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Secure LEI number registration with LEI Register

Posted by : Siddharth Jalan on | Dec 10,2020

Since the introduction of Legal Entity Identifiers, businesses around the world have greatly benefited; transactions have become more transparent, thereby minimizing unscrupulous business deals. The implementation of using LEI began taking effect on January 3rd, 2018, where all the businesses that wanted to conduct various transactions in the European financial market were required to have an active LEI number. To date, several regions including North America, Asia, and Australia, have implemented the use of LEIs.

LEI number registration usually takes a short period; still, the length of the duration tends to vary. It’s because the registration process is highly dependent on the accuracy of the given information. Thus, the LEI onboarding process will take a shorter period for entities that give spot-on information which reduces unnecessary back and forth. Therefore, always ensure you provide the proper information whenever you’re registering or renewing your LEI number.

LEI Application Requirement
Particular documentation is required when registering for an LEI. Nowadays, in almost every jurisdiction, businesses that are operating in the global financial market are required to have a Legal Entity Identifier.

The LEI number is usually a 20-digit number comprising of alpha-numeric characters that provide standard information about an entity. Some of the details available in the number include the name of the business, the type of entity, branches, the location of the headquarters among others. To confirm this information, a cross-reference has to be done with the company registry list. The information on the list will be used to validate the Legal Entity Reference Data.

The next step is providing the relevant paperwork for the business to be listed in the LEI data system. The documentation provided should tally with the information that you'll provide. Examples of certificates that are accepted include articles of association, certificate of incumbency, registry extract, power of attorney, certificate of incorporation, or any other documentation that can be used to confirm the information required for LEI registration. Any person who is acquiring an LEI number on behalf of another company is required to have a Letter of Authorization (LOA) that has the sign of the company authorized signature, who is usually the Director. An LOA is also used in cases where the company wants to change LEI service providers.

Obtaining an LEI for your Business
You can get an LEI from either a certified LEI registration agent or from a Local Operating Unit (LOU). The Local Operating Units are the bodies that have been given the mandate of issuing new LEI numbers as well as their renewal. The LOU works hand in hand with registered agents to facilitate the issuance of LEI.

The Future of LEI
The Legal Entity Identifier system is yet to be fully embraced by the entire globe. It means that different identity systems use various criteria to verify the credentials of businesses. Thus, the LEI system comes up as the most appropriate way of referencing companies since all the data is centralized and universal, making it easier for everyone across the globe to use it. As the world becomes more dynamic, the incorporation of the LEI system into every country will likely happen sooner than most people think. Hence, ensure you acquire an LEI number for your entity.