The Legal Entity Identifier (LEI) is a 20-character, alpha-numeric code based on the ISO 17442 commonplace developed by the International Organization for Standardization (ISO). It connects to key reference info that enables clear and distinctive identification of legal entities participating in monetary transactions. Each LEI accommodates information about an entity’s ownership structure and thus solutions the questions of ‘who’s who’ and ‘who owns whom’. Simply put, the publicly available LEI data pool could be regarded as a world directory, which vastly enhances transparency in the global marketplace.
The Financial Stability Board (FSB) has reiterated that global LEI adoption underpins “a number of monetary stability goals” corresponding to improved risk administration in companies as well as better assessment of micro and macro prudential risks. As a result, it promotes market integrity while containing market abuse and monetary fraud. Final however not least, LEI rollout “supports higher quality and accuracy of financial information general”.
The publicly available LEI information pool is a novel key to standardized information on authorized entities globally. The information is registered and regularly verified according to protocols and procedures established by the LEI Regulatory Oversight Committee.
In cooperation with its partners within the Global LEI System, the Global Legal Entity Identifier Foundation (GLEIF) continues to focus on additional optimizing the standard, reliability and value of LEI knowledge, empowering market members to profit from the wealth of information available with the LEI population.
The drivers of the LEI initiative, i.e. the Group of 20, the FSB and lots of regulators all over the world, have emphasized the necessity to make the LEI a broad public good. The Global LEI Index, made available by GLEIF, tremendously contributes to assembly this objective. It places the entire LEI knowledge on the disposal of any interested party, conveniently and free of charge.
The benefits for the broader enterprise neighborhood to be generated with the Global LEI Index develop in line with the rate of LEI adoption. To maximise the advantages of entity identification across monetary markets and beyond, corporations are therefore encouraged to engage within the process and get their own LEI. Acquiring an LEI is easy. Registrants merely contact their choosered enterprise companion from the list of LEI issuing organizations available on the GLEIF website.