The legal entity identifier (LEI) number is a unique alphanumeric code with 20 characters, and it is assigned to legal entities wishing to engage in financial transactions worldwide.
The Global LEI System was established in 2014. The Global Legal Entity Identifier Foundation (GLEIF), a nonprofit organization, is responsible for implementing the LEI system. The foundation website also maintains a database where users can search for a legal entity and find its LEI data.
The principal purpose of the LEI database is to enhance transparency, and registration is mandatory for institutions transacting business in the European financial markets.
Information that is publicly available on the LEI database includes:
- Legal name of the entity
- Other entity names (if applicable)
- Jurisdiction of Formation
- Registration authority
- Legal address
- Headquarters address
- LEI initial registration date
- LEI next renewal date
- Any parent or subsidiary relationships
The entities that most frequently need an LEI include:
- Financial institutions
- Financial intermediaries
- Banks
- Investment companies
- Hedge fund
- Private equity fund
- Commodity traders
- Insurance companies
- Reinsurance companies
LEI Application
A legal entity must apply through an approved Local Operating Unit (LOU) to obtain an LEI. The GLEI website maintains a list of approved LOUs.