LEI
Introducing the Legal Entity Identifier (LEI)
The Legal Entity Identifier (LEI) is a 20-character, alpha-numeric code based on the ISO 17442 standard developed by the International Organization for Standardization (ISO). It connects to key reference information that enables clear and unique identification of legal entities participating in financial transactions and other official interactions. Each LEI contains information about an entity’s ownership structure. In this way, the LEI answers the questions of 'who is who’ and ‘who owns whom’. Simply put, the publicly available LEI data pool is a global directory, which greatly enhances transparency in the global marketplace.
The Financial Stability Board (FSB) has reiterated that global LEI adoption underpins “multiple financial stability objectives” such as improved risk management in firms as well as better assessment of micro and macro prudential risks. As a result, it promotes market integrity while containing market abuse and financial fraud. Last but not least, LEI rollout “supports higher quality and accuracy of financial data overall”.
The publicly available LEI data pool is a unique key to standardized information on legal entities globally. The data is registered and regularly verified according to protocols and procedures established by the Regulatory Oversight Committee.
LEI benefits include:
- Increased transparency and trust between legal entities globally
- Streamlined counterparty due-diligence and KYC processes, facilitating global trade
- Simplified and more efficient client onboarding and lifecycle management
- Harmonized, centralized and supplemented national business registry data, supporting legal entity data consumption and the provision of related services
- Entity relationships are exposed (beneficial owners, parent/child organizations). This both enhances and simplifies regulatory supervision in Anti-Money Laundering (AML), Counter Funding of Terrorism (CFT), and other related activities
- Supports compliance with current and future regulatory requirements
The Global LEI Index is free for all to access. This means anyone anywhere in the world can know if a private or public organization is who it claims to be. This information allows legal entities to fully trust each other, safeguarding all sorts of investment and trade decisions, along with other interactions.
In cooperation with its partners in the Global LEI System, the Global Legal Entity Identifier Foundation (GLEIF) continues to focus on further optimizing the quality, reliability and usability of LEI data, including in automated, digital use-cases, empowering market participants 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 around the world, have emphasized the need 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 data at the disposal of any interested party, conveniently and free of charge.
The benefits of the Global LEI Index to the wider business community and global digital economy grow in line with the rate of LEI adoption. To maximize these benefits , firms are encouraged to engage in the process and get their own LEI. Obtaining an LEI is easy. Registrants simply contact their preferred business partner from the list of LEI issuing organizations available on the GLEIF website.
2009
Speech by JC Trichet CESR calling for international public reference data infrastructure
2010
Publication of Dodd-Frank Act, leading the development and launch of the Global LEI System
US Treasury speaks to EU Commission, opens door for LEI dossier going to FSB
2012
ISO 17442, Part 1 Published
G20 endorses LEI Charter, establishing the ROC and the Global LEI System
Implementation of European Infrastructure Regulation (EMIR)
2013
First Meeting of the Regulatory Oversight Committee (ROC)
CFTC Rule demands LEI – first “CICI”, then “pre-LEIs”.
2014
Global LEI Foundation established under Swiss law
Office set up in Frankfurt
2015
Publication of first concatenated LEI data – Level 1 Data to answer the question of ‘who is who’
Accreditation of first LEI Issuers
2017
FSB takes the lead to prepare a recommendation for a LEI governance framework
Global LEI
Index reaches
1 million records
2020
Founded GLEIF Americas
Decision to develop a digital “verifiable” LEI using verifiable credentials
The People’s Bank of China publishes the 5-Year Roadmap for LEI adoption
FSB cross-border payments roadmap publication
First Validation Agent starts operations
2021
Established Japan Office
Mandate from the Reserve Bank of India (RBI) to use the LEI in cross-border transactions
2022
GLEIF and Trust Over IP Foundation Publish Ecosystem Governance Framework for Digitally Verifiable LEI
Established Singapore branch
vLEI Demo application “GLEIF Annual Report 2021”
GLEIF Rebrand to reflect the evolution to a new strategic direction: Driving voluntary adoption for the LEI across sectors
Qualification of first vLEI Issuer
Global LEI
Index reaches
2 million records
Decision to establish country representation in India
Implementing new ROC policies (Legal Entity Events, Fund Relationships & Government Entities) outlining new LEI data formats, creating more transparency in the global marketplace
2023
Mandate from South Korea’s Financial Services Commission on using LEI in investment account registration for foreign corporate entities
Decision to establish country representation in China
The journey to one global identity behind every business
A decade of excellence. A history of the Global LEI System
Explore the Timeline