Legal Entity Identifier Regulatory Update - February 2020

18/2/2020

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 considers the LEI a key measure to improving the quality and accuracy of financial data systems for better risk management post the Global Financial Crisis.

It has already mandated the use of the LEI for many transactions in India and India has one of the largest growing issuance rates of LEIs in the world with on average 300 LEIs being issued per week.

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

Securities financing transactions (SFTs) are vehicles which allow investors and firms to use the assets they own, such as bond or shares, to secure funding for their activities.

For example, selling a security and agreeing to repurchase it in the future for the original sum of money plus a return for the use of that money

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

In the United States, individuals, trusts, estates, or nonprofit organisations who own a foreign entity will have a BE-10A filing requirement. The 2020 updated BE-10A will now require the provision of the LEI code.

As an initiative to make the reporting process more efficient, foreign asset reporting requirements will include the use of the LEI.

Like many Americans, if you happen to have investments in the Associated States of the Marshall Islands, Palau, or Micronesia, then you will have a BE-10 filing requirement as these are considered foreign to the U.S, unlike the neighbouring Puerto Rico.

The BE-10A is not a long form but it captures some vital information. Now, in 2020, this form will require you to provide an LEI code.

Obtaining an LEI code is a simple matter and can be done in a few minutes. To obtain a new LEI please contact our team at [email protected] or click here.

LEI Requirement for HMDA Reporting

HMDA data is a large source of publicly available information in the United States. This allows consumers to have visibility in the process ultimately protecting all parties involved.

The Home Mortgage Disclosure Act (HMDA) requires the financial institutions involved to maintain, report and control data regarding the information within mortgage transactions.

This data has multiple functions in society, including showing patterns around lending processes, highlighting trends in the industry and also protect against fraud or discrimination.

If you are a Mortgage Originator in the United States you should by now be familiar with the LEI requirement for HMDA reporting as you will be requested to provide it on the HDMA platform. The HMDA reporting process requests the LEI of the mortgage originator.

Please click here to obtain your LEI or find out more regarding the HMDA and LEI requirements here.

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LEI Worldwide Leads The Way In Global Adoption Of Legal Entity Identifier (LEI) Codes

4/2/2020

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Article: LEI Worldwide Leads The Way In Global Adoption Of Legal Entity Identifier (LEI) Codes

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 an Official GLEIF Registration Agent providing LEI management solutions for fintech companies, government agencies and individual organisations all around the world.

LEI Worldwide facilitate these benefits by providing a support system for entities which require LEIs by working closely with world leading issuers RapidLEI & Ubisecure to provide the best solutions on the market.

Founded in 2017 as one of the first established LEI Registration Agents, LEI Worldwide was originally formed to help organisations meet their regulatory requirements, with an emphasis on the updated Markets in Financial Instruments Directive (MiFID II) & regulation (MiFIR) and to assist entities in the process of obtaining and managing their LEI numbers and supporting the LOU in their role of screening for quality data.

LEI Worldwide are currently managing a large portfolio of client LEIs, including some big name brands. Darragh Hayes, Director at LEI Worldwide stated;

"One of the biggest issues we see facing large companies with a high volume of LEIs is that they are registered all over the place with various LEI issuers.

Different people within their organisation will have access to the accounts and passwords restricting access to manage the LEIs and team members in different branches may not know who initially applied for a particular set of LEIs. This often results in confusion and ultimately a lapsed LEI which can have grave consequences.

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.
We appreciate for you to continue your good work. Thanks!”
– Midhun Ravindranath, Treasurer, Emirates

Q: Why is the LEI important, and why should I get one?

After the financial crisis in 2008, leading institutions were put in a precarious position as vast numbers of legal entities were indistinguishable and had no one which could be relied upon. 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.

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.

“The Legal Entity Identifier has potential to become recognized as the primary global identifier for all organisations and institutions.

The LEI is Connecting organisations, creating global transparency in the financial markets and transforming the way we do business on a global scale.

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 [email protected]

Article by: TechCompanyNews.com

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LEI News & Insights

Legal Entity Identifier Regulatory Update - February 2020

Reserve Bank of India (RBI) LEI Requirements

RBI LEI Deadline - 31st March 2020

LEI Requirement for SFTR Reporting

SFTR LEI Deadline - 13th April 2020

BE-10A LEI Requirement

LEI Requirement for HMDA Reporting

LEI Worldwide Leads The Way In Global Adoption Of Legal Entity Identifier (LEI) Codes

Q: Why is the LEI important, and why should I get one?

Q: How to get a Legal Entity Identifier

LEI Worldwide

Archives

Categories

Facilitating the global allocation of LEI numbers.

Services

Company

Support

LEI News & Insights

Legal Entity Identifier Regulatory Update - February 2020

Reserve Bank of India (RBI) LEI Requirements

RBI LEI Deadline - 31st March 2020

LEI Requirement for SFTR Reporting

SFTR LEI Deadline - 13th April 2020

BE-10A LEI Requirement

LEI Requirement for HMDA Reporting

LEI Worldwide Leads The Way In Global Adoption Of Legal Entity Identifier (LEI) Codes

Q: Why is the LEI important, and why should I get one?

Q: How to get a Legal Entity Identifier

LEI Worldwide

Archives

Categories

​Facilitating the global allocation of LEI numbers.

Services

Company

Support

Facilitating the global allocation of LEI numbers.