The Authorized legal entity identifier Identifier (LEI) is a 20-character, alpha-numeric code based mostly on the ISO 17442 commonplace developed by the International Organization for Standardization (ISO). It connects to key reference info that enables clear and unique identification of authorized entities taking part in financial transactions. Every LEI comprises details about an entity’s ownership structure and thus answers the questions of ‘who is who’ and ‘who owns whom’. Merely put, the publicly available LEI knowledge pool can be considered a global directory, which greatly enhances transparency in the international marketplace.
The Financial Stability Board (FSB) has reiterated that world LEI adoption underpins “a number of monetary stability targets” such as improved risk administration in corporations as well as higher evaluation of micro and macro prudential risks. Consequently, it promotes market integrity while containing market abuse and monetary fraud. Final but not least, LEI rollout “helps higher high quality and accuracy of monetary data general”.
The publicly available LEI knowledge pool is a singular key to standardized info on authorized entities globally. The information is registered and usually verified according to protocols and procedures established by the LEI Regulatory Oversight Committee.
In cooperation with its partners within the Global LEI System, the Global Authorized Entity Identifier Foundation (GLEIF) continues to deal with further optimizing the standard, reliability and value of LEI information, empowering market members to benefit from the wealth of information available with the LEI population.
The drivers of the LEI initiative, i.e. the Group of 20, the FSB and many regulators world wide, have emphasised 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 places the complete LEI data on the disposal of any interested party, conveniently and free of charge.
The benefits for the broader business neighborhood to be generated with the Global LEI Index grow in line with the rate of LEI adoption. To maximise the benefits of entity identification throughout monetary markets and past, corporations are therefore encouraged to engage in the process and get their own LEI. Acquiring an LEI is easy. Registrants simply contact their preferred enterprise partner from the list of LEI issuing organizations available on the GLEIF website.