How to get an LEI in the USAHow to obtain an Legal Entity Identifier in the United States of AmericaIf you are transacting in the global financial system, you will more than likely be required to obtain a Legal Entity Identifier (LEI).
Whether your company is based in the United States, or registered in another destination like Panama or BVI, you can obtain an LEI quite easily regardless of its location. 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 USA due to the multiple mandates requiring the LEI for trading purposes. |
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Legal Entity Identifiers in the USA
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?
Who needs an LEI in America?
The Mifid II directive was introduced for European entities that trade in securities. The use of the LEI is similarly required by US entities when they are trading within the EU. The LEI is not a mandatory requirement in the US just yet, but it is becoming increasingly more popular in an ever changing world of financial compliance.
The CEA (Commodity Exchange Act, 2012) requires the LEI for reporting purposes since 2012. However, currently the Dodd-Frank Act requires LEI to be reported for certain transactions, along with The CFCT, NAIC, FED AND SEC(Securities Exchange Act). Most recently, being introduced in 2020 in the US is the FERC (Federal Energy regulatory Commission) which will require the LEI for data collection purposes.
More regulations are expected to be introduced to the US markets as regulators wish to see more information about who is trading and who are their counterparties within the financial markets.
The CEA (Commodity Exchange Act, 2012) requires the LEI for reporting purposes since 2012. However, currently the Dodd-Frank Act requires LEI to be reported for certain transactions, along with The CFCT, NAIC, FED AND SEC(Securities Exchange Act). Most recently, being introduced in 2020 in the US is the FERC (Federal Energy regulatory Commission) which will require the LEI for data collection purposes.
More regulations are expected to be introduced to the US markets as regulators wish to see more information about who is trading and who are their counterparties within the financial markets.
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If you are an LLC or Sole Trader in The United States, you may not need an LEI by law yet. If you are engaged in international activity it is a good idea to have an LEI before you need one as it is quickly being adopted as a global standard.
If you are in financial services you will be required to legally register your entity for an LEI in order to fulfil your reporting obligations. To find out if you fall into this category and require an LEI please see our post discussing Who Needs an LEI? Offshore holding companies owned by US entities will also have to obtain an LEI in a global effort to bring transparency to the offshore financial ecosystem. |
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However, more entities such as Limited Companies and Sole Traders are turning to the LEI even though it is not required. This is because there are many benefits associated with having an LEI. It provides you with an instant credibility boost, and an internationally recognised identity card. You can also benefit from the added layer of identity security and prevent any such related errors.
How to get a Legal Entity Identifier in the USA
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.
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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.
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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.
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.
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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 Certificate of Incumbency, Register of Directors, or a registry extract.
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 Certificate of Incumbency, Register of Directors, or a registry 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 including US Dollars.
A member of the LEI Worldwide team will review the submission upon completion and you will receive your LEI code within a few hours.
If you have any questions please contact info@lei-worldwide.com
A member of the LEI Worldwide team will review the submission upon completion and you will receive your LEI code within a few hours.
If you have any questions please contact info@lei-worldwide.com
To apply for your own LEI or on behalf of a legal entity, please select the option from the buttons below.
