LEI codes for Funds and Trusts

LEI codes for Funds and Trusts

Obtaining a Legal Entity Identifier (LEI) for funds and trusts is essential and mirrors the process for other entities.

Key Takeaways:

  • LEIs for funds and trusts adhere to the same issuance process as other entities.
  • Mandatory under various EU regulations for funds, fund managers, trusts, and more.
  • Annual renewal is required for investment firms under MiFID II.
  • LEIs for funds and trusts may be subject to an additional surcharge (entity type surcharge).
  • LEIpapa offers streamlined LEI registration for funds and trusts.

Get an LEI for a Fund or Trust

Obtaining a Legal Entity Identifier (LEI) for funds and trusts is essential and mirrors the process for other entities. This is particularly critical given the EU’s regulatory requirements encompassing structures like funds, fund managers, and trusts, under directives such as AIFMD and Solvency II. Additionally, investment firms governed by MiFID II must ensure the annual renewal of their LEI.

A client who is a legal entity or structure, including a charity or trust, needs to make arrangements to obtain an LEI code if it wants the investment firm to continue to act on its instructions or make a decision to trade on its behalf from 3 January 2018 onwards.
Source: ESMA – European Securities & Markets Authority

Effortless LEI Registration for Funds and Trusts with LEIpapa

At LEIpapa, we simplify the LEI acquisition journey for funds and trusts. Our straightforward registration process begins on the Register an LEI page. Create a secure account with LEIpapa and submit your order seamlessly. Our client service team, experts in facilitating LEI issuance for funds and trusts, are readily available to assist and answer any queries. Let us guide you through every step 🌞.

When you register an LEI for a Fund or Trust, just specify your entity type as a FUND or TRUST accordingly during the registration process and we will do the rest.

When you register an LEI for the Fund Management Company (AIFM), which is not a Fund (AIF) itself but manages the Fund, please choose GENERAL as the entity type.

Specify your entity type as a FUND or TRUST during the registration process
Just specify your entity type as a FUND or TRUST during the registration process and we will do the rest.

Entity Type Surcharge

Please note that we may charge a fee if your entity type is a Fund, Trust, or Will Pension. This fee covers the additional time required to verify mentioned types of entities. Find additional information on the Pricing page.

In any case, you will see the final amount you need to pay once you proceed with the checkout. The final amount is calculated according to your company’s jurisdiction, structure, active period ordered, and VAT registration.

Further Sources


What is a Fund?

In brief, a fund is a pool of money that is allocated for a specific purpose.

At its core, a fund is essentially a dedicated pool of money set for a particular goal. This concept manifests in various forms, such as a city’s budget for a new civic center, a university’s scholarship fund, or an insurance company’s reserve for customer claims.

Funds operate on a principle of targeted allocation and often involve investment strategies for maximizing returns. Their scope ranges from organizational to personal finance management. Prominent examples include pension and insurance funds, foundations, endowments, and even individual or family-oriented funds for emergencies or educational purposes. A notable application in the workplace is the provision of retirement funds as employee benefits.

Key Takeaways:

  • Funds represent allocated money pools for distinct objectives.
  • Investment and professional management often drive these funds for investor returns.
  • Typical fund types include pension, insurance, foundations, and endowments.
  • Funds serve both organizational and personal financial needs, like retirement and education savings.

What is a Trust?

A trust functions as a legal entity, possessing distinct rights akin to an individual or a corporation. It is formed when a trustor entrusts a trustee with the responsibility to manage property or assets for the benefit of a third party, known as the beneficiary.

The primary objective of establishing a trust is to offer legal protection for the trustor’s assets, ensuring they are distributed according to the trustor’s wishes. Trusts play a vital role in simplifying estate management by reducing the time and paperwork involved, and they can potentially minimize inheritance or estate taxes.

Trusts are not just for the wealthy; they are adaptable instruments suitable for a variety of purposes, including use as a closed-end fund structured like a public limited company. Discover more about the diverse applications of trusts in safeguarding assets for beneficiaries.

Key Takeaways:

  • Trusts are fiduciary arrangements where a trustor assigns a trustee to manage assets for a beneficiary.
  • Versatile in nature, trusts serve multiple purposes, including asset protection and streamlined estate planning.
  • Trusts are categorized into six types: living or testamentary, funded or unfunded, and revocable or irrevocable.

How much does it cost to register an LEI?

All prices and additional fees for the services of LEI registration, renewal and transfer are listed on the Pricing Page.

What is the AIFMD?

The Directive on Alternative Investment Fund Managers (AIFMD), introduced and published in the Official Journal of the European Union on 1 July 2011, represents a significant stride in establishing a comprehensive, effective regulatory, and supervisory framework for alternative investment fund managers within the EU. This Directive is a cornerstone in bolstering the financial market by enhancing transparency, ensuring investor protection, and facilitating market efficiency.

Broad Scope and Inclusive Impact of AIFMD

AIFMD’s broad scope encapsulates the management and marketing of alternative investment funds or “AIFs.” This includes a wide array of investment vehicles, both those traditionally recognized as funds and others not immediately identifiable as such. This wide-ranging applicability underscores AIFMD’s role in bringing a diverse set of investment vehicles under a unified regulatory umbrella, enhancing the consistency and reliability of the investment market.

Content of the Directive: A Comprehensive Overview

The Directive is detailed and covers various topics essential for both European and non-European fund managers. European fund managers authorized under AIFMD benefit significantly from the clear guidelines and standards set forth, ensuring they operate within a well-defined regulatory framework. Non-European fund managers, especially those marketing to European investors, find the marketing section particularly advantageous. This section aids them in complying with AIFMD standards, thereby facilitating their access to the lucrative European market.

Effective Implementation Across EU Member States

The AIFMD, like other EU Directives, requires domestic legislation in each EU Member State for implementation. This approach allows for harmonization across the EU while respecting the individual legal frameworks of each Member State. The addition of directly applicable Level 2 Regulations at the EU level further strengthens this harmonization, ensuring a consistent application of rules across all Member States.

The UK’s Continued Alignment Post-Brexit

Even after Brexit, the UK’s retention of many AIFMD-derived rules signifies the Directive’s enduring value and effectiveness. Although the UK now navigates as a “third country” for the EU, the principles and standards of AIFMD continue to influence its regulatory approach towards alternative investment funds. This continued alignment underscores the Directive’s robustness and adaptability in a changing political landscape.

EEA Relevance and Wider Adoption

Marked “with EEA relevance,” AIFMD extends its impact beyond the EU to non-EU countries within the EEA, namely Iceland, Liechtenstein, and Norway. This wider adoption signifies the Directive’s success and relevance in creating a unified and efficient market for alternative investment funds across Europe.

AIFMD 2.0: A Progressive Evolution

The ongoing evolution of AIFMD, with legislative proposals for AIFMD 2.0, indicates its adaptability and responsiveness to the dynamic financial market. The proposed amendments, reflecting the positions of the European Commission, Council, and Parliament, aim to further refine and enhance the Directive, promising a more robust, transparent, and investor-friendly landscape.

What is Solvency II?

Solvency II is the prudential regime for insurance and reinsurance undertakings in the European Union that has entered into force in January 2016.

Solvency II sets out requirements applicable to insurance and reinsurance companies in the EU with the aim to ensure the adequate protection of policyholders and beneficiaries.

Solvency II has a risk-based approach that enables to assess the “overall solvency” of insurance and reinsurance undertakings through quantitative and qualitative measures.

How is the Solvency II regulatory framework structured?

The Solvency II regulatory framework is built on a three-pillar structure:

  • Pillar I sets the quantitative requirements i.e. the assets and liabilities valuation and capital requirements.
  • Pillar II sets the qualitative requirements, including governance and risk management of the undertakings and the Own Risk and solvency Assessment (ORSA).
  • Pillar III sets the supervisory reporting and public disclosure. The three pillars form a coherent approach that allow to understand and to manage risks across the sector.

What are its main features?

The key features of the Solvency II regulatory framework are:

  • Market consistent: assets and liabilities shall be valued at the amount for which they can be exchanged, transferred or settled in the market
  • Risk-based: Higher risks will lead to a higher capital requirement to cover for unexpected losses
  • Proportionate: regulatory requirements shall be applied in a manner that is proportionate to the nature, scale and complexity of the risks inherent to the business of the insurance and reinsurance undertakings.
  • Group supervision: supervisors shall increase coordination and exchange of information in colleges of supervisors to improve cross-border supervision of insurance and reinsurance groups

Solvency II legal provisions

The Solvency II legislation is implemented on three levels:

  • Level 1: Solvency II Directive;
  • Level 2: the Delegated Regulation and Implementing technical standards;
  • Level 3: Guidelines.

To get a full view on the legal provisions, visit the Solvency II Single Rulebook, which provides a direct access to key regulatory and supervisory texts within the scope of EIOPA’s activity.

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