There have been a number of developments across the global financial landscape in terms of regulations in recent months. With the dawn of a new decade, brings about a new era in terms financial regulations and compliance in the global market.
Below are a few of the most recent and notable developments watch as we move into Spring 2020.
Reserve Bank of India (RBI) LEI Requirements
RBI LEI Deadline - 31st March 2020
The RBI has now mandated that eligible participants are required to obtain Legal Entity Identifier by March 31, 2020.
In case of failure to obtain LEI within due date, the Bank shall not honour any kind of banking transactions of defaulting eligible participant.
This requirement refers to having an LEI in its ACTIVE state. Therefore, if you already have an LEI, you can ensure it never expires by subscribing to automatic renewals here.
LEI Requirement for SFTR Reporting
SFTR LEI Deadline - 13th April 2020
There has been a huge demand for measures to be taken to reduce risk and increase compliance requirements in this area. This stems from the need of transparency from the global financial crisis.
Market participants will be required to provide an LEI in their reports from 13th April 2020.
Currently the European Securities and Markets Authority (ESMA) is allowing a grace period of 12 months for third country issuers, but for those in the EU must ensure their LEIs are active by April 13th.
BE-10A LEI Requirement
LEI Requirement for HMDA Reporting
The LEI is a G20 endorsed globally verifiable unique identity code. The LEI exists to confirm the identity, and existence of a company and its structure on an international level.
The objective of the LEI system is to deliver transparency to the global financial system, although the benefits are far greater. The LEI improves KYC workflows and increases trust in transactions on a global scale and is even predicted to save the banking industry between 2-4 Billion USD annually!
LEI Worldwide are currently managing a large portfolio of client LEIs, including some big name brands. Darragh Hayes, Director at LEI Worldwide stated;
We help by providing these usually large corporations with a single LEI management solution.
This allows the whole organisation to use LEI Worldwide as a single point of contact to monitor, renew or access their LEI data, without the use of passwords or multiple accounts."
Thanks for Registering and Renewing our LEIs. We are extremely satisfied with your service and response to our queries.
Q: Why is the LEI important, and why should I get one?
Currently, LEIs are required by all firms conducting transactions within the global financial system. However, the benefits of having an LEI are greater than the necessity and that is why many companies are applying for their LEI codes in greater numbers than ever.
Immediate benefits include providing you with an instant credibility boost, and an internationally recognised identity card. The LEI is the most modern and trusted way to protect your online identity and build trust in your company. You can also benefit from the added layer of identity security and prevent any such related errors.
It is the mission of LEI Worldwide to facilitate this global mass adoption to the Legal Entity Identifier, by making them as accessible as possible to entities all over the world." – Robert O’ Reilly, Senior Partner, LEI Worldwide
Q: How to get a Legal Entity Identifier
Obtaining a Legal Entity Identifier is a very simple process. LEI Worldwide provide the platform to easily:
• Register a new LEI for a legal entity
• Renew an existing LEI
• Transfer an existing LEI to LEI Worldwide for free
• Make bulk orders, renewals or transfers in one go
• Register an LEI for up to 3 or 5 years which includes large discounts
• LEI Reselling: If you are interested in re-selling LEIs to your client base LEI Worldwide can set you up with the architecture to do so on your own website or to do so on the RapidLEI platform.
To find out more simply contact firstname.lastname@example.org
Article by: TechCompanyNews.com
If you are are currently managing or own a fund or a trust, you will more than likely be required to obtain a Legal Entity Identifier (LEI).
A Legal Entity Identifier (LEI) is a 20 digit code that is unique to a legal entity and provides basic information about the entity such as name, address and entity type e.g Limited Company. We explore this further in our recent post What is the Legal Entity Identifier?
LEIs are required by any legal entity that is involved with financial transactions or operating within today's financial system. This applies in particular with regard the EU and the US. There are a number of mandates currently in existence which state "no LEI, no trade" meaning both reporting parties and traders require an LEI such as Mifid II. To see a comprehensive outline of the regulatory use of the LEI please see our recent post on the matter.
Funds and Trusts are examples of legal entities which generally require an LEI for reporting and regulatory purposes.
LEIs for Funds
LEIs for Trusts
When it comes to applying for the LEI you may be requested to provide proof of existence by providing a deed, unless it is a discretionary trust. To find out what other documents may be requested please see our guide to LEI documentation here.
In order to apply for a Legal Entity Identifier please click here: Register New LEI
If you are transacting in the global financial system, you will more than likely be required to obtain a Legal Entity Identifier (LEI).
Applying for an LEI number is simple, and can be completed in a matter of minutes regardless of the entity type. Having an LEI is recommended especially in the UK due to the ongoing BREXIT.
Our registration system is connected to the Companies House via our partners at Ubisecure & RapidLEI, meaning you can obtain your LEI in just minutes!
Who needs an LEI in the UK?
How to get an LEI in the UK?
Obtaining a Legal Entity Identifier code is a simple process. The LEI application form only takes a few minutes and any representative of the company may apply on behalf of the entity.
1. Click on the 'Register New LEI' button here or visit the homepage of this website. To begin, fill out your contact details as the applicant. This information will be used to contact you in case any additional information is required.
2. Next, begin filling out the details of the entity which requires an LEI. This will include information such as the address, name of Director or person legally responsible for the entity such as CEO, or Owner.
3. The next section 'Level 2 Data' gives you the opportunity to report parent company information.
For example, if your company is a branch of a larger organisation, or is owned by another company you may have that information appear on the LEI record. However, this is not a legal obligation. If you wish to report a legal parent company, please note that you will be requested to provide evidence of this relationship by way of Consolidated Accounts (i.e an annual report).
You may only report parent information if the parent company consolidates the accounts and the subsidiary is listed there.
4. The final section allows you to upload documentation relevant to your application. When an LEI application is submitted, the data is cross matched with what is on the relevant local companies registry.
If however the company cannot be found, or the data does not match the registry, we may request that you provide supporting documentation. Some good examples include a Companies House extract.
Once the application is submitted, simply choose your preferred payment method and complete the application. LEI Worldwide use our payments provider STRIPE and PayPal. We also offer the ability to complete a bank transfer or swift payment in any currency.
A member of the LEI Worldwide team will review the submission upon submission and you will receive your LEI code within a few hours.
If you have any questions please contact email@example.com
This post provides a brief educational overview of the LEI, its origins, current usage and future speculations. The LEI is currently being adopted globally and quickly becoming the single most important identifier in the global financial ecosystem. The LEI has far reaching benefits, not only increasing transparency in capital markets, but also in banking, KYC processes, client onboarding and even anti-money laundering!
What is a Legal Entity Identifier?
A Legal Entity Identifier (LEI), is a code that is unique to a legal entity such as a Limited Company or Fund. This code consists of a combination of 20 letters and numbers. The LEI is an ISO standard, which is now a legal requirement for many companies within the global financial system.
The LEI offers accurate data about a company by searching for them on the LEI index. A companies LEI record will contain public data such as their name, address, where they are registered, and whether they are a branch, or owned by another 'parent' company.
Why is the LEI so important?
Previously it was very difficult to find out about a counterparty if they had no digital presence. This became problematic in the global financial crisis a decade ago.
The lack of transparency put financial institutions in a vulnerable position as vast numbers of entities and funds were unidentifiable. Also, this created complications relating to risk assessment and transparency.
The G20 launched the LEI system in 2011 in order to ensure this would never happen again. The idea was to create a digital database, of all legal entities which was easily accessible, accurate and up to date. One centralized source of information, that contains vast amounts of attainable, high quality data.
Where do LEI numbers come from?
After the G20 formed the concept of the LEI, the Financial Stability Board (FSB) appointed a new overseeing body to implement it. This organisation is known as the Global Legal Entity Identifier Foundation (GLEIF). GLEIF were given the role of accrediting and monitoring financial institutions with the ability to issue Legal Entity Identifiers. These institutions, known as Local Operating Units (LOUs) and are the only institutions with the ability to issue LEIs.
LOUs may issue LEIs themselves or partner with various Registration Agents who help facilitate mass adoption to the LEI by providing channels through which legal entities can easily obtain an LEI code. This makes the LEI very easy to obtain, and promotes healthy competition between service providers.
Who needs an LEI?
LEIs are required by any legal entity who is involved with financial transactions or operating within todays global financial ecosystem. There are a number of mandates currently in existence which state "no LEI, no trade" meaning both reporting parties and traders require an LEI. The LEI is mandated by a number of EU directives such as EMIR , MiFIR & MIFID II. The US also have similar requirements such as the Dodd Frank Act, the OFR, the Federal Reserve and the Securities & Exchange commission (SEC).
To see a list of laws in your country visit: https://www.gleif.org/en/lei-solutions/regulatory-use-of-the-lei
Given that the LEI is becoming more popular, and even more benefits are being realised such as streamlining banking processes and making them more efficient, you will probably end up requiring an LEI in the not so distant future if you don't already.
What benefits are there to having an LEI?
Your international recognition and trading credibility is increased immediately. Investors, customers and potential stakeholders can locate your essential data in real time. Likewise, you can benefit from the added layer of security that comes from knowing exactly who you are dealing with.
How to get an LEI
Wether you are a financial institution acting on behalf of your clients, or require an LEI for your personal company you can obtain an LEI at www.lei-worldwide.com or by clicking the register button below.
The process is very simple and if you require any advice, please do not hesitate to get in touch with our support team who can talk you through the process, and recommend LEI solutions specific to your needs. In order to contact out team of experienced professionals please click the Contact button below.