Legal Entity Identifier

 

Introduction and purpose of legal entity identifier

The Legal Entity Identifier (LEI) code is conceived as a key measure to improve the quality and accuracy of financial data systems for better risk management post the Global Financial Crisis.

The LEI is designed to enable the identification and linking of parties to financial transactions to manage counter party risk. Its goal is to help improve the measuring and monitoring of systemic risk and support more cost-effective compliance with regulatory reporting requirements.

Regulatory authority of LEI

The Global LEI System (GLEIS) has been set up by regulatory authorities [including G20 and the Financial Stability Board (FSB)] to address the global financial crisis. The online portals of the Financial Stability Board (FSB), Regulatory Oversight Committee and Global Legal Entity Identifier Foundation provide general information on the status of the global LEI system.

 

Why is Legal Entity Identifier required for organization?

The Legal Entity Identifier (LEI) is a global reference number that uniquely identifies every legal entity or structure that is party to a financial transaction, in any jurisdiction.
LEIL will assign LEIs to any legal identity including but not limited to all intermediary institutions, banks, mutual funds, partnership companies, trusts, holdings, special purpose vehicles, asset management companies and all other institutions being parties to financial transactions.
LEI will be assigned on application from the legal entity and after due validation of data.

Renewal of the LEI Code:

An LEI Code is generally valid for one year. In order to continue to use the code, it must be renewed through an application form. This can be found on the same online portal; the only difference this time around is to select the option “Modify and Renewal” and not the “Register” option. Again, any changes to this part will also need the authorised person to do so. In the form, once the LEI Code is entered in, all the details appear automatically. Any modifications to be made shall be made. The “LEI Renewal” checkbox has to be checked right and then the same process of form completion, payment and document submission is followed. On successful submission of all the above, the LEI Code is renewed, and the confirmation of the same is received.

The LEI registration form consists of 5 pages in total, including the payment gateway         

 

·       Submission of the documents: The applicant entity will have to upload all the necessary documents mentioned in the email. The total size of the uploaded documents should be 40MB. If the upload is unsuccessful, then the documents may be couriered to the following address:-

·    Verification process: Once the documents are uploaded or sent physically, they will be verified by the LEIL along with the application form. If necessary, the LEIL may ask for additional documents as well. The applicant entity may also be directed to make changes in the application form online by the LEIL.

·     Issue of LEI Code: The LEI code will be issued on the successful submission and verification of the form and the related documents. The LEI code will be sent in an email to the entity, and this code must be provided to the banks

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