All You Need To Know About Global LEI system

15 Mar All You Need To Know About Global LEI system

What is an LEI

The Legal Entity Identifier (LEI) is the International ISO standard 17442. It is a 20-character, alpha-numeric code, to uniquely identify legally distinct entities that engage in financial transactions.

LEIs are identification codes that enable consistent and precise identification of all legal entities that participate in financial transactions. The Legal Entity Identifier (LEI)  enables a legal party in a financial transaction to be identified precisely. The LEI links back to a data set of critical information about the transacting entity, which could also include information about the latest ownership of the company.

What is the Global Legal Entity Identifier (LEI) System

The Global Legal Entity Identifier (LEI) System is a federated system including Local Operating Units (LOUs) under contract to the Global Legal Entity Identifier Foundation (GLEIF). The end users and the other partners collaborating with or supporting GLEIF through an individual agreement can access the LEI Repository via an open data license.

The LEI Regulatory Oversight Committee carries out the regulatory oversight of the Global LEI System.

To fulfill the G20 request regarding LEI, the FSB set-up expert working groups of regulators and industry participants to make recommendations on how to structure a global LEI system. The working groups made proposals and recommendations regarding global governance and oversight, a funding model, a revenue model for self-registration and self-validation, as well as an operating model evolving to a fully federated architecture and a corporate and legal structure for the LEI system itself.

The Global Legal Entity Identifier Foundation (GLEIF) was established in June 2014. It is a not-for-profit organisation created to support the implementation and use of the LEI. GLEIF services ensure the operational integrity of the Global LEI System. GLEIF is overseen by the LEI Regulatory Oversight Committee, which is made up of representatives of public authorities from around the globe.

What is Local operating Units

LEI issuers, also referenced as Local Operating Units (LOUs) are the organisations authorised to issue LEIs to legal entities engaging in financial transactions.

The Global LEI System Operation

The Global LEI System operates in three tiers.

1. LEI Regulatory Oversight committee(LEI ROC)

The Regulatory Oversight Committee (ROC) is a group of 71 public authorities with full membership and 19 observers from more than 50 countries established to coordinate and oversee a worldwide framework of legal entity identification, the Global LEI System. LEI ROC represents public financial market authorities from around the world.

2. Global Legal Entity Identifier Foundation

The Global LEI Foundation was established in June 2014 as a not-for-profit organisation overseen by the ROC to act as the operational arm of the Global LEI System. The Global LEI Foundation was established by the Financial Stability Board as a foundation in Switzerland and is domiciled in Basel (see the Statutes of the GLEIF). The Board of Directors of the foundation held its first formal meeting on 26 June 2014 in Zurich. Ensures the operational integrity of the Global LEI system.

3. Local Operating Units

The Local Operating Unit (LOU) is designated as an LEI issuing organisation.

To determine that the Global LEI System evolves in line with user requirements, GLEIF has established dedicated stakeholder groups which facilitate regular exchange of information with representatives of specific market segments.

The operational integrity of the Global LEI System is ensured through services provided by GLEIF such as the accreditation of LEI issuing organisations. In its role as an accreditation agency, GLEIF evaluates the suitability of organisations seeking to operate as LEI issuers.

Applicant organisations must meet the requirements set out in the Master Agreement, which is the contractual framework governing the relationship between GLEIF and LEI issuing organisations. GLEIF will initially assess and annually verify whether organisations accredited to issue and maintain LEIs consistently meet these requirements with regard to service orientation and quality set out in the Master Agreement.

Implementation of the GLEIF accreditation program is one of many services to assist its partners in the Global LEI System to optimise the quality, reliability, and usability of LEI data.

Note:

At KYCLookup we have the functionality to let you know search the full catalogue of LEIs under one single search, all information within our web-portal is data directly from the GLEIF database.