Why an Active LEI Matters More Than Simply Having an LEI Number
Getting a Legal Entity Identifier, or LEI, is an important first step for a UK company, fund, trust, charity, special purpose vehicle or other legal entity involved in financial activity. But receiving the 20-character LEI code is not the end of the process. An LEI must be renewed every year to keep the legal entity’s reference data current. If renewal is missed, the LEI is generally marked as Lapsed in the Global LEI System. The code still belongs to the entity, but its information has not been revalidated within the required period. For organisations that use their LEI for financial reporting, regulated transactions, fund operations, banking or counterparty onboarding, an active LEI can be much more useful than an LEI that simply exists in a database. What does “active LEI” mean? An LEI is a globally recognised 20-character code that identifies a legal entity. It is connected to public information about the organisation, such as its legal name, registered address, jurisdiction,...