Who Needs an LEI Number?
According to the ISO 17442 standard, the applicability of the Legal Identifier to “legal entities”: includes, but is not limited to, unique parties that are legally or financially responsible for the performance of financial transactions or have the legal right in their jurisdiction to enter independently into legal contracts, regardless of whether they are incorporated or constituted in some other way (e.g. trust, partnership, contractual). It excludes natural persons but includes governmental organizations and supra-nationals.
The simple and clear definition in ISO 17442 mentioned above makes all legal entities, other than natural persons, eligible for obtaining the Legal Entity Identifier (LEI). There remains a distinction between the eligibility for LEI identification and the requirement to obtain it, which varies between different jurisdictions. However, the term is not limited to just entities defined this way. In its broadest definition, the term may also apply to any legal entity doing business in today’s global economy.
It is easy to assume that the LEI code standard will replace some other identifiers that are currently used to elucidate data about businesses, and on a practical level, it looks more than real that very soon every company that acts as a legal entity will need to obtain an LEI number.
At present, LEIs are mandatory for payment institutions, banks, insurance companies, brokerages, investment companies and funds, credit unions, and any other entity acting on the financial market.
The regulatory use of LEI codes is driven by the authorities in local jurisdictions.
Why register an LEI with LEIpapa
LEIs contain valuable, accurate, and transparent identity data attributes, which is why they enable high levels of trust in an organization’s legitimacy and identity. Increasing numbers of data providers and credit check organizations utilize Legal Entity Identifiers in Know-Your-Customer (KYC) and client onboarding processes.
LEIpapa is an official Registration Agent of Ubisecure RapidLEI and has been in the business since 2021 guiding its clients through the world of LEI. We offer a professional and secure way to register LEIs for all companies you own or represent. We are here to help legal entities apply for new LEI codes and renew their existing LEIs.
By ordering the LEI NFT certificate minted by LEIpapa and accessible on the LEIpapa NFT Platform, you can share your transparent and verified data stored on the blockchain with financial institutions and other financial market participants.