The legal entity identifier is also known by the acronym Lei, which comes from its name in English legal entity identifier . It is a unique and global code composed of twenty characters of numbers and letters, based on the ISO 17442 standard, and which aims at identification of the legal entities of a financial contract . In this sense, it is used to legally recognize legal persons that are an integral part of financial transactions.
And why do we write today of the Lei Code? Because from January 3, 2018 , in case of not having this code, financial intermediaries will not be able to continue carrying out the operations requested for the company. That is, whether your company operates regularly, as if it does occasionally, in the financial market (buy or sell stock stocks; subscribes or reimbursed investment funds or pension plans, etc.) will need the LEI code from January of 2018. If you do not have it, you will not be able to study orders to buy new financial assets, or to sell the ones you already have!
1. FUNCTIONS OF THE CODE LEI
The G20 promoted the launch of the LEI Code to provide the financial markets with greater transparency. That is why it offers a specific vision of the risks assumed by each participant in a transaction. The functions of the LEI code can summarize them in these three aspects:
- Identification of the contracting parties in financial transactions worldwide.
- Facilitate regulatory administrations possible systemic risks.
- Improve financial risks management.
2. What or who is likely to have a lei code?
Different standards at European level require obtaining the Lei Code to be a participant in financial markets. All companies participating in the derivatives trade need to have a LEI code. The first recipients are financial entities:
- Banks and financial companies.
- Entities that issue actions, debt or values for other structures.
- Building organizations in the stock market.
- Entities that trade actions or debt.
- Investment means (investment and pension funds are included).
- Participating entities under the supervision of a financial regulator.
- counterpart entities for financial transactions.
3. Who takes care of the Lei Code in Spain?
As we have mentioned earlier, the Lei code is a unique and worldwide code. In our country, identifiers are issued and managed by the Mercantile Registry. In addition, the College of Registrars of Spain is responsible for guaranteeing the operation of the system and compliance with technical and quality standards.
Globally, the LEI code system is structured on three levels:
- The Roc (Regulatory Oversight Committee) is the ultimate responsible for the Lei Code. It is the entity responsible for system supervision and has more than 50 financial regulators worldwide. Since the creation of this system, Spain is a member of the ROC through the Bank of Spain.
- gleif (Global Legal Entity Identifier Foundation). It is a non -profit foundation that is responsible for managing the system (with the supervision of ROC).
- The last level of the system is the Lou (local operating units). The College of Registrars of Spain acts as a local Opertaing Unit (LOU), which have the function of implementing the LEI at the local level and providing it with the entities that request it.
4. How can I get the lei code?
Obtaining the Lei code is not immediate. This qualification process will have a maximum duration of fifteen business days. While official sources establish that this period usually does not usually exceed four business days
- In the first place, the application and payment of fees must be made formalized (proof of self -assessment income).
- Once the application has been formalized, it must be submitted in the Mercantile Processing Registry.
- Verification stag. The registration must verify the data set forth by the applicant, after consultation in the different public sources that have such information. In this process it is also reviewed that the applicant no longer has an active Code, or that the application between conflict with other previous ones.
- At the end of this process, the requesting entity will receive the Lei certificate via email. From that moment on, the Lei code will be active.
5. Is the Lei code forever?
The LEI code has the validity of one year from the date of issuance, or from the date of the last renewal.
In the case of non -renewal of the Code Lei before this period of one year passes, the Lei Code will go to the “expired” state.
The LEI code can be renewed similarly to obtaining the code. In this sense, the telematic renewal will be made, presenting said application and their rates in the Mercantile Registry.
You can download the summary about the http://www.verumasesores.com/wp-content/uploads/2017/09/por-qué-necene-un-code- Lei.pdf here.
If you want more information, contact in firstname.lastname@example.org and discover how we can help you. In http://ww.verumasesores.com. We are specialists in the processing of the lei code For our clients. Do not leave compliance with this requirement for the last moment.