What is an LEI (Legal Entity Identifier)?
LEI (Legal Entity Identifier) is a unique identifier for legal entities engaging in financial operations. It consists of 20 characters and is also classified/referred to as ISO 17442. According to the latest European Union regulations introduced in 2016, obtaining an LEI identifier is also necessary for sole proprietors wishing to actively engage in the financial market.
How do you get an LEI identifier?
In order to obtain an LEI code, it is necessary to submit an appropriate application. Since LEI codes apply to all legal entities within the European Union, each member country has an institution responsible for issuing these identifiers. Note that if you apply for an LEI code for an institution other than your own sole proprietorship, you must have authorization to apply for the code on behalf of that organization.
Where to get an LEI identifier?
In Poland, the easiest way to obtain an LEI code is through the NDS (National Depository for Securities). Although theoretically we have the possibility to apply for an LEI code in any member country, the easiest and probably one of the cheaper options will be to apply specifically at the NDS.
Who must have an LEI code?
All financial institutions transacting on the stock market should have an LEI code. This includes brokers, investment funds, banks, credit institutions or financial intermediaries but also sole proprietors. The exact requirements are set forth in a 2016 European Commission regulation.
How much does it cost to assign an LEI code?
Unfortunately, the LEI code is not free, in addition, a fee has to be paid not only for its issuance but also every year for its renewal.
Initially, assigning an LEI code costs 420 zlotys net + 73 fees for (GLEIF, or Global LEI Foundation).
Each subsequent renewal is a net cost of 280 zloty + 73 zloty fees.
Renewal is possible each time 60 days before the current expiration date and can be done independently in the NDS system.
What is GLEIF
GLEIF is the Global LEI Foundation – the organizing body that oversees the operation and security of the LEI badge system.
