What is an LEI code - and why is it important to have one?

What is an LEI code?

An LEI (Legal Entity Identifier) code is a unique identification number assigned to legal entities that participate in financial transactions. This code is used to identify and track financial entities globally, making it an essential tool for companies and organizations that operate in the financial industry.

If you're a financial institution, such as a bank, insurance company, or asset manager, you will likely need an LEI code. Similarly, if you're a publicly traded company or a large private company that engages in financial transactions, you will also need an LEI code. In fact, any legal entity that participates in financial markets, such as issuing securities or derivatives, must have an LEI code.

If you're looking for a trusted and reliable provider that maintains your corporate data and gives good customer service, please consider Global FinReg as your provider.

Background on the LEI-system

LEI codes were first introduced in 2012 by the Global Legal Entity Identifier Foundation (GLEIF) in response to the financial crisis of 2008. The goal of the LEI system is to create a globally unique, standardized identifier for legal entities that participate in financial transactions.

This enables regulators and market participants to easily identify and track counterparty risk, which is the risk that a counterparty in a financial transaction will not be able to fulfill its obligations.

The use of LEI codes has been mandated by regulatory bodies in various countries and regions, including the European Union and the United States. As of 2021, there are over 4 million active LEI codes issued by more than 1,500 Local Operating Units (LOUs) around the world. You can learn more about the global LEI-system and what an LOU is here.

GLEIF is responsible for maintaining the global LEI system and ensuring the quality and consistency of LEI data.

The need for a standardized and globally recognized identifier such as the LEI code is to improve the transparency of financial markets and ultimately to help prevent another financial crisis.

Our offering as a LEI code provider

As a leading provider of LEI codes, Global FinReg offers a fast and easy process for obtaining an LEI code. Our team will guide you through the process and ensure that your code is issued quickly and correctly.

In addition, we offer ongoing maintenance and support for your LEI code, ensuring that it remains valid and up to date. This is particularly important for organizations that operate in highly regulated industries, as non-compliance with LEI regulations can result in significant fines.

With our expertise and support, you can rest assured that your organization is in compliance with regulatory requirements and can participate in the global financial markets without any disruptions.

Pricing and services

When it comes to pricing, Global FinReg offers flexible options to suit the needs of different organizations. We offer LEI codes with validity periods of 1, 3, and 5 years, giving you the freedom to choose the option that best fits your organization's needs.

You get the cheapest LEI code if you choose a 5-year validity period. You can read more about our prices for different validity periods here.

Additionally, we offer services for transferring existing LEI codes to our platform. This can be a useful option for organizations that have already obtained an LEI code but are looking for a more reliable and efficient provider to manage it.

For organizations that require an LEI code with short notice, we offer an Express LEI Service, which allows you to obtain an LEI code the same day. This service is particularly useful for organizations that urgently need to participate in financial transactions.

In summary, Global FinReg offers a variety of options when it comes to obtaining and managing an LEI code:

• Various validity periods for the LEI code, which can be renewed before it expires.
• Transfer services for existing LEI codes to our platform
• Express LEI services for those in urgent need of an LEI code

With these options, we provide the flexibility and convenience that organizations need to comply with regulatory requirements and participate in the global financial market efficiently.