The purpose of the system behind LEI codes is to create a clear and unique identification of legal entities that participate in financial transactions. At Global FinReg, we ensure that our customers' LEI data is maintained in real-time so our customers do not experience disruptions in relation to the activities that require a valid LEI code.
If your LEI code has expired, you must renew it so we may update your LEI data. Apart from the fact that LEI codes help the authorities monitor the markets and assess risks, they are also used by companies worldwide. Among other things, LEI codes help reduce counterparty risks and ensure operational efficiency. For this purpose, you will typically use the official database at GLEIF to find companies with an LEI code.
You can read more about GLEIF at www.gleif.org.
An LEI code has two levels of data
The entity data that we work with can be divided into two levels.
Level 1 data includes information such as legal name, registered address, country of formation, etc., while level 2 data covers the legal entity’s ownership structure and discloses who owns whom. Information about private individuals is not published, and at Global FinReg, we protect our client's personal information from unauthorized third parties.
LEI data Level 1
Level 1 data is a minimum requirement for an LEI code and include the following information:
- The legal name of the legal entity. It can be a company, an association, a foundation, a grant, etc.
- The official legal address, as well as the headquarters address
- Country of origin of the legal entity
- ELF codes to describe countries and legal forms
- The following important dates:
- Start date of the legal entity
- First LEI registration
- Latest update of the LEI code
- The expiry date after which the LEI code must be renewed
LEI data Level 2
Once we know who is who, the next data level must be uncovered. Level 2 data is about the entity's ownership and ownership structure, i.e., who owns whom. Owner means the legal owner, which is the direct accounting consolidating parent company, as well as the ultimate accounting consolidating parent company.
If the group structure has several links between the ultimate and the direct parent company, these are not publicized. Only the direct parent and the ultimate parent are relevant for the registration of the LEI code. If one of the mentioned parent companies has an LEI code, it will be that LEI code that appears on the registration.
How you know that your LEI data has been registered correctly
When we register a new LEI code, we ensure that we receive the correct data and associated documentation. In several countries, Global FinReg is directly connected to the local corporate register via an API, which means that we automatically retrieve the official data into our database and thus avoid manual errors. This process has two advantages for you: 1) your application is error-free, and 2) you save time because it is not necessary to add additional documentation to your application for an LEI code.
This applies in countries with a publicly available business register, such as e.g., Companies House, where all necessary data is publicly available. We are also connected to corporate registers in Norway, Sweden, Denmark, and Finland.
When you have an LEI code registered with us, we automatically subscribe to your data at your local corporate register, meaning that you don't need to do anything if your data changes. We make sure to update your LEI data in GLEIF, so you will not experience any disturbances or interruptions when trading securities.
If you have an entity without a business number or an entity registered in a country without a publicly available corporate register, you must approve your data once a year to ensure that it is still current. If there are any changes to your data, you must send them to us as soon as possible. We offer unlimited changes to your LEI data, so it doesn’t cost anything to submit changes. Other providers only offer to change your data at the annual renewal of your LEI code.
React immediately if your LEI data is incorrect
If you find that your LEI data is incorrectly registered, there may be various reasons for this. It may be that your LEI code has expired and needs to be renewed to be updated.
When an LEI code has expired, your data will not be updated, but it will be when you initiate a renewal of your LEI code. If your entity is registered without a business number, or in a country without a publicly available corporate register, you must remember to report changes to your data levels to us as soon as possible.
It may also be that you are registered with a provider that does not offer to update your data automatically. If this is the case, it may be relevant for you to move your LEI code to us. You can read more about moving your LEI code here.