can help you if you run into any problems with the LEI management process.
The Global Legal Entity Identifier Foundation (GLEIF) regulates the Global LEI Registry and ensures the integrity of the system, which is maintained by Local Operating Units (LOUs). Each LOU is accredited by GLEIF to issue LEIs and to manage local data collections and maintenance.