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Legal Entity Identifier
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<h2 id="history">History</h2> <p>During the <a href="/facts/2008_financial_crisis/qw8n1pSN">2008 financial crisis</a>, regulators realised that a single identification code unique to each financial institution was not available worldwide. It means that each country had different code systems to recognize the counterpart corporation of financial transactions. Accordingly, it was impossible to identify the transaction details of individual corporations, identify the counterpart of financial transactions, and calculate the total risk amount. This resulted in difficulties in estimating individual corporation's amount of risk exposure, analyzing risks across the market, and resolving the failing financial institutions. This is one of the factors that made it difficult for the early evolution of the <a href="/facts/2008_financial_crisis/qw8n1pSN">2008 financial crisis</a>.<a class="footnote-ref" id="fnref:3" href="#fn:3"><sup>3</sup></a> </p><p>In response, the LEI system was developed by the 2011 <a href="/facts/G20/pFut6kJQ">G20</a><a class="footnote-ref" id="fnref:4" href="#fn:4"><sup>4</sup></a> in response to this inability of financial institutions to identify organizations uniquely, so that their financial transactions in different national jurisdictions could be fully tracked.<a class="footnote-ref" id="fnref:5" href="#fn:5"><sup>5</sup></a> Currently, the Legal Entity Identifier Regulatory Oversight Committee (LEI ROC), a coalition of financial regulators and central banks across the globe, is encouraging the expansion of the LEI. The U.S. and European countries require corporations to use the legal entity identifier when reporting the details of transactions with over-the-counter derivatives to financial authorities. Today, authorities of 45 jurisdictions mandate the use of LEI code to identify legal entities involved in different financial transactions. </p><p>The first LEIs were issued in December 2012.<a class="footnote-ref" id="fnref:6" href="#fn:6"><sup>6</sup></a> As of 3 January 2018, LEIs are mandatory for all companies who wish to continue trading in securities.<a class="footnote-ref" id="fnref:7" href="#fn:7"><sup>7</sup></a> </p> <h2 id="code-structure">Code structure</h2> <table><tbody><tr><th colspan="20">Structure of LEI codes</th></tr><tr><td>1</td><td>2</td><td>3</td><td>4</td><td>5</td><td>6</td><td>7</td><td>8</td><td>9</td><td>...</td><td>18</td><td>19</td><td>20</td></tr><tr><td colspan="4">LOUcode</td><td colspan="7">Entity-Identification</td><td colspan="2">Check-sum</td></tr><tr><td colspan="13"><a href="/facts/General_Electric/bBm5CzVY">G.E. Financing GmbH</a></td></tr><tr><td colspan="4">5493</td><td colspan="7">0084UKLVMY22DS</td><td colspan="2">16</td></tr><tr><td colspan="13"><a href="/facts/Jaguar_Land_Rover/Fpb9gJdL">Jaguar Land Rover Ltd</a></td></tr><tr><td colspan="4">2138</td><td colspan="7">00WSGIIZCXF1P5</td><td colspan="2">72</td></tr><tr><td colspan="13"><a href="/facts/British_Broadcasting_Corporation/qFateIz8">British Broadcasting Corporation</a></td></tr><tr><td colspan="4">5493</td><td colspan="7">000IBP32UQZ0KL</td><td colspan="2">24</td></tr><tr><td colspan="13"><a href="/facts/Bank_of_Nova_Scotia/WA9rjrbc">Bank of Nova Scotia</a></td></tr><tr><td colspan="4">L3I9</td><td colspan="7">ZG2KFGXZ61BMYR</td><td colspan="2">72</td></tr></tbody></table> <p>The technical specification for LEI is <a href="/facts/ISO/cSITxcGV">ISO</a> 17442.<a class="footnote-ref" id="fnref:8" href="#fn:8"><sup>8</sup></a> An LEI consists of a 20-character <a href="/facts/Alphanumeric/ytA9RSIv">alphanumeric</a> string, with the first four characters identifying the Local Operating Unit (LOU) that issued the LEI. Characters 5 to 18 are the unique alphanumeric string assigned to the organization by the LOU. The final two characters are <a href="/facts/Checksum/AqxQ0I8g">checksum</a> digits,<a class="footnote-ref" id="fnref:9" href="#fn:9"><sup>9</sup></a> calculated using MOD-97-10 as per <a href="/facts/ISO%2fIEC_7064/c0tpfNS6">ISO/IEC 7064</a>. </p><p>Even if the LEI code of an entity follows the technical ISO specification, the LEI code by itself does not provide any valuable information—it is only used to uniquely identify each legal entity. </p> <h2 id="information-contained-in-lei-reference-data-level-1-and-level-2-data">Information contained in LEI reference data (Level 1 and Level 2 data)</h2> <p>The LEI reference data contains basic 'business card'-type information, also referred to a 'Level 1' data. It answers the question 'who is who?'. </p><p>The other part of the reference data, the 'Level 2' data answers the question 'who owns whom?'. If applicable, it will allow identification of direct and ultimate parents of any legal entity. </p> <h2 id="global-operating-system">Global Operating System</h2> Hierarchy of Regulatory Entities<table><tbody><tr><th>Regulatory Entity</th><th>Description</th></tr><tr><td><a href="/facts/G-20/pFut6kJQ">G-20</a></td><td>An international organization consisting twenty major countries (ninety per cent of the world's GDP) comprising seven developed countries (G7), the chair countries of the European Union, and twelve rising nations.</td></tr><tr><td><a href="/facts/Financial_Stability_Board/WXjKxJLQ">Financial Stability Board</a></td><td>An organization founded to enhance the stability of the global financial system and to oversee international finance.</td></tr><tr><td>LEI Regulatory Oversight Committee</td><td>The decision-making organization for LEI Systems under FSB. The participating countries' financial authorities, the central bank, and the IMF are represented as members by international organizations.</td></tr><tr><td>GLEIF Board of Directors</td><td>Global LEI Foundation: Responsible for controlling the LOUs in each region as a practical operating organization within the LEI system.</td></tr><tr><td>LOUs</td><td>Local Operating Units: As the operating organization for issuing and maintaining the LEI code in each region, <a href="https://www.gleif.org/en/about-lei/get-an-lei-find-lei-issuing-organizations">37 LOUs</a> are currently active worldwide.</td></tr></tbody></table> <h2 id="obtaining-a-legal-entity-identifier">Obtaining a Legal Entity Identifier</h2> <p>The Global Legal Entity Identifier Foundation (GLEIF) does not directly issue Legal Entity Identifiers, but instead delegates this responsibility to local operating units (LOUs). These LEI issuers supply different services. Local operating units can have different prices and LEI issuing speed for the registration services they offer. The LEI can be obtained from couple of hours to days or weeks, depending on the service provider. GLEIF is responsible for monitoring LEI data quality and integrity of the LEI system.<a class="footnote-ref" id="fnref:10" href="#fn:10"><sup>10</sup></a><a class="footnote-ref" id="fnref:11" href="#fn:11"><sup>11</sup></a> </p> <h2 id="validity-of-lei">Validity of LEI</h2> <ul><li>The validity period for LEI is one year from the date that the Legal Entity Identifier is registered</li> <li>Annual renewal of LEI is a must for a company or organization that wants to continue to participate in regulated financial transactions</li> <li>Renewal can be done through any accredited LOU and the code remains unchanged even when transferring between different LOUs (local operating units)</li></ul> <h2 id="see-also">See also</h2> <ul><li><a href="/facts/Business_Entity_Identifier/dpdbXEA3">Business Entity Identifier</a> (ISO 9362)</li> <li><a href="/facts/Data_Universal_Numbering_System/UN2ldLST">Data Universal Numbering System</a> (D.U.N.S Number)</li> <li>Authoritative Legal Entity Identifier</li> <li>International Business Registration Number</li> <li><a href="/facts/Reference_data/r5lJzB6M">Reference data</a></li> <li><a href="/facts/Approved_Publication_Arrangement/zulb5TFV">APA</a></li> <li><a href="/facts/FIRDS/enX0e1j4">FIRDS</a></li> <li><a href="/facts/Request_for_quote/YjMGb25E">Request for quote</a></li> <li><a href="/facts/Unique_Entity_Identifier/06fmBI9l">Unique Entity Identifier</a></li></ul> <p>Other formal <i>authority <a href="/facts/Unique_identifier/NMcgc7qX">UID</a></i> in legal context: </p> <ul><li><a href="/facts/Lex_(URN)/a8XUsbAb">Lex (URN)</a> (syntax urn:lex:<jurisdiction>:<authority>)</li> <li><a href="/facts/European_Legislation_Identifier/Gy74wcf1">European Legislation Identifier</a> (ELI)</li> <li><a href="/facts/European_Case_Law_Identifier/6rC9vmGd">European Case Law Identifier</a> (ECLI)</li></ul> <h2 id="external-links">External links</h2> <ul><li><a href="https://www.iso.org/standard/59771.html">Official ISO standard</a></li> <li><a href="https://www.leiroc.org">LEI Regulatory Oversight Committee</a></li> <li><a href="https://www.gleif.org/en/about-lei/get-an-lei-find-lei-issuing-organizations">Get an LEI: Find LEI Issuing Organizations – About LEI – GLEIF</a></li></ul> <h2 id="references">References</h2> <ol> <li id="fn:1"><p>"Introducing the Legal Entity Identifier (LEI) – About LEI – GLEIF". gleif.org. <a href="https://www.gleif.org/en/about-lei/introducing-the-legal-entity-identifier-lei" target="_blank">https://www.gleif.org/en/about-lei/introducing-the-legal-entity-identifier-lei</a> <a href="#fnref:1" class="footnote-back-ref">↩</a></p></li> <li id="fn:2"><p>"Questions and Answers – About LEI – GLEIF". gleif.org. <a href="https://www.gleif.org/en/about-lei/questions-and-answers" target="_blank">https://www.gleif.org/en/about-lei/questions-and-answers</a> <a href="#fnref:2" class="footnote-back-ref">↩</a></p></li> <li id="fn:3"><p>Groenfeldt, Tom (August 24, 2011). "Legal Entity Identifier (LEI) ID Code for Banks and Subs Delayed Until 2012". Forbes. <a href="https://www.forbes.com/sites/tomgroenfeldt/2011/08/24/legal-entity-identifier-lei-id-code-for-banks-and-subs-delayed-until-2012/" target="_blank">https://www.forbes.com/sites/tomgroenfeldt/2011/08/24/legal-entity-identifier-lei-id-code-for-banks-and-subs-delayed-until-2012/</a> <a href="#fnref:3" class="footnote-back-ref">↩</a></p></li> <li id="fn:4"><p>"What is the LEI system?". Open LEIs. Retrieved 26 May 2016. <a href="http://openleis.com/info/about_the_LEI_system" target="_blank">http://openleis.com/info/about_the_LEI_system</a> <a href="#fnref:4" class="footnote-back-ref">↩</a></p></li> <li id="fn:5"><p>"The Legal Entity Identifier (LEI) Is Good News for Financial Technology Developers". Data.gov. 21 May 2014. Archived from the original on 26 May 2016. Retrieved 26 May 2016. <a href="https://web.archive.org/web/20160526193130/https://www.data.gov/consumer/legal-entity-identifier-lei-good-news-financial-technology-developers/" target="_blank">https://web.archive.org/web/20160526193130/https://www.data.gov/consumer/legal-entity-identifier-lei-good-news-financial-technology-developers/</a> <a href="#fnref:5" class="footnote-back-ref">↩</a></p></li> <li id="fn:6"><p>"Legal Entity Identifier Resource Center". Sifma. Retrieved 26 May 2016. <a href="http://www.sifma.org/issues/operations-and-technology/legal-entity-identifier/overview/" target="_blank">http://www.sifma.org/issues/operations-and-technology/legal-entity-identifier/overview/</a> <a href="#fnref:6" class="footnote-back-ref">↩</a></p></li> <li id="fn:7"><p>"UK MiFIR – Legal Entity Identifiers". fca.org.uk. Financial Conduct Authority. December 31, 2020. Retrieved November 25, 2021. <a href="https://www.fca.org.uk/markets/mifid-ii/legal-entity-identifier-lei-update" target="_blank">https://www.fca.org.uk/markets/mifid-ii/legal-entity-identifier-lei-update</a> <a href="#fnref:7" class="footnote-back-ref">↩</a></p></li> <li id="fn:8"><p>"The Legal Entity Identifier (LEI) Is Good News for Financial Technology Developers". Data.gov. 21 May 2014. Archived from the original on 26 May 2016. Retrieved 26 May 2016. <a href="https://web.archive.org/web/20160526193130/https://www.data.gov/consumer/legal-entity-identifier-lei-good-news-financial-technology-developers/" target="_blank">https://web.archive.org/web/20160526193130/https://www.data.gov/consumer/legal-entity-identifier-lei-good-news-financial-technology-developers/</a> <a href="#fnref:8" class="footnote-back-ref">↩</a></p></li> <li id="fn:9"><p>"The Structure of the LEI Code". GLEIF. Retrieved 26 May 2016. <a href="https://www.gleif.org/en/lei-focus/what-is-an-lei/lei-code-structure#" target="_blank">https://www.gleif.org/en/lei-focus/what-is-an-lei/lei-code-structure#</a> <a href="#fnref:9" class="footnote-back-ref">↩</a></p></li> <li id="fn:10"><p>"Introducing the Legal Entity Identifier (LEI) – About LEI – GLEIF". gleif.org. <a href="https://www.gleif.org/en/about-lei/introducing-the-legal-entity-identifier-lei" target="_blank">https://www.gleif.org/en/about-lei/introducing-the-legal-entity-identifier-lei</a> <a href="#fnref:10" class="footnote-back-ref">↩</a></p></li> <li id="fn:11"><p>GLEIF. "How to Get an LEI: Find LEI Issuing Organizations – About LEI – GLEIF". gleif.org. Retrieved 2017-10-18. <a href="https://www.gleif.org/en/about-lei/how-to-get-an-lei-find-lei-issuing-organizations" target="_blank">https://www.gleif.org/en/about-lei/how-to-get-an-lei-find-lei-issuing-organizations</a> <a href="#fnref:11" class="footnote-back-ref">↩</a></p></li> </ol>