LEI
legal entity identifier
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A globally unique 20-character identifier for legal entities under ISO 17442.
The last two characters are check digits under ISO 7064, so typing errors can be detected automatically.
In practice
A family's companies and foundations need an LEI as soon as they trade securities or enter into derivatives – without a valid identifier, banks may not execute certain orders. The LEI must be renewed every year; if it lapses, transactions are often blocked without anyone noticing. In practice, the LEI and its expiry date are recorded for each legal entity and flagged for renewal in good time.
Distinctions and common mistakes
The LEI replaces neither the commercial register number nor the business identification number; it supplements them for financial market transactions and is issued by accredited issuing organisations. A typical mistake is a missed annual renewal: without a valid LEI, banks can reject securities orders from a company. Changes of name or registered office should also be reported to the issuer so that the reference data remain correct.
Relevant in: EU-wide
Related terms
- KYB
- The application of KYC checks to companies and other legal entities, including their ownership and control structure.