LEI for banks, investment firms, asset managers

As of 3 January 2018, the LEI - legal entity identifier- will be mandatory for financial market participants engaging in securities transactions. This applies to companies, but also municipalities, associations and foundations. An LEI must be provided by companies to their respective securities partner, such as their bank or asset manager as they will no longer be allowed to carry out with securities or derivatives from next year if it is not possible to precisely identify the customer by means of an LEI.

What needs to be done?

Ideally, companies should take care of their LEI application now to ensure that all securities transactions remain fully operational beyond 03.01.2018. The application can be made directly on this portal or via a power of attorney from the responsible bank or asset manager.

With self-registration, the registering entity must provide accurate reference data, such as the official name and registered office. GS1 Germany will then verify the reference data with the relevant local authority - for example, a national trade register.

Background

The LEI is a twenty-digit code linked to essential reference data for clear and unambiguous identification. These are, for example, the register name and register number, legal form of the company, legal domicile of the head office or the fund manager.

It was implemented in 2008 as a result of the financial market crisis. The insolvency of the investment bank Lehmann Brothers triggered a chain reaction on the financial markets. The leading industrial and emerging economies (G20) agreed to increase transparency and security in off-market trading in financial derivatives.