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, to establish principles and oversee the Global Legal Identifier Foundation (GLEIF). The GLEIF supervises the Local Operating Units and coordinates activities with ROC and other key stakeholders. Finally, the Local Operating Units (LOUs) otherwise known as LEI issuers, offer LEI registrants issuance, update, renewal of LEIs and provide LEI reference data to the market.
The Legal Entity Identifier (LEI) is a 20-digit reference code, following ISO Standard 17442:2012 and recognised 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’ or other private sector 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, international branches 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 to ensure 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. Plan to initiate the renewal of LEIs at least one month in advance of the annual renewal date to ensure all requirements are met in time for any deadlines. Using an LEI with a LAPSED status is at the user’s 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 GLEIF accredited - LOUs. In order to get an LEI, you may contact an LOU of your choice which issues LEIs in the jurisdiction you require. A list of all endorsed LOUs and can be found on the Global LEI Foundation (GLEIF) website. 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 is is fully accredited LOU for 37 jurisdictions. The LEI Service has an established track record 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 committed to operate in compliance with the ROC principles and GLEIF standards to ensure high levels of data quality. To make use of LuxCSD’s LEI services, simply access the LEI pages on the LuxCSD website for information on the requirements and how to initiate your request. Should you require further assistance, simply send an email to the LEI service team with your questions. You will be contacted by one of the multi-lingual LEI Service employees, who speak English, French, German, Luxembourgish, Portuguese and Dutch, during regular business hours.