What Is An LEI Search?
LEI number search will reveal the information contained within a Legal Entity Identifier. It can be used to check the validity of an LEI number or ensure that any information held on an entity is up to date.
When completing an LEI search, it is important to note that the identifier is a 20-character code. This was established based on the ISO 17442 standard. It ensures that when an LEI code search is completed that there is a unique and clear identification of any participating entities in a financial transaction.
What Will An LEI Search Reveal?
An LEI code search will reveal crucial information based on the ownership structure of the entity. As such, it can be used to establish ‘who is who’ and ‘who owns whom.’ So, essentially, an LEI search will provide you with access to a global directory of participants that exist within the financial market.
It’s worth noting that there are numerous LEI issuers that exist on a global scale. These act as the main interfaces of an international directory and work to ensure that the identifiers are maintained. The issuers are accredited by the Global Legal Entity Identifier Foundation or GLEIF to provide LEIs.
Ultimately, the LEI search ensures that there is a higher level of transparency within the global market. As well as being registered, any information will be regularly verified. This will occur based on procedures and protocols that are established by the LEI Regulatory Oversight Committee (LEI ROC)
According to the GLEIF, an LEI code search is designed to answer three crucial questions:
- Who is who
- Who owns whom
- Who owns what
The information available from the legal entity number search is typically referred to as ‘level 1’ data. As such, it will answer ‘who is who’
However, in 2016, a document from the LEI ROC laid out a policy designed to collect and reference level 2 data. This would ensure that a legal entity identifier search would also reveal ‘who owns whom’ - which ultimately lead to the LEI search 2.0 tool.
The full information available from an LEI search includes the ownership structure for an entity, the LEI issue and headquarter address. An LEI code search will also reveal the issuance date of the LEI, the modified data, and the potential renewal date as well as the verification status.
Who May Need To Complete An LEI Search?
While it is possible for any individual or entity to complete an LEI number search, there are certain parties that are far more likely to use this tool than others. For instance, if you are a company and you have an LEI code, you may want to check the validity through a search and update the information where necessary.
Alternatively, your business could be involved in a financial transaction with another business. If that’s the case, you may want to explore that the information that you have is accurate and valid. You may also want to use an LEI number search to guarantee there are no issues with fraud here.
Alternatively, you could simply be a key member of the financial industry. If that’s the case, you may want to ensure that information provided by a legal entity identifier is both accurate and valid.
Reasons For Completing An LEI Number Search
There are numerous reasons for completing an LEI search. You may be interested in checking the data that the search will reveal. This can ensure that the data on record is accurate and valid. It can also give you the peace of mind you need if you are involved in a financial transaction.
Alternatively, you may be interested in completing an LEI data challenge. An LEI data challenge will always start with a legal entity identifier search. This challenge refers to the referential integrity of LEI records as well as the completeness and accuracy of the data in question. It is also used to tackle the issue of duplicate entries or problems with a timely response.
It is possible for any and all interested parties to raise a challenge against the LEI data record. This can be completed for any LEI. You will be able to suggest new data that is more correct, current, or accurate. It is possible to challenge the LEI record itself based on both exclusivity or eligibility.
It is important to note that anyone can access the data by completing an LEI search. It is publically available and updates are provided on a daily basis.
Companies are able to use the database to add value in key areas. This includes both AML checks as well as Know Your Customer.
How To Use AN LEI Code Search?
As noted, it is possible for anyone to access an LEI search tool. With the right information, you will be able to find any existing LEI.
It is possible to complete an LEI number search using either the name of the company or the LEI number. Once used, the search tool access will automatically display any LEI information that is accessible through the database. It is also possible to filter the results of a legal entity identifier search by country. This should ensure that there are fewer results that need to be explored.
Remember, it is possible for anyone to challenge the data available. This should provide peace of mind that the data you are accessing can be trusted and is completely valid. A challenge like this can be completed through the same search system. You can opt for a simple challenge or request a completely new validation and renewal of the LEI in question.
The action taken here will depend on the discrepancies in the information that has been revealed through an LEI search.
Benefits Of An LEI Search
There are numerous benefits of being able to complete an LEI number search. As mentioned, it does ensure that there is a greater level of transparency within the financial market. This ensures that there is a lower level of risk associated with any financial transaction. By completing an LEI entity identifier search, you will also be able to accurately determine the risk of a trading partner’s concentration that could be relevant to you.
The wide accessibility of an LEI code search will also help ensure that costs are greatly reduced. Using this solution it takes considerably less time to gather and access information needed at another party. Various reporting task costs are also significantly reduced. This includes reporting plans for regeneration cleanups.
Ultimately though, with an LEI code search, you will get the reassurance you need. A search like this will reveal a code of international currency. As such, it is possible to detect everything from financial fraud to market manipulation. Other acts of disruption will also be easily identifiable when you complete an LEI search and access the relevant information.
Registering A Legal Entity Identifier
Do you need a legal entity identifier? It is important to note that these are not issued directly by the Global Legal Entity Identifier Foundation. Instead, the responsibility to provide these are passed onto local operation units or LOUs or LEI registration agents such as LEI Register. Through an LEI issuer, you will be able to access a range of different services.
Due to the fact that prices of an LEI can differ, it is worth exploring the market to find the solution that matches your needs and your budget. Turnaround time can also differ. It may take a few days or a few hours to gain your LEI. The GLEIF will ensure that the level of LEI data quality remains high and guarantee that the system integrity is effectively maintained.
Once you have obtained your LEI, you will be able to complete an LEI search. This should immediately reveal all the relevant information about your business. The information will be accessible as soon as your LEI has been purchased and or verified.
Complete Your LEI Search
Now you should understand everything that a legal entity identifier search can reveal and what it is used for. As you can see, there are numerous benefits of completing a search like this. It can help reduce the risk that is often involved in financial transactions or help a business to calculate an established risk.
Are you interested in completing an LEI number search? It’s easy to get started using the solution available through our website. Start with the LEI number or company name and you will quickly be able to find the information that you need.