Easy and secure access to the Legal Entity Identifier (LEI)

GLEIS is a federal, international system of LEI issuing authorities that is managed by a central unit - the Global LEI Foundation (GLEIF) - in the form of a foundation and monitored by a superordinate regulator.

The supervision of the system is undertaken by the LEI Regulatory Oversight Committee (LEI-ROC), in which the envoys of the national finance market Financial Markets Authority (FMA) are represented.

The GLEIF is an instrument of the GLEIS and was initially established in the form of a foundation. It oversees the procedural interrelationship between the Local Operating Units (LOUs) - i.e. LEI issuing authorities - and itself or the LEI-ROC.

The LOUs are the national LEI issuing authorities. They securely identify and authenticate entities that request and wish to use LEIs.

The global financial crisis of 2008 revealed that financial markets had insufficient transparency and safeguards. The G20 countries thus proposed the introduction of a global identification system that was realised in the form of the LEI system by the Financial Stability Board (FSB), the members of which are representatives of the corresponding financial conduct authorities.

The FSB established the Global LEI Foundation (GLEIF). This accredited LEIReg as an official LEI issuing agency in 2017 and is, together with the LEI Regulatory Oversight Committee (LEIROC), responsible for the supranational monitoring of the various LEI issuing agencies.

Per MiFID II, each independent legal entity requiring unrestricted access to financial markets has been legally obligated, since January 2018, to identify itself in the form of an LEI. Only once they have been issued with an LEI are they permitted to deal in securities and derivatives. This definitive entity identification system is designed to prevent malpractice, such as money laundering and market abuse, in connection with international financial transactions.

For more information, click here to view a short tutorial on the subject of the LEI system.

Generally speaking your LEI does not have a fixed term and on initial issue will be valid for 12 months.

Subsequently, the authentication data will need to be validated or updated by the owner of the LEI on an annual basis. The validity of the LEI will then be extended for a further 12 months.

The exact date of the next renewal of your LEI can be checked on the LEIReg portal under MY DATA or LEIs/Data Management. The renewal date can also be checked via the Search section by searching for your corresponding LEI number and by clicking on your company name. Here you will find the indication "Next renewal", which will show you the relevant information.

In Germany, Bundesanzeiger Verlag GmbH has been operating its own issuing office, the so-called LEIReg, since January 2014 and issues and manages LEIs worldwide. GLEIF already accredited LEIReg as an official LEI issuing office in 2017. LEIReg sees itself not only as an issuing body, but also as a competent partner and LEI expert and is in active contact with its customers. It focuses on simplifying the processes around LEI application, administration and renewal and on making them resource-saving for both the non-financial and the financial counterparty. In this regard, LEIReg successfully cooperates with both national and international financial institutions and offers customized solutions for companies in Germany, Austria, Switzerland, Luxembourg, Liechtenstein and other countries.

At present, all organisations that deal in securities and derivatives require an LEI in order to comply with the stipulations of the European Market Infrastructure Regulation (EMIR) and the Markets in Financial Instruments Regulation/Directive (MiFIR, MiFID II).
Per Art. 9 of the EU rules on OTC derivatives contracts, central counterparties and trade repositories (EMIR), an LEI has been required since 1 November 2017 for the purpose of identification when reporting.
Since 3 January 2018, it has also been necessary per Art. 26 of the MiFIR and MiFID II for those involved in notifiable transactions to hold an active LEI for identification purposes.

There is a mandatory requirement for an LEI by transaction registers. With the regulation of international financial markets in view, it seems likely that many other authorities and institutions throughout the world will in future require identification by means of an LEI.

The following when acting as counterparties in financial transactions are at present required to apply for an LEI:

• Banks and credit institutions
• Insurance companies
• Securities services companies
• Investment funds/capital management companies

Under the SFTR (Securities Financing Transactions Regulation) non-financial counterparties ‒ in other words, all businesses that are active in the real economy ‒ may also, since 13 July 2021, require an LEI.
Private persons and legally dependent business units do not need an LEI. Special rules may apply to natural persons who undertake business transactions.

For more information on when natural persons may require an LEI, see “LEIs for natural persons undertaking business transactions”.