LEI allocation services
What is an LEI and who can request it?
The global Legal Entity Identifier (LEI) initiative is a significant industry development that has a considerable impact on the delivery of reference data services leading to transparency, easier reconciliation and improved risk management. The Global LEI System (GLEIS) comprises three bodies: the Regulatory Oversight Committee (ROC), endorsed by the G20 in 2012 to conduct the initiative and give recommendations for its implementation; it served as well as the endorsement body to authorize the pre-LOUs to start issuing LEI. The Central Operating Unit, which is the Global LEI Foundation (GLEIF) supervises and implements the GLEIS. Finally, the pre-LOUs (pre-Local Operating Units) offer to the markets issuance, update and renewal of LEI services to the market.
The Legal Entity Identifier (LEI) is a 20-digit reference code, following ISO Standard 17442:2012 and recognized globally, that allows unique identification of entities engaged in financial transactions, and the reference data associated to the entity.
LEI codes must follow two fundamental principles: an LEI code can only be attributed once (uniqueness) and one single entity can only be attributed one single LEI (Exclusivity).
Any entity engaged in financial transactions can request an LEI, based on its regulators’ requirements. It can be a registered corporate company, a fund or its subfunds, a pool, a trust or a compartment of an issuance program, a government or one of its bodies, a pension plan, etc. At the moment, the following entities cannot request an LEI: national branches, individuals, operating divisions and class of shares.
Once issued, the LEI will be valid for a period of one year. One year after the date of issuance, the LEI will have to be renewed in order to be kept current. An LEI that has been issued less than one year ago or that has been duly renewed after one year will have a status of ISSUED. If the LEI is not renewed after one year, it will expire and its status will become LAPSED. Renewing the LEI every year is very important: it helps ensuring that the reference data associated with the LEI is kept up-to-date as the LEI will be re-validated at renewal and any change of data will be reflected. Using an LEI with a LAPSED status is a the user own risk: the LOU cannot ensure that the associated reference data is still up-to-date and that no erroneous information regarding the legal entity is provided. Both the Regulatory Oversight Committee (ROC) and the European Securities and Markets Authority strongly encouraged all owners of LEI to renew their LEI annually to help keeping good quality and up-to-date data and avoid the circulation of erroneous information.
Who can issue an LEI?
LEIs are issued by pre-LOUs that have been endorsed by the ROC. In order to get an LEI, you may contact a pre-LOU of your choice which issues LEIs in the jurisdiction you require. A list of all endorsed pre-LOUs and can be found on the Global LEI Foundation (GLEIF) website. During the course of 2016 and 2017, the GLEIF will be conducting formal accreditation of LOUs to ensure high standards for operations and data quality are upheld.
LOUs apply the principle of self-registration: this means that any customer can register, update or renew by itself its LEI and the associated reference data at any time. The registration can be performed either by an employee of the entity being registered, or by a third-party mandated by the legal entity and duly empowered to register an LEI on its behalf.
Based in the international financial centre of Luxembourg, LuxCSD LEI Service has built a track record as a ROC endorsed pre LOU with an in depth knowledge of LEI requirements and market specifics . All LuxCSD issued LEIs conform to the ISO 17442 standards required for use in regulatory reporting. LuxCSD is fully engaged with the GLEIF LOU accreditation process and is committed to operate in compliance with the ROC principles and GLEIF standards. To make use of our LEI services, simply access the LEI pages on the LuxCSD website www.luxcsd.com from where you can link to the efficient self registration LEI portal which is available 24/7.
For more information on how the process works, you may consult our customer guides in English, French and German or send an email to the LEI service team. LuxCSD offers customer support in English, French, German, Luxembourgish and Portuguese from Monday to Friday, via phone and email.