22 Apr What are the LEI renewal cost and the process in the UK
What is LEI
A Legal Entity Identity (LEI) code is a unique 20-character alpha-numeric string which is used to distinctly represent a Legal Entity.
To aid global allocation of LEIs, Local Operating Units (LOUs) have been formed and need to be sponsored by local regulators to assign and maintain LEIs to firms on a cost recovery basis.
Once the LEI is issued it can be used to represent the company in financial transactions or can act as identity assurance in some cases.
London Stock Exchange & LEI
London Stock Exchange is accredited by the Global Legal Entity Identifier Foundation (GLEIF) as an authorized Local Operating Unit (LOU) for the global allocation of Legal Entity Identifiers (LEI).
Based on the agreed principles outlined by the LEI Regulatory Oversight Committee (LEI ROC) and requirements set by the GLEIF, London Stock Exchange issues Legal Entity Identifiers to legal entities.
What is the London Stock Exchange’s role in LEI?
London Stock Exchange has over twenty years of experience as the UK’s National Numbering Agency for ISINs and CFIs and will allocate LEI codes on an individual basis. The codes are issued via UnaVista which is the Group’s hosted matching and reconciliation platform.
What are the benefits of using the London Stock Exchange as an LOU?
Apart from the rich experience, the utilization of the unique UnaVista platform, the service provided by the London Stock exchange provides many advantages.
1. One- stop solution
All LEI data is available in one place in a consolidated file. The user interface provides an advanced look-up service to access all LEI reference data in one database. One is able to view, filter, manipulate and extract data which has been consolidated through a single tool. You can also download the consolidated file of all of the global LEIs.
2. Accuracy and Reliability
The consolidated database ensures all LEI records are cross-referenced before a new LEI is created. Thus avoiding duplication in the database. Following this, entity validation against global sources is carried out so the users can rest assured that the LEI obtained is unique and accurate.
3. Experience
London Stock Exchange has contributed to the development of international standards for the financial services industry for many years. They have also participated in the ISO process for the development and creation of the Legal Entity Identifier. Continued participation in LOU and international standards working groups have made the London Stock Exchange reliable and an entity that has subject matter knowledge.
Why do I have to renew LEI?
Legal Entity Identifier renewal is important. Legal Entity Identifiers (LEI) which are not renewed in time will Lapse. If the status of LEI has Lapsed in the GLEIF database, it reflects on your corporate branding and may prevent you from successfully completing a transaction or reporting in the future.
How soon to Renew your LEI?
One may renew their LEI up to 45 days before the expiration. The main dashboard will show you which LEI’s you should renew and in how many days your LEI is going to expire.
What is the process to renew my LEI?
As your Local Operating Unit (LOU), the London Stock Exchange will send you an email renewal reminder 60 days, 30 days then 7 days before your renewal date. This email will contain a step by step guide on how to submit your renewal. You can submit your LEI for renewal up to 60 days before the renewal date.
In line with the Common Data File Format, the registration section of an LEI data record includes the data element ‘Next Renewal Date’, which states the date by which the LEI registration should be renewed and re-certified by the legal entity. The renewal date, as well as the fee paid by the legal entity to the LEI issuer for performing the re-validation of LEI reference data, is agreed between the legal entity and its LEI issuer.
What is the cost of obtaining an LEI and renewing it annually?
London Stock Exchange will be charging fees on a cost recovery basis. There is an initial allocation cost of £115+vat per LEI.
The annual maintenance cost(i.e. renewal )is £70+vat per LEI. For firms who require a bulk allocation of more than 10 LEIs, there is pricing based on economies of scale.
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