LEI (Legal Entity Identifier) is the international 20-character alpha-numeric code of a legal entity. The LEI-code is unique and attributed to a specific company and the same code cannot be attributed to any other company. The LEI code does not replace code issued by the Commercial Register.
From January 3rd, 2018 onwards, the LEI code is required for legal entities that perform transactions with financial instruments traded in the European Economic Area trading venue.
Companies that have been awarded the right to provide investment services (for example banks), must report the transactions made with a legal entity`s securities to the supervisory authority using the customer`s LEI code. If the corporate customer does not have a LEI-code, then the reporting obligation cannot be fulfilled and therefore, such legal entities` transaction orders cannot be carried out.
The LEI code is already being used to identify opposing parties to over-the-counter derivative transactions. From November 01, 2017, only the LEI code can be used to notify of derivative transactions.
The LEI-code can be applied for from a separately authorised body and information is available on the Global Legal Entity Identifier Foundation homepage https://www.gleif.org. The corporate customer can choose between all the organisations that issue the LEI- code. Here are a few examples of organisations issuing LEI-s:
We recommend reviewing the terms and conditions of several LEI code issuers to learn more about each organisation`s rules for issuing the LEI code and expected costs.
The bank cannot order the LEI code on behalf of the customer or mediate the order.
The LEI code is issued for a fee and an annual maintenance fee applies. We recommend considering the specific organisation`s rules for issuing the LEI code and associated costs when choosing the issuer. Payment of the annual maintenance fee guarantees the validity of the LEI code.
The Bank must require all information from a legal entity necessary for submitting information about transactions to the supervisory authority. The LEI code is such information.
As long as no new transactions with financial instruments are performed, the LEI code is unnecessary, but it is required for new transactions starting for 3rd of January 2018.
If a corporate customer does not provide all necessary information to perform a securities` transaction, including the LEI code, then it is not possible for the Bank to fulfil the reporting obligation that arises from legislation. In such a case, it will not be possible to carry out such legal entity`s transaction orders (with instruments indicated in chapter 3) from January 3rd, 2018.
The bank will check whether the code exists before accepting a transaction order.
To make sure financial transactions can be performed without interruptions, please notify the Bank about your LEI code in advance via e-mail address email@example.com.
If you have additional questions regarding adoption of the LEI code, then please contact our Call Centre at +372 628 3300.