An LEI code must be renewed once a year. If an LEI code is not renewed, it expires and is no longer valid. This article gives you answers to why an LEI code needs to be renewed; and what happens if it is not renewed. You will also get answers to how a longer validity period works and how you can get a validity period of up to 5 years, where you do not have to do anything actively yourself during the entire period.
You will get the cheapest LEI code with us if you choose a five-year validity period. You can read more about our prices for ordering, renewing and transferring your LEI code here.
Does an LEI code expire?
An LEI code expires after one year, i.e., 12 months after it’s issued or renewed. The LEI system requires that the company information associated with an LEI code must be current and up-to-date. For example, you cannot renew an LEI code without simultaneously updating your company information. In this way, all global company information is continuously updated and maintained.
Which information needs to be updated?
All registered information about a company must be updated if there is a change to it. It must also be stated when the changes have been registered. It includes the following information:
- Company name
- Company form
- Business status
- Legal address
- New expiry date
- Ownership structure:
- Direct parent company
- Final parent company
Information about the parent company must also be maintained. You can read more about the different levels of data here.
What does it mean that an LEI code expires?
When an LEI code expires, it means that it is no longer active. An LEI code that is not active cannot be used to trade in securities. Your bank or broker cannot approve a transaction, if you don’t have an active LEI code associated with your company.
It’s very important that you ensure that you have an active LEI code, if you want to trade in securities or carry out other types of financial transactions. Otherwise, your bank or broker will have to reject the trade. It is likely to cause a delay in your transaction, if you have to go out and get an active LEI code, before your bank or broker can execute your purchase or sale.
What happens if my LEI code expires?
If your LEI code has expired, it will no longer be authorized for trading in securities. You will typically only discover that your LEI code has expired when you try making a financial transaction and it fails.
At Global FinReg, we take great care of informing our customers when their LEI codes expire. Our customers can also choose a longer validity period of 3 or 5 years, so you don't have to renew the code yourself or update your company information every year. Global FinReg makes sure to renew and update your information for up to 5 years.
How often does an LEI code need to be renewed?
An LEI code has to be renewed once a year. However, most LEI registration agents or LOUs (Local Operating Units) offer longer validity periods of 3 and 5 years.
If you choose a longer validity period, you don't have to remember to renew your LEI code yourself, because your registration agent will do it for you. It is important that you also ensure that your registration agent maintains your company data. Otherwise, you have to register any changes in the company yourself.
Global FinReg automatically updates company information in Denmark, Sweden, Norway, and England from the respective country's company register.
Why does an LEI code need to be renewed?
If you, as a business owner, have an LEI code, you must go in once a year and update the company's information and ensure that it is correct.
When the G20 countries requested The Financial Stability Board (FSB) in 2011 for a global identification system that could help ensure transparency and stability in the financial markets, the solution became the global LEI system.
You can read more about how this led to the creation of the Global Legal Entity Identifier Foundation (GLEIF), a non-profit organization that supports the implementation and usage of the LEI system. With the LEI system came a global register of all the companies that trade in securities. You can access this register, the Global LEI Index, on GLEIF’s home page.
In addition, a global standard (ISO 17442) is used, which means that the system can be used by banks, investment firms and for anti-money laundering compliance globally. But the system requires that all LEI codes are continuously verified and updated.
You can read more about what the LEI system is used for here.
How do you renew an LEI code?
You renew your LEI code with the LEI provider that administers your code on a daily basis. You usually need to log in to access your company information, then follow your provider's instructions.
If you are already a customer of Global FinReg, you can renew your LEI code by logging in to www.globalfinreg.com and going to "My Page". Here you press "Renew now" under the company that you want to renew. You then select the desired validity period and pay via card, MobilePay, or a bank transfer.
For further information on renewing LEI codes, you can go to “Renew your LEI code”.
If you currently use a provider other than Global FinReg, but would like to have your LEI code moved to Global FinReg, you can read about how to transfer your LEI here.
Do you need help?
You are always welcome to contact our customer services team, if you have any questions or need help renewing or moving your LEI code.