The Legal Entity Identifier (LEI) is a 20-character, alpha-numeric code primarily based on the ISO 17442 commonplace developed by the Worldwide Organization for Standardization (ISO). It connects to key reference info that enables clear and unique identification of authorized entities collaborating in financial transactions. Every LEI incorporates details about an entity’s ownership structure and thus solutions the questions of ‘who is who’ and ‘who owns whom’. Simply put, the publicly available LEI knowledge pool can be considered a world directory, which greatly enhances transparency in the global marketplace.
The Monetary Stability Board (FSB) has reiterated that international LEI adoption underpins “a number of monetary stability targets” reminiscent of improved risk administration in firms as well as better assessment of micro and macro prudential risks. Consequently, it promotes market integrity while containing market abuse and monetary fraud. Final however not least, LEI rollout “helps higher high quality and accuracy of financial information total”.
The publicly available LEI information pool is a novel key to standardized information on legal entities globally. The data is registered and recurrently verified according to protocols and procedures established by the LEI Regulatory Oversight Committee.
In cooperation with its companions in the Global LEI System, the Global Authorized Entity Identifier Foundation (GLEIF) continues to focus on further optimizing the quality, reliability and value of LEI data, empowering market individuals to benefit from the wealth of data available with the LEI population.
The drivers of the LEI initiative, i.e. the Group of 20, the FSB and plenty of regulators around the world, have emphasized the necessity to make the LEI a broad public good. The Global LEI Index, made available by GLEIF, greatly contributes to meeting this objective. It puts the complete LEI information on the disposal of any interested party, conveniently and free of charge.
The advantages for the wider enterprise community to be generated with the Global LEI Index develop in keeping with the rate of LEI adoption. To maximize the advantages of entity identification across financial markets and beyond, firms are therefore inspired to have interaction in the process and get their own LEI. Acquiring an LEI is easy. Registrants merely contact their preferred enterprise companion from the list of lei number issuing organizations available on the GLEIF website.