LEI Code: what it is and how it is required

What is the LEI code, how is it requested and what are the costs for the release? In this article we will explain, in outline, a few important things to know about LEI code. Confused of how to make LEI registration? You’re on the right page!

The obligation introduced by the MiFID 2 directive has been in force for more than a year. Thanks to the LEI code, it is possible to identify the parts of financial transactions worldwide and in all markets and legal systems.

Although it is certainly not new in recent months, many are still wondering what it is and what it is used for. The LEI, Legal Entity Identifier, is a code consisting of 20 alphanumeric characters.

LEI Code: what it is and how it is required
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The LEI code is associated with a series of information that allows you to identify each legal entity. These include the tax code, name, address and data relating to the structure of the company.

Based on the notice published by ESMA and according to the provisions of the MiFID 2 directive and the MIFIR regulation, starting from January 3, 2018 all EU companies are obliged to acquire LEI code.

In a global and complex economic context, it is easy to understand what the LEI is for: through this 20-character code, it is possible to know a series of data relating to the subjects operating in the financial markets and improve risk management.

Not only that: the objective of the Legal Entity Identifier is also to simplify the identification and control procedures for legal entities, as the identification code attributed to the individual entity is valid on an international scale.

It is possible to request it directly or through a delegated intermediary. Let’s see how to do it and what the expected costs are.

 

The LEI code, as has already been anticipated, is the identifier consisting of 20 alphanumeric characters necessary to identify the legal entities that carry out financial operations and transactions.

The code is processed according to ISO 17442: 2012 rules and, starting from January 2018, all legal entities holding securities accounts with financial intermediaries will be obliged to request the LEI identification.

To try to better understand what it is we can say that the LEI code is similar to a tax code. To date, it has been requested by over 500 thousand international legal entities, with a percentage of requests from Italy equal to 9%.

How to request the LEI code

To request it, you must follow the following electronic procedure:

Fill in the request

– Entering personal data (for registered subjects the information is automatically extracted from the Business Register)
– Declaration relating to the corporate structure.
– Digitally sign and send the case
– The information collected is summarized in a file

– Make payment by credit card

These categories of legal entities can request it directly or by delegating an intermediary. In this case it will be necessary to obtain a proxy.