LEI - Code obtaining procedure

Obtain LEI-code: how is it possible and why is it needed?

Definition of the LEI system

LEI number (Legal Entity Identifier) or a code of  identification of legal entities is assigned to enterprises in accordance with the norms of international standards ISO 17442. LEI code is required to facilitate committing legal and foreign exchange operations, as well as submitting reports when interacting with financial markets. Data of the LEI code are unique, and the name of the enterprise and its main legal characteristic placed in the public domain can be determined by the code.

Identification of legal persons through LEI code was introduced by foreign regulator - Regulatory Oversight Committee. The Committee is a legal international body that sets standards and procedure for assigning LEI codes to the companies. The same regulator has complete control over the legal person’s identification and maintaining a global identifier LEI codes’ storage system. ROC is a committee set up with the support of Financial Stability Board.

Details about the reasons due to which the LEI code has been created and full information on the process of its obtaining and the necessary legal documentation can be clarified through consultations with the experts of the company Law & Trust International. Our experts are ready to answer all relevant questions about the LEI code in chat, by mail, by phone and in the office.

What does the LEI (Legal Entity Identifier) code include?

When assigning LEI code a numeric identifier consisting of 20 numeric symbols shall be granted to the applicant. LEI is indicated without spaces, hyphens and other punctuation marks in all documents, but  LEI code can conditionally be divided into 4 parts:

1. The first four digits of LEI code define the prefix of local operating unit.
2. The following two determine a backup code for identification of the legal entity.
3. The next 12 digits of LEI code stand for individual LEI of the enterprise, which enables to receive information about it in the global system of identification of legal entities.
4. The last two digits of LEI code are checking characters.

It is possible to obtain LEI code only after submitting a written request to the authorized body. The request for LEI should be prepared by legal entity or its authorized representative. After issuing LEI identifier code, the information about it is published on the website of the local unit. Data about the code of identification of legal persons is freely available on LEI-register. It is safe considering that LEI code contains only the data which is allowed according to ISO standards 17442. These include the following: full name of the company, its contact information, legal address of registration, etc.

What are the reasons to obtain the LEI code?

Russian legal entities may apply for a registration request of LEI-code to NSD (National Settlement Depository). The authority plays a major role in the federal market, and as a consequence has access to information on all the companies registered within the territory of the country.  Data on legal entities allows to take a positive decision while considering the application for the issuance of LEI-code and subsequent maintaining it up to date. Among the advantages offered by the use of international identifier LEI code, there are the following:

• Minimum risks when making transactions in the financial market;

• Simplification of the procedure for reporting on all legal transactions;

• Unambiguous verification of all counterparties, issuers and other types of market participants due to LEI code. It enables to keep tracking all the transactions and transfers operatively. 

You will find out how to get LEI code, how to use it, what forms are needed to be filled in and where to submit the application after making an appointment for consultation with Law & Trust specialist.

Our lawyers provide assistance in obtaining universal LEI identifiers, and due to us it is possible to go through the procedure in the shortest possible terms and with minimum financial costs.

Why the LEI-code was introduced?

The project of LEI code identifier was developed by all the countries of the Big Twenty, but the entire world community is interested in LEI. The introduction of uniform standards for all legal entities is made for the purpose to streamline information exchange formats between all participants of the international financial market and bring them to a common method of providing data to LEI register.

After the economic crisis that has began in 2008 and lasted a bit less than a year, there was a need to increase transparency of the policy of each company based on the international market.Availability and accessibility of legal data on the enterprise in the LEI code allows to minimize risks associated with transactions in the financial market, and when detecting unlawful one, regulator and supervisors can quickly apply sanctions or other measures with respect to the violator.

In addition to binding legal verification of all market counterparties after the introduction of a unified identification system through LEI code, it is possible for regulators to evaluate the risks of each transaction. Global GLEIS system is constantly updated, that is why all of the information about the enterprises remains relevant.

The procedure for the implementation of identifier code

In order to obtain LEI code it is necessary to go through several procedures.the experts of our company will provide you an assistance in performing all the important stages. A detailed knowledge of the stage of registration and current legal standards makes it possible to receive identification code of the legal entity in the global system within a short time without the need to failure analysis and re-treatment.

The verification process is carried out both at the level of the Russian market and in the international financial system when making transactions abroad by the counterparty. Introduction of global system is subject to the following stages:

• Activation of local operating units, which are ready to assign a code to a legal entity;

• Creation of the Central Operation Unit, which will provide the ongoing LEI code  relevance and ensure its maintenance in the base of the global system;

• Formation of a single virtual space, which contains the combined data of all local and central units. Global infrastructure is created for the proper performance of the tasks set by the countries of the Great Twenty.

Units are located in many countries around the world that facilitates interaction with legal entities of different nationality. We work with applicants from Russia and other countries of the world.

The procedure for obtaining LEI code

You need to address to the experts of the Law & Trust company. Your application is accepted for processing immediately upon receipt. We provide free of cost consultancy on the use of identifier, as well as on other relevant issues. The preparatory stage includes the collection of the documentation package, and the following are mandatory:

1. Agreement on confidentiality of the whole procedure and subsequent non-disclosure of data.
2. The applicant's application form with personal information about himself/herself and the enterprise.
3. Package of statutory documentation of the company, and attachment of accounting reports and statements from the tax authorities is possible.

Our experts will tell you not only how to receive the LEI code and transmit documentation to the authorized body, but also considerably facilitate the process of examining of the legal acts regarding the use of identifier. Previously, you need to study all the requirements for the contract for accreditation and firm conditions of use of the system of annual verification of global identification of legal entitiesand to fill in all application forms and declarations.

Previously, you need to explore all the the requirements for the contract on accreditation and annual audit of the firm, conditions of use of the global system of identification of legal entities and to fill in all application forms and statements properly.

You can skip these steps and begin the process of obtaining code due to us. All the information needed for further work with the individual number of the legal entity is submitted to the client in summary form that saves time on examining. You can submit a request to receive the LEI code at any time. All channels of communication with the specialists, including email, phone and online-chat on the website are available.