- Information on the Legal Entity Identifier (LEI)
- What the LEI code is, and the ISO 17442 standard
- Key elements of the LEI Code plan according to the ISO 17442 standard
- Benefits of implementing the ISO 17442 standard
- Who issues the LEI Code
- Why activating or renewing an LEI Code
Information on the Legal Entity Identifier
Within the global financial context, transparency and efficiency are essential to guarantee market stability and trust. A crucial element to achieve these goals is the LEI Code (Legal Entity Identifier), which is designed based on the ISO 17442 standard. This article will describe the purpose of the LEI Code, the key role played by the ISO 17442 standard and the benefits deriving from the implementation of this standard.
The LEI Code was introduced following the global financial crisis of 2008, with the aim of providing greater transparency and making it easier to supervise financial risks through the unique identification of the parties in financial transactions. This has helped the regulatory authorities and financial institutions to monitor and better assess the risks associated with financial activities.
What the LEI code is, and the ISO 17442 standard
The LEI, or Legal Entity Identifier, is a unique alphanumeric code that is assigned to each legal entity involved in specific financial transactions. This code is aimed at companies, investment funds, financial institutions and other entities connected to the financial world. The main aim of the LEI Code is to provide a clear and unique identification, eliminating ambiguity and confusion in financial transactions at global level.
The ISO 17442 standard has been developed to define the standards and requirements for the structure of the LEI Code. This standard provides the guidelines to guarantee that the LEI Codes are assigned coherently, accurately and in compliance with the set rules. Structuring the LEI Code according to the ISO 17442 standard helped to create a harmonised global environment for the identification of financial entities.
Key elements of the LEI Code according to the ISO 17442 standard:
Code structure: the standard specifies the structure of the LEI Code, indicating the fixed number of alphanumeric characters and the arrangement of each element within the code. This ensures coherence and ease of interpretation.
Attribution and management: the standard defines the procedures used to assign and manage the LEI Codes, guaranteeing that they are accurately kept and updated eliminare. This helps to avoid duplicates and errors in the system.
International standard: the design of the LEI Code according to the ISO 17442 standard ensures that the LEI is recognised at international level, facilitating exchanges and transactions between the various jurisdictions.
Benefits of implementing the ISO 17442 standard:
Risk reduction: a uniform system to design the LEI Code reduces the risk of errors and ambiguity in financial transactions, helping to improve the system’s security and stability.
Operational efficiency: standardisation simplifies the financial entity identification and registration processes, allowing a more fluid and faster operational flow.
Regulatory compliance: the implementation of the ISO 17442 standard helps financial institutions to comply with international regulations, improving transparency and compliance.
Who issues the LEI Code
The assignment of the LEI Code is managed by accredited organisations, known as Local Operating Units (LOU), implementing the standards set by the LEI agreement.
The information associated with the LEI Code includes the registration data for the legal entity, such as the legal name, registered address, registered jurisdiction and other significant information. The central register containing all the LEI Codes is known as the "Global LEI System" (GLEIS), and is managed and coordinated by the Regulatory Oversight Committee (ROC) and by the Global Legal Entity Identifier Foundation (GLEIF).
InfoCamere, a Local Operating Unit accredited by GLEIF (Global Entity Identifier Foundation) since 2017, is among the foremost operators in the world, managing over 170,000 LEI Codes.
Our service, already operative in Italy, is now also active in the UK, Luxembourg and Germany under the name ID LEI.
Why choosing our services? / Why activating or renewing an LEI Code with ID LEI?
- Reliability: we are an LOU officially accredited by GLEIF, and we constantly pass the quality checks set by GLEIF...
- Immediate assistance: We are among the few LEI Code issuers offering direct assistance services...
- LEI certificate: the LEI certificate issued by InfoCamere, thanks to a QR code, offers real-time data associated with your LEI code...
Through the standardisation of legal entities identification, the LEI code simplifies communication and data exchange between the different financial institutions and regulatory authorities all over the world, improving the transparency and efficiency of global financial markets.
