What is an LEI?

What is an LEI?

LEI stands for Legal Entity Identifier. It’s a unique code linked to a public register that contains regularly verified information about each firm participating in any financial transaction, worldwide.

What is the benefit of an LEI?

Transparency and an enhanced ability to calculate risk. The public LEI data constitutes a trusted “who’s who?” global directory. It lists essential company and ownership information for all firms engaged in financial transactions.

How do you know if you need an LEI?

Almost certainly. A current LEI is mandatory for any organisation wishing to participate in a financial transaction. You’ll need an LEI to fulfil your reporting obligations under MiFID II.

What is MIFiD II?

MIFiD II is the EU’s regulatory framework for virtually all professionals and assets in the EU’s financial services industry.

What’s the background?

LEI is a global standard introduced in the wake of the global financial crisis. The G20 introduced LEI in 2011 to replace an array of incompatible and inconsistent national standards of identification. The lack of a global standard was a factor that contributed to the global financial crisis of 2007-2008, as the preceding systems provided too much opportunity for fraud.

Who runs the LEI system?

The LEI system is implemented by the Global LEI Foundation, Gleif, which accredits Local Operating Units (LOUs) to verify company information and to issue LEIs.