What is a LEI code?
The LEI (Legal Entity Identifier) is a unique 20 alphanumeric combination code, which is used to identify legal entities operating on the financial market. Only one unique LEI code can be assigned to a legal entity.
LEI code is not needed for clients – natural persons.
For what purposes LEI code is required?
The obligation to use LEI codes is provided for in several legal acts of the European Union. The basic requirement for the LEI code follows from the obligation of reporting transactions to trade repositories by identifying a legal entity using the LEI code.
Starting with October 30th, 2017, LEI code will be necessary for all legal entities that will be performing transactions with derivative financial instruments, further, starting with January 3rd, 2018, LEI code will be necessary for all legal entities which will be performing transactions with any type of the financial instruments, including transfer of the financial instruments.
How to obtain LEI code?
LEI code can be assigned by authorized institutions (also referred to as LOC- Local Operating Unit) of the Global Legal Entity Identifier Foundation (GLEIF). You can review the list of authorized institutions on the website of the GLEIF - www.gleif.org/en/lei-focus/how-to-get-an-lei-find-lei-issuing-organizations. It is the client’s own responsibility to contact one of the authorized institutions (LOC) and to obtain a LEI code.
LEI code has a registration and annual subscription fee, therefore, when choosing the LEI code issuer, it would be necessary to evaluate the procedure and defined fee for each Authorized Authority (LOC).
You can inform the bank about receipt of the LEI code by sending a notice via Citadele Online Banking, in the Investments section, or by e-mail email@example.com.
What will be the consequences if the client does not have a LEI code?
If the client will not obtain a LEI code, then client will not be able to perform any transactions with the financial instruments on the account, incl. to submit orders for the purchase, sale or transfer of the financial instruments.
You can find out more information about LEI codes on the Financial and Capital Market Commission website (information on Latvian):
Enterprises must obtain Legal Entity Identifier for the transactions with the financial instruments
Q&A’s about LEI codes and it’s usage for transactions with the financial instruments