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Can a business invest in stocks?GLEIF’s verifiable LEI issuer qualification programWhat are child entities and how do they relate to other entities?Do I need an LEI when selling shares?Business transparency: How to create an environment of trustAnti Money Laundering (AML) in banking: Everything you need to knowKYC in banking: Why it’s important and how to complyWhat is a parent company and how does it work?How long does it take to get an LEI?ISO 5009 – Identifying organizational rolesISO 17442 – Standard for LEI code structureLegal Entity Identifier (LEI) vs Inland Revenue Department (IRD) in New ZealandWhat documents are required for LEI registration in New Zealand?Who is an LOU in the LEI dimension?GMEI Utility vs LEI RegisterLapsed LEI – Why should you keep your LEI active?Who is an LEI Registration Agent?Are LEIs public?Can an individual have an LEI?Why is an LEI number required?Do LEI numbers need to be renewed?Who needs an LEI number?How much does an LEI number cost?LEI Lookup – Fully dedicated LEI search websiteISIN to LEI mappingMiFID regulation | MiFID II LEIGLEIF | Global Legal Entity Identifier FoundationOpen LEIWho needs an LEI number?LEI for TrustsLegal Entity Identifiers in KYCTrading and investing for beginners: Should I trade through a business entity or as a sole trader?Legal Entity Identifiers in digital certificatesBroad adoption of LEIs could save the global banking sector US $2-4 BillionThe European Market Infrastructure Regulation (EMIR) and Legal Entity Identifiers (LEIs)Adoption of LEI in Payment Messages by the Payments Market Practice Group (PMPG)Can a business invest in stocks?
Yes, a business can invest in stocks to diversify its investments and generate a financial return. There are a few different ways a company can invest in stocks, depending on the business’s legal structure and the investment’s goals. Continue reading...
GLEIF’s verifiable LEI issuer qualification program
GLEIF (the Global Legal Entity Identifier Foundation) has launched its new Verifiable LEI Issuer Qualification Program. This program is designed to help businesses everywhere establish trust with their partners and customers through the use of LEIs (Legal Entity Identifiers). The Verifiable LEI (vLEI) will play a critical role in this process by allowing businesses to automatically verify the identity of their partners and customers. Continue reading...
What are child entities and how do they relate to other entities?
A child entity is a type of entity that is defined in relation to another, specific entity called the parent. Child entities can be thought of as subordinates or dependents of their parents. In some cases, child entities may have their own independent existence, but they cannot exist without their parents. In other cases, child entities are simply a subset of data that is stored alongside the parent entity. In this article, we will discuss the different types of relationships between entities and explain how child entities work within those relationships. Continue reading...
Do I need an LEI when selling shares?
A Legal Entity Identifier (LEI) is a unique code required by any legal entity that invests in financial instruments through a regulated exchange (this includes shares, bonds, collective investment schemes, derivatives, and more). When the legal entity executes a transaction, this identifier is used to identify it. Continue reading...
Business transparency: How to create an environment of trust
Quite simply, you can define business transparency as the act of being open and honest with all stakeholders - employees, customers, suppliers, and the community at large. In this article, we will explore what transparency means for business leaders and how they can create an environment of trust within their organizations. Continue reading...
Anti Money Laundering (AML) in banking: Everything you need to know
Money laundering is the process of disguising the origins of money that has been obtained illegally. Anti Money Laundering (AML) regulations are put in place to prevent banks and other financial institutions from being used to launder money. In this article, we will discuss AML in banking and how it affects financial institutions. We will also provide a detailed overview of the AML process and discuss some common AML compliance issues. Continue reading...
KYC in banking: Why it’s important and how to comply
KYC, or Know Your Customer, sometimes Know Your Client is a critical process in the banking industry. KYC's purpose is to ensure that banks are doing business with legitimate customers and that they are complying with KYC bank regulations. The importance of KYC cannot be overstated - it helps protect both the customer and the bank from fraud and other illegal activities. In this article, we will discuss why KYC is so important and how you can comply with KYC bank regulations. Continue reading...
What is a parent company and how does it work?
A parent company is a company that owns another company. Parent companies can be in charge of the day-to-day operations of their subsidiaries, or they can simply provide financial and managerial support. In most cases, parent companies are larger than their subsidiaries and have a more significant role in the overall operation of the business. Continue reading...
How long does it take to get an LEI?
Depending on how accessible are the local company registries and whether the verification process can be automated, the LEI issuing time could be anywhere between a few minutes to 24 hours. Continue reading...
ISO 5009 – Identifying organizational roles
In 2022 the organization came out with a new standard ISO 5009: to recognize official organizational roles in a business entity with digital IDs, which can be used to authenticate the identity of authorized representatives for meeting the KYC and related regulatory requirements of business transactions. Continue reading...
ISO 17442 – Standard for LEI code structure
The International Organization for Standardization (ISO) is a global, independent, non-governmental standard development organization, composed of representatives from the national standards organizations of member countries. These standards are formulas for doing something- they can be about making products, managing processes, or delivering services - covering a huge range of activities. Continue reading...
Legal Entity Identifier (LEI) vs Inland Revenue Department (IRD) in New Zealand
The Legal Entity Identifier (LEI) is a standard identifier that provides verified data on legal entities and is registered on a centralized system, the Global LEI System. In New Zealand, the Tax Identification Number (TIN) is called Inland Revenue Department (IRD). Continue reading...
What documents are required for LEI registration in New Zealand?
The required documentation when obtaining an LEI varies depending on the entity's country of origin. In New Zealand, when registering for an LEI there are no extra documents required. Continue reading...
Who is an LOU in the LEI dimension?
A Local Operating Unit (LOU) is an authorized organization that issues LEI codes. You'll find a list of official LOUs (or LEI Issuers) on the GLEIF website. LOU-s supply registration, renewal, and other services related to the LEI code. Continue reading...
GMEI Utility vs LEI Register
The Global LEI System is designed to encourage competition between LEI issuers and registrators for the benefit of legal entities seeking to obtain an LEI. Coming up with the price of issuing and maintaining an LEI has therefore been left to the organizations themselves. This explains why some companies charge double the price of their competitors. Continue reading...
Lapsed LEI – Why should you keep your LEI active?
Your Legal Entity Identifier (LEI) must be renewed annually. Failure to renew the LEI will change it from an ACTIVE status into a LAPSED status in the Global LEI System index. A lapsed LEI can cause major inconveniences, as your trades will be blocked and as a financial institution, you even face a risk of non-compliance fines. Continue reading...
Who is an LEI Registration Agent?
An LEI Registration Agent's role is to help legal entities, who are looking to obtain an LEI code. The concept of Registration Agents was introduced by GLEIF to further streamline the issuance of LEIs. A Registration Agent's success is solely determined by their ability to offer competitive prices and by simplifying the LEI registration or renewal process for their clients. Continue reading...
Are LEIs public?
The Global LEI System was developed for a more transparent global financial market. A company's LEI will be public and contain data about the company's registered and trading names; company type; registered address; registration number; parent company information; child company information. You'll be able to access this public database, free of charge through LEI Search. Continue reading...
Can an individual have an LEI?
Individuals, on the other hand, are not yet required to have an LEI. Furthermore, it's impossible to obtain an LEI without a legal entity. To put it simply: in customer transactions, where both the remitter and beneficiary are individuals, LEI will not be needed. Whilst in transactions where either one or both parties are non-individuals, an LEI will be required. Continue reading...
Why is an LEI number required?
A Legal Entity Identifier number or code is required to ensure a more transparent financial market. The initiative was created after the 2008 global financial crisis, with hopes to avoid any future global economic shocks of that severity. The LEI code is now essential for legal entities that operate within today's financial system. A company's LEI record will contain public information, that is accessible through a global database. Continue reading...
Do LEI numbers need to be renewed?
The Global LEI System was created for a more transparent and accurate identification of legal entities that operate within today’s financial system. In order to keep the data relevant and up to date, the LEI numbers need to be renewed annually. Once your deadline passes, the registration defaults to "lapsed" and you won't be able to make any trades until the number has been renewed. Continue reading...
Who needs an LEI number?
LEI is needed by legal entities who take part in financial transactions and who wish to trade in financial markets, such as buying stocks, bonds, or other securities. There are also many regulations (dependant on jurisdictions) that require obtaining an LEI. Continue reading...
How much does an LEI number cost?
The Global LEI System (GLEIS) has been set up in a way where LEI cost can differ among various service providers. Obtaining an LEI number can cost you anywhere between $65 to $200, depending on who you're registering with. Since the number needs to be updated yearly - the costs will start to add up. For this reason, we encourage you to pay close attention to the price and take it as the primary factor when registering an LEI code. Continue reading...
LEI Lookup – Fully dedicated LEI search website
The LEI database, which is managed by the Global Legal Entity Identifier Foundation (GLEIF), is completely transparent and accessible to everyone - regulators, businesses and other entities - regardless if they possess an LEI code themselves. This guarantees transparency between the parties involved in any financial transaction. As the LEI codes are renewed each year, the database can be relied upon to display only up to date information. The LEI Lookup website not only offers information about the LEI code and its uses, but also a comprehensive Search tool, as well as LEI Registration, Transfer and Renewal service. Continue reading...
ISIN to LEI mapping
Within the world of hundreds of thousands companies, there are two primary identifiers used in finance. The first one being The International Securities Identification Number, otherwise known as ISIN, second The Legal Entity Identifier known as an LEI. These identifiers have a lot in common, they're both used to increase transparency and made up of alphanumeric digits with check numbers. Continue reading...
MiFID regulation | MiFID II LEI
MiFID is the Markets in Financial Instruments Directive. Applicable across the European Union since November 2007. Being a cornerstone of the European Union's regulation of financial markets looking to improve their competitiveness by generating a single market for investment services and activities, and to guarantee a high degree of systematised protection for investors in financial instruments. Continue reading...
GLEIF | Global Legal Entity Identifier Foundation
GLEIF is uniquely positioned in the entity identification market, agnostic to any particular political and/or commercial interests. The foundations' overhaul is to ensure the operational integrity of the Global LEI System. GLEIF is the one behind continuous improvement of the information available within, and the quality of, the LEI data pool. Continue reading...
Open LEI
Before the widespread adoption of the open LEI system, there were many inefficient, predominantly proprietary identifiers that, more often than not, provided false or outdated information. These shortcomings were a severe problem, particularly in financial markets, where the regulators, banks or other market participants were unable to access valid information about their counterparties. Continue reading...
Who needs an LEI number?
Who needs an LEI number? LEI is needed by legal entities who take part in financial transactions and who wish to trade in financial markets, such as buying stocks, bonds or other securities. There are also many regulations (dependant on jurisdictions) that require to obtain an LEI. Continue reading...
LEI for Trusts
A Legal Entity Identifier (LEI) is a unique reference code that is required by all legal entities. LEI data is available from a single database that helps to improve global entity identification. This includes companies, charities and also trusts. Without an LEI, an entity will not be able to trade on financial markets in the United Kingdom as the London Stock Exchange requires all legal entities to obtain an LEI. Continue reading...
Legal Entity Identifiers in KYC
KYC is a process of understanding who you do business with and assessing their suitability or risk to your organisation. Banks, insurers, creditors and more are increasingly demanding (thanks to the global drive in KYC regulation) that customers provide due diligence information to ensure they are who they say they are. Continue reading...
Trading and investing for beginners: Should I trade through a business entity or as a sole trader?
If you’ve decided to get into trade or investment in the UK and you’re struggling to figure out how to get set-up, this article provides a good outline of the differences between a business entity account and a sole trader account to help you decide where to get started. Continue reading...
Legal Entity Identifiers in digital certificates
Digital certificates are hugely important in encrypting the internet. Whether it’s for encrypting a website and adding the ‘S’ to HTTPS or it’s encrypting and signing a digital document like a PDF, digital certificates are everywhere. Up until now, they have solved some great security challenges on the internet by encrypting networks and communication channels. However, as we know, encryption is not always enough. Continue reading...
Broad adoption of LEIs could save the global banking sector US $2-4 Billion
The banking industry could save between US $2-4 billion in client onboarding and if more widely adopted they could help the banking industry save between 5-10% globally. This represents a total figure of around $40 billion USD. Continue reading...
The European Market Infrastructure Regulation (EMIR) and Legal Entity Identifiers (LEIs)
The EMIR regulation has mandated EU trade repositories, starting on November the 1st 2017, to reject trade reports without a Legal Entity Identifier or LEI, regardless of whether the reports pertain to EU or non-EU market participants. Continue reading...
Adoption of LEI in Payment Messages by the Payments Market Practice Group (PMPG)
In September, the Payments Market Practice Group or PMPG was set up by SWIFT to bring together payment industry practitioners and define market best practice. They published a paper on the Adoption of LEI in September 2019 and we have decided to bring a short summary of the main points in this post. Continue reading...