Today, companies use LEI codes to identify legal entities around the world. If a company is unsure whether it is conducting a financial transaction with another company, it can use the LEI database to improve transparency and better understand where its partner is coming from, who its parent companies are, and ultimately minimize risk and increase security. When searching for LEI numbers, the information contained in a legal entity identifier is exposed. It can be used to check the validity of an LEI number or to ensure that all information about a company is up to date. During the 2007-09 financial crisis, companies, regulators and policymakers struggled to quickly track the risks and links between Lehman Brothers and other financial firms, highlighting the need for a globally recognized identifier for legal entities. In this context, “legal persons” are corporations, corporations, partnerships, trusts, governments and other types of entities with “legal personality” (sometimes including sole proprietorships and sometimes even natural persons “acting in a professional capacity”), but not “natural persons” (i.e. individuals). Level 1 data includes legal name, jurisdiction, registered ID, legal address and registered office address. In addition, Level 1 data contains the details of the registration – the date of initial registration, the date of the next renewal and the LOU (Local Business Unit) of management.

More importantly, the status of the LEI code is also described. To use the LEI code, the status must be issued. The publicly accessible LEI database is a unique key to obtaining standardized information on legal entities worldwide. Data are recorded and regularly reviewed in accordance with protocols and procedures established by the Regulatory Oversight Committee. An LEI code search provides important information based on the ownership structure of the company. As such, it can be used to determine “who is who” and “who belongs to whom.” Thus, an LEI search essentially gives you access to a global directory of participants that exists in the financial market. To execute the Dodd-Frank mandate, the DRAO led the development and deployment of the Global Legal Entity Identification System (LEI). The goal was to help map connections in the financial system and make data cleansing, aggregation, and reporting easier and more cost-effective for businesses and regulators. A Legal Entity Identifier (LEI) is a unique 20-digit alphanumeric code used to identify legal entities around the world. The code is based on the ISO 17442 standard developed by the International Organization for Standardization (ISO). LEI codes help firms and regulators identify parties involved in financial transactions, with the aim of improving transparency in the global marketplace.

The purpose of the LEI Code is to increase the transparency of financial transactions and reporting tasks. The use of LEIs is mandatory under a number of European Union regulations and directives and, from 3 January 2018, for all legal entities wishing to trade in securities or derivatives of any kind on European financial markets (e.g. shares, bonds; ETFs, currency futures, swaps, interest rate swaps, etc.) must register for an LEI. Now, you need to understand everything that a legal entity ID search can discover and what it is for. As you can see, there are many advantages to conducting such research. This can help reduce the risk often associated with financial transactions or help a company calculate an established risk. Alternatively, you could simply be an important member of the financial industry. If this is the case, you must ensure that the information provided by a legal entity identifier is accurate and valid. Do you need a legal entity identifier? It is important to note that these are not issued directly by the Global Legal Entity Identifier Foundation. Instead, responsibility for deployment is transferred to local business units or LOUs or LEI registrars such as the LEI Registry. Through an LEI issuer, you can access a number of different services.

The most common choice for legal entities is one-year registration. After applying for an LEI, the number is assigned and can be made available to other legal entities in financial transactions. Alternatively, partners and financial institutions can search by business name to find the LEI code and associated information. It is possible to perform an LEI number search based on either the company name or the LEI number. Once used, access to the search tool automatically displays all LEI information accessible through the database. It is also possible to filter the results of a legal entity identifier search by country. This should ensure that there are fewer results to study. The financial crisis has highlighted the need for greater transparency and regulation in financial markets. Regulators around the world face the challenge of conducting systemic risk analysis to understand the overall risks of companies and their counterparties across asset classes and markets.

The precise and precise identification of legal entities involved in financial transactions is therefore crucial for both financial institutions and regulators. ISO 17442 defines a set of attributes or reference data for legal entities, which are the main identifiers. The minimum reference data that must be provided for each LEI code is referred to as Level 1 data. The legal entity identifier is the international standard ISO 17442. LEIs are identification codes that allow consistent and accurate identification of all legal entities involved in financial transactions, including non-financial institutions. They make it possible to accurately identify a legal party to a financial transaction. It is linked to a record of critical information about the transaction unit, which can also include information about the final ownership of the entity. LEI`s search function is extremely easy to use and works even if the exact LEI code is not known for another legal entity. For example, a partial LEI code can be entered and the search function automatically suggests potential results. Alternatively, the name of the legal entity may be entered.

This also has an autosuggest feature that makes it easy to find the right entities. You may also be interested in taking on an LEI data challenge. An LEI data challenge always starts with finding a legal entity identifier. This challenge relates to the referential integrity of LEI records and the completeness and accuracy of the data involved. It is also used to solve the problem of duplicate entries or issues with quick response. According to GLEIF, Level 1 data is used to answer the question “who is who”. The data includes the name of the legal entity as registered in the commercial registers, the country of incorporation, the registered legal and principal address as well as the date of the first allocation of the LEI, the date of the last update of the LEI data and, if applicable, the expiry date. Are you interested in an LEI number lookup? It`s easy to get started with the solution available on our website.