On July 22, 2023, Business Entity Data B.V. (DTCC) decided to close its business, Global Markets Entity Identifier (GMEI), one of the world’ largest LOUs, and consequently exit the LEI code space. GMEI’s client portal was definitively closed on July 27, 2023.
It’s an interesting time in the LEI code space. Consolidations, business mergers, and bankruptcies all raise pertinent questions for LEI holders that we’d like to address in this article.
Why did GMEI exit the LEI code space - and what happens next?
The reasoning behind DTCC’s decision isn’t immediately clear. However, DTCC has partnered with GLEIF (Global Legal Entity Identifier Foundation) to follow their established process for exiting LOUs to ensure all LEIs are transferred to new managing LOUs.
According to GLEIF, the ‘LEI Management Transfer Process will run from July 27, 2023, to August 22, 2023.’ In the table below, you can see the GLEIF-appointed LOUs across markets:
Can I have a different LOU (than the GLEIF-appointed one)?
You can freely transfer your LEI code to an independent registration agent, such as GlobalFinreg. Your chosen LEI provider will take care of everything, including picking an LOU for you. Among other things, we make sure that the LOU is accredited in all your legal jurisdictions.
Why do I have to worry about having an LOU?
The short answer is that you don’t have to worry about your LOU. You just need to find the right LEI provider, also known as a registration agent.
Once you choose an LEI provider based on your preferences, your LEI provider will take care of everything concerning your LEI code. This includes finding the right LOU to work with (read more below, How do I pick the right LEI provider?).
How do I pick the right LEI provider?
There are many things to consider when picking from the list of LEI providers out there, including the following:
- Platform capabilities and convenience
- Security
- Customer service
- Company data updating
- Automatic renewals
- Cost (does the price of my LEI code include all fees and taxes to GLEIF?)
All of these things differ from provider to provider. Most people think of LEI codes as a necessary evil, and for this reason exactly, you should pick a provider that ensures that 1) you’re always in compliance with LEI regulations, and 2) your company data is automatically updated. Ultimately, this means that you don’t have to worry about it yourself.
Last, but not least, it always pays to ask the question: does this LEI provider run a stable and profitable business? In other words, are they likely to stick around for the long term?
You can read more about how to choose a reputable LEI provider here.
I prefer an independent LEI code provider to manage my LEI code - what do I do?
You are free to transfer your LEI code to a different provider at any time. You merely contact your chosen provider, and they will handle the transfer for you. Moving your LEI code to a new provider doesn’t cost you anything.
Please feel free to contact us at Global FinReg, if you have any questions about your LEI code - or if you want help with registering, transferring, or renewing your LEI code.
What are the benefits of an independent LEI code provider?
An independent LEI provider provides a better understanding of the local market, including:
- Automatic lookups from local business registries.
- In-depth understanding of the different company types and how they ought to be registered. For instance, a Danish provider will know the difference between an A/S and an ApS.
- Customer service in the native language, faster turnaround time and better product knowledge.
- Ongoing updating of your company data based on changes made to the local business registries. For instance, if your company changes its address, your provider should update this for you and save you time and hassle by doing so.
What is an LOU?
LOU stands for accredited Local Operating Unit, a GLEIF-approved organization. LOUs have the mandate to register, transfer and renew LEI codes. LOUs spend considerable time on operational processes and data checks. Since their mandate is so big, and LOUs are usually part of much larger companies, like GMEI, they tend to outsource their customer service to a generic customer service center located abroad.
What is NordLEI?
NordLEI is a Swedish LOU. If you prefer to work with an independent LEI provider, please contact us at GlobalFinReg, and we will help you transfer your LEI code(s) to us.
What happens if my current LEI code provider goes bankrupt?
This depends entirely on the LEI provider. If you bought a discounted LEI code for a multiyear period and your provider goes out of business, you might lose out on any of the remaining years that you subscribed for.
GLEIF only renews LEI codes once a year, and it is up to the LEI provider to make sure that your LEI is renewed every year. This is why it is best to choose a trusted LEI provider from the get-go and to steer clear of discount providers.
If you want to know more about this topic, please read our articles about dishonest LEI providers here - and why the cheapest LEI code isn’t the best.