When the revised Markets in Financial Instruments Directive (MiFID II) comes into effect from January 2018, all entities trading with European counterparties across all asset classes will be obliged to obtain legal entity identifiers (LEIs). It is quite simple: from January 2018: no LEI no deal.
Global Legal Entity Identifier Foundation
Established by the Financial Stability Board in June 2014, the Global Legal Entity Identifier Foundation is tasked to support the implementation and use of the Legal Entity Identifier (LEI). The foundation is backed and overseen by the LEI Regulatory Oversight Committee, representing public authorities from around the globe that have come together to jointly drive forward transparency within the global financial markets.
GLEIF is a supra-national not-for-profit organization making available the only global online source that provides open, standardized and high quality legal entity reference data. GLEIF is, by its statutes, agnostic to any particular commercial or political interests. GLEIF manages a network of partners, the LEI issuing organizations, to provide trusted services and open, reliable data for unique legal entity identification worldwide.
GLEIF services ensure the operational integrity of the Global LEI System and facilitate making the LEI a broad public good. As a result, the LEI remains the industry standard best suited to providing open and reliable data for unique legal entity identification management. It provides:
- Accreditation of LEI issuers
- Access to the complete global LEI data pool is free of charge to users
- Data quality management
- Commitment to open data principles: GLEIF has endorsed the International Open Data Charter, which aims to foster greater coherence and collaboration to promote the increased adoption and implementation of shared open data principles, standards and good practice across sectors around the world.
Getting an LEI
Obtaining a Legal Entity Identifier (LEI) is easy. Simply contact your preferred business partner from the list of LEI issuing organizations - see. LEI issuers – also referred to as Local Operating Units (LOUs) – supply registration, renewal and other services, and act as the primary interface for legal entities wishing to obtain an LEI. A legal entity is not limited to using an LEI issuer in its own country; instead, it can use the registration services of any LOU that is accredited and qualified to validate LEI registrations within its authorized jurisdiction(s).
The LEI connects to key reference information that enables clear and unique identification of legal entities participating in financial transactions. Through self-registration, the registering legal entity must supply accurate reference data. The LEI issuing organization must then verify the reference data with local authoritative sources – a national Business Register, for example – and issue an LEI compliant with the LEI standard.
(CTMfile gratefully acknowledge that much of the material above was taken from the GLEIF web-site. Source & Copyright©2017 - Global Legal Entity Identifier Foundation)
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