The Legal Entity Identifier (LEI) is a 20-digit, alpha-numeric code based on the ISO 17442, linked to key reference data that enables clear and unique identification of legal entities participating in financial transactions, at the national or international level.
The reference data linked to each LEI code comprises:
- The official name of the legal entity as recorded in the official registers,
- The registered address of that legal entity,
- The country of formation,
- The date of the first LEI assignment; the date of last update of the LEI information; and the date of expiry, if applicable.
Simply put, the publicly available LEI data pool can be regarded as a global directory, which greatly enhances transparency in the global marketplace.
The Financial Stability Board (FSB) has reiterated that global LEI adoption underpins "multiple financial stability objectives" such as improved risk management in firms as well as better assessment of micro and macro prudential risks. As a result, it promotes market integrity while containing market abuse and financial fraud. Last but not least, LEI rollout "supports higher quality and accuracy of financial data overall". Following this objectives, the FSB developed the principles for the governance of the LEI code.
The governance structure of the LEI code is conformed by the LEI Regulatory Oversight Committee (LEI ROC) and the Global Legal Entity Foundation (GLEIF). The LEI ROC is a group of public authorities from around the globe established in January 2013 to coordinate and oversee a worldwide framework of legal entity identification, the Global LEI System. In its role as overseer of the Global Legal Entity Identifier Foundation (GLEIF), the LEI ROC ensures that GLEIF upholds the principles of the Global LEI System.
The governance structure of the LEI code is conformed by the LEI Regulatory Oversight Committee (LEI ROC) and the Global Legal Entity Foundation (GLEIF). The LEI ROC is a group of public authorities from around the globe established in January 2013 to coordinate and oversee a worldwide framework of legal entity identification, the Global LEI System. In its role as overseer of the Global Legal Entity Identifier Foundation (GLEIF), the LEI ROC ensures that GLEIF upholds the principles of the Global LEI System.