What is an LEI code? The complete guide
The definition of an LEI is straightforward: it is a unique international identifier used to identify a legal entity in financial transactions. The LEI is used by banks, financial intermediaries, regulators and market infrastructures to know exactly which entity is involved in a transaction.
It applies in particular to companies, investment funds, securitisation vehicles, associations, foundations and other legal entities carrying out certain financial transactions.
Table of contents
- What is an LEI code? The complete guide
Definition of an LEI
LEI stands for Legal Entity Identifier. It is a unique alphanumeric code assigned to a legal entity.
This code makes it possible to identify an entity reliably across international financial systems. It helps avoid confusion between companies with similar names, subsidiaries, investment vehicles or entities established in several jurisdictions.
In practice, the LEI acts as an international identity card for legal entities operating in financial markets.
What is an LEI code used for?
An LEI code is mainly used to strengthen transparency in financial markets. It allows financial institutions and regulators to clearly identify the entities carrying out transactions.
It is used to:
- identify a company or a fund in a financial transaction;
- report transactions to the competent authorities;
- open or maintain certain financial accounts;
- trade financial instruments;
- improve the traceability of flows and counterparties.
The LEI is therefore an identification tool.
Beyond financial transactions, it may also be requested as part of other formalities to confirm the existence of the relevant entity.
Who needs to obtain an LEI?
An LEI may be requested by any legal entity with a verifiable official existence.
The entities concerned include in particular:
| Type of entity | Example use of the LEI |
|---|---|
| Commercial company | Transactions in securities, bonds or derivatives |
| Investment fund | Subscription, redemption or financial reporting |
| Holding company | Portfolio management or financial transactions |
| Public entity | Financial or market transactions |
When is an LEI mandatory?
An LEI becomes mandatory when a legal entity is involved in certain regulated financial transactions.
It is notably required to:
- carry out transactions in financial instruments;
- allow a bank or intermediary to report a transaction correctly;
- comply with certain reporting obligations;
- open or use certain accounts linked to financial markets;
- identify a counterparty in regulated transactions.
Without a valid LEI, an entity may be blocked by its bank, broker, depositary or financial intermediary.
In practice, it is therefore advisable to anticipate the LEI application before any significant financial transaction.
What information is associated with an LEI?
An LEI is not just a code. It is linked to a set of information used to identify the relevant entity.
The information generally associated with an LEI includes:
- the legal name;
- the registration number or local identifier;
- the registered office address;
- the jurisdiction of registration;
- the status of the entity;
- certain information relating to the ownership or group structure, where available.
This information must be consistent with the entity’s official documents. This is why preparing the application file is an important step.
How to obtain an LEI
To obtain an LEI, the entity must submit an application to an organisation authorised to issue this type of identifier. The application generally requires accurate legal information and documents proving the existence of the entity.
The main steps are as follows:
- identify the applicant entity;
- gather the supporting documents;
- complete the application form;
- submit the file to the competent organisation;
- follow up on validation and issuance of the LEI code.
Processing times depend on the quality of the file, the availability of documents and the checks required.
For a practical guide, you can read our article: how to obtain an LEI.
Get assistance with your LEI application
An LEI application may appear simple, but an error in the legal information can delay issuance of the code. This can become problematic when a financial transaction, account opening or administrative procedure depends on obtaining the LEI quickly.
Get LEI assists companies, funds and legal entities with their LEI procedures.
Our service covers in particular:
- document preparation;
- verification of legal information;
- submission of the application;
- follow-up until the LEI is obtained.
You can submit your request directly through our dedicated page: LEI application.
To learn more about our full range of support, you can also visit our services.
FAQ
What is the definition of an LEI?
An LEI, or Legal Entity Identifier, is a unique international identifier assigned to a legal entity. It makes it possible to identify that entity reliably in financial transactions and reporting systems.
Is an LEI mandatory for all companies?
No, not all companies are required to have an LEI. It becomes necessary when a company carries out certain financial transactions, particularly in financial instruments or through intermediaries subject to reporting obligations. It may also be required when a company wants to complete certain administrative procedures.
Who can request an LEI?
Any legal entity with a verifiable official existence can request an LEI. This includes companies, funds, holding companies, associations, foundations and certain public entities.
Does an LEI need to be renewed?
Yes. An LEI is only valid for one year and must be renewed to remain valid.
How long does it take to obtain an LEI?
The processing time to obtain an LEI generally varies between 24 and 48 hours from the submission of a complete file.