Legal Entity Identifiers – Why, What, When and How Much?

stocks on ipad-small

Legal Entity Identifier or LEI were introduced following the global financial crisis in 2008 so that all participants in the financial system would be identifiable to facilitate monitoring of worldwide financial transactions. A LEI is a unique 20-digit alphanumeric code which is specific to legal entities including investment firms, corporations, charities and Trusts.

Effective 3 January 2018, legal entities will be required to hold a LEI if transacting reportable instruments. Reportable instruments include:

  • Shares
  • Exchange Traded Funds – ETFs
  • Venture Capital Trusts – VCTs
  • Warrants
  • Gilts
  • Corporate Bonds
  • Structured Products

Bare Trusts are currently exempt from acquiring a LEI.

Natural persons are not required to hold a LEI although may be asked by Platform Providers to provide National Insurance, Passport Numbers and details of nationality (or dual nationality) to transact investments if the information has not been recorded.

LEIs must be obtained via an LEI issuer that has been accredited by the Global Legal Entity Identifier Foundation (GLEIF) or an entity endorsed by the LEI Regulatory Oversight Committee (LEI ROC). In the UK the designated LEI issuer is the London Stock Exchange (LSE) https://www.lseg.com/LEI

The legal entity will provide to the designated LEI issuer the following information: Official name of the legal entity, Country of formation, legal form of the entity, current registered address and reference number of the legal entity e.g. company registration number. Supporting documentation may be submitted, including Articles of Incorporation, Trust Deed etc.

Registration does not come free of charge. The initial cost per LEI is £115 + VAT with annual renewal fees of £70 + VAT. Fee savings can be made if you batch requests (10) however this generally only reduces the initial fee by £25 per request.

It is anticipated that the expected volume of LEI requests during January 2018 could slow down the issue of LEI codes. Therefore we recommend that any affected legal entities register for a LEI code without delay.

In summary, act now and consider if you need to obtain a LEI code for your clients otherwise after 3 January 2018 you will not be able to buy or sell shares or ETFs.

This entry was posted in Investments. Bookmark the permalink. Both comments and trackbacks are currently closed.
  • Client Testimonials

    I’m really impressed by how responsive you have all been to get this through against such a tight timescale.
    On behalf of Walk & Talk Group, I would like to thank you for the most informative, enjoyable and appropriate presentation you gave. Members found the session of great value and very useful.
    Whilst my client’s situation is obviously very complicated, you made it very straight forward – quite an art!
    I just want to thank you and your team so very much for all you do for me throughout the year. It is a real comfort to know that my investments are in such capable hands. I literally couldn’t do it on my own.
    Thank you for your visit today. We enjoyed meeting you and found you to be very thorough and knowledgeable. As a result, we now have a positive outlook concerning the future of our finances
    With great thanks for all your reassuring attention over the last year. It means more to me than I can express in a few words.
    We are both very grateful for the time you spent with us in explaining various options. We certainly feel we now both have a much better understanding of our situation & the decisions which we need to consider moving forward.
    Before I chose Gresham I spoke to a number of IFA’s but none of them gave me the same confidence I had when I spoke to Morven. Everything, both written and spoken, is explained in an easy to understand way. All my pensions have been dealt with extremely efficiently and I am very happy with the service I have received from everyone at Gresham.
    Just a big thank you for all you have done for our family. We do appreciate it.
    Thanks again for your advice, you have given me the kick I needed to take control and I’m very grateful for that.
  • Twitter

Main Menu