LEGAL ENTITY IDENTIFIER (LEI NUMBER)
Everything you need to know about the LEI - Australia
LEI AUSTRALIA
01. Do you need an LEI in a hurry?
Many regulators place time restraints around complying with the LEI requirement. If you require a Legal Entity Identifier (LEI) quickly, complete your LEI code registration, and receive your LEI number within 1 hour. Our systems are connected to the Australian companies registries and simply by entering your Australian Business Number (ABN) we will pre populate your application and speed up the issuing times.
LEI AUSTRALIA
02. What is a Legal Entity Identifier (LEI)?
A Legal Entity Identifier or LEI, is a 20 digit alpha-number code assigned to legal entities such as companies, funds, trusts or government bodies in order to identify them on a global basis. An LEI identifier as it is known, contains data on every legal entity and can be found in the global LEI index, which consists of over 2 million LEIs globally. The LEI format or LEI structure is standardised and based on the ISO 17442 standard. The 20 characters can be segmented as below:
LEI AUSTRALIA
03. What is the Global LEI System (GLEIS)?
The GLEIS is a global construct which sets the foundation for having a database with every legal entity globally being identifiable via LEI number. The LEI database is a public broader good, thus it is freely accessible and can be navigated using the LEI search tool. The global LEI system was created after the 2008 Global Financial Crisis, when the need for identifying counterparties to transactions was increased, and the lack of required identifier standardisation became all too apparent.
LEI AUSTRALIA
04. The Global Legal Entity Identifier Foundation (GLEIF)
Established in 2014, the Global Legal Entity Identifier Foundation (GLEIF) is a non-profit foundation created to oversee the implementation and management of the GLEIS. GLEIF are endorsed by the G20 countries and created by the FSB – Financial Stability Board.
The headquarters of GLEIF are located in Basel, Switzerland. The website of GLEIF can be found here – GLEIF. LEI Worldwide are an officially recognised GLEIF Registration Agent.
LEI AUSTRALIA
05. Who needs an LEI Number in Australia?
In Australia there are a number of mandates requiring legal entities to obtain an LEI number. There are also a litany of EU, US and Asian regulations mandating the LEI requirement for Australian companies conducting business in these jurisdictions.
ASIC have mandated the use of LEI for market participants since 2013. ASICs DTR (Derivative Transaction Rules) require all OTC derivative transactions entered into by a company, trust, SMSF to report an LEI to Trade Repositories. Any corporation, trust or superannuation fund, will require an LEI.
An Self-managed super fund requires an LEI if the SMSF directly participates in an over-the-counter derivative transaction to which the above regulation will apply.
APRA also require the LEI mandated towards deposit-taking financial institutions with regards to their exposures which exceed 10% of their Tier 1 capital.
LEI AUSTRALIA
06. List of LEI requirements specific to Australia
ASIC Derivative Transaction Rules (Clearing) 2015 (F2015L01960)
RG 265 Guidance on ASIC market integrity rules for participants of securities markets
APRA Reporting Standard ARS 222 - Exposure to Related Entities
APRA Reporting Standard ARS 221.0 Large Exposures
REGULATORY GUIDE 265 Guidance on ASIC market integrity rules for participants of securities markets
Australian Securities and Investments Commission (ASIC) OTC Derivative Transaction Rules (Reporting) 2013
Guidance on Australian Securities and Investments Commission (ASIC) Market Integrity Rules for Competition in Exchange Markets (Australia)
Australian Securities and Investments Commission (ASIC) Derivative Transaction Rules (Clearing) 2015
ASIC Corporations (Derivative Transaction Reporting Exemption) Instrument 2015/844
You can find a full list of global LEI requirements
LEI AUSTRALIA
07. How to get an LEI in Australia
In order to complete a legal entity identifier registration in Australia please go to the LEI registration page and follow these steps:
LEI AUSTRALIA
08. Flexible Payment Options
LEI Worldwide offer flexible payment options as we understand that organisations can have different billing departments, and no everybody will have a company card to hand.
We have Stripe integrations to allow for card payments globally, request for invoice for wire transfer and we can also provide secure and custom payment links upon request. Each order has the opportunity to enter different billing details so a fund may bill a sub-fund or share class for example, and also a multi-national organisation may keep billings separate in the one account.
LEI AUSTRALIA
09. How long does it take to get a Legal Entity Identifier?
The LEI timeframe can vary depending on a number of factors, including entity type, jurisdiction and volume of requests at the same time. In order to speed up the process select LEI fast-track during checkout for priority service
A standard Australian company with an ABN can be issued within a few minutes as we have API connectivity to the companies registry. However a Fund, SMSF or financial vehicle may require human verification steps and this can take up to a few hours.
LEI AUSTRALIA
10. Why do I need to renew an LEI Number?
LEI renewal is the process of updating your LEI record, and each renewal carries a charge as the same check and verifications go into renewing an LEI, and issuing an LEI. The entity data gets rechecked during LEI renewal and the LEI record gets updated accordingly. Primarily, the LEI renewal requirement exists in order to ensure LEI data is maintained, up to date and reliable.
Many regulators require an ACTIVE LEI code, and if the LEI is not renewed within 60 days of its expiry date the status will change to LAPSED.
LEI AUSTRALIA
11. What happens if my LEI code is LAPSED?
Managing LEIs has been traditionally risky and fragmented. People often lose track of their LEIs and inevitably sometimes they lapse. Many regulators require an active LEI, if a lapsed LEI is presented where it should be active, then the trade or transaction may be blocked or delayed. Also this can incur penalties, such as financial fines.
Our recommendation is to renew an LEI 60 days prior to its lapsing date to avoid any unexpected delays, or difficulties with the LEI renewal process.
LEI AUSTRALIA
12. How to renew an LEI Number
You can renew any existing LEI number by going to the LEI renewal page here. You can renew a lapsed LEI at any time thus reactivating it, and you can renew an LEI up to 60 days prior to its expiry date.
LEI AUSTRALIA
13. What is LEI Search 2.0? What is the GLEIF Look-Up?
The LEI search tool also known as the LEI checker or LEI look-up tool offers free access to the global LEI directory. This contains data on over 2 million legal entities globally who have obtained an LEI. You can easily search for any company name, or LEI number and receive legal entity reference data (LE-RD) on their:
- Legal status
- Legal name and address
- Date of incorporation
- Type of entity (e.f Lts, LLC, Fund, Trust etc.)
- Level 2 data: Organisational structure
LEI AUSTRALIA
14. Global regulatory use of the LEI (MiFID 2, AIFMD, EMIR, SFTR etc)
The LEI has been a key element of regulation within global financial markets since 2018. In 2018 MiFID 2, MiFIR were updated in Europe to include the LEI. This was followed by a litany of regulations in securities transaction markets (Securities Financing Transactions Regulation), OTC Derivatives, capital markets activities, lending and borrowing markets and even property financing activities.
Most recently, the Reserve Bank of India (RBI) mandated that any financial transaction exceeding or equal to 5 Crore (INR) would require both parties to the transaction to obtain an LEI.
There are over 116 pieces of legislation currently mandating its use globally. The most prominent and heavily regulated are listed below. Please notes these may vary by jurisdiction, to see a list of local vs global LEI regulations visit: https://www.gleif.org/en/lei-solutions/regulatory-use-of-the-lei
LEI AUSTRALIA
16. What is multi-year LEI registration?
The cost of an LEI can vary amongst LEI providers. It is important to include not just the purchase of the LEI into your decision making, but also the management system that comes with the LEI, as it needs to be maintained and updated every year.
Obtaining an LEI is the easy part, however having a secure system, with a clear dashboard and automated reminder system is key to being on what we have coined as the “LEI Happy Path”. By going with the cheapest LEI provider available it is likely the risk of mismanagement is increased.
NEW LEI
LEI RENEWAL
+ LEI Certificate 15 AUD
LEI AUSTRALIA
14. Global regulatory use of the LEI (MiFID 2, AIFMD, EMIR, SFTR etc)
You can register or renew an LEI for up to 5 years. By doing so, you mitigate what we have coined the “renewal risk”. The LEI still requires annual renewal, however our automated systems will trigger the renewal 60 days before the expiry date arrives.
This means, no further action will be required until the period is up at which point we will contact you again for extending the LEI. This is recommended and popular with longer term companies with a long life expectancy. A 1 year LEI is recommended for short term entities such as SPVs or single transaction vehicles.
The multi-year options also come with built in discounts helping customers save on costs from the initial registration right through to the final year of the 5 or 3 year package.
Custom pricing can be arranged and it is based on volume.
LEI AUSTRALIA
17. What documents do I need to get an LEI Code
In order to obtain an LEI code the entity applying will usually be required to provide some verification documents. These help our vetting teams validate the entity details and find the official legal details of the legal entity.
LEI AUSTRALIA
18. Can I buy an LEI on behalf of my clients?
Yes, if you are working within a bank, financial institution, law firm, asset manager or similar, you can purchase LEIs on behalf of your clients. Just ensure you have the correct information to hand and one or more of the documents listed above.
Many of our clients also have the option to join our partner programme and resell LEIs to their clients.
LEI AUSTRALIA
19. What is an LoA for an LEI, and why do I need one?
An LoA is a Letter of Authorisation. We may issue to you an LoA which needs to be signed by the entity signing authority. The LoA shows this person has given permission for an LEI to be issued/renewed for this particular entity on their behalf. It is not a contract, and does not grant any other powers.
LEI AUSTRALIA
20. What is an LEI Transfer?
An LEI transfer is the act of moving one or more LEIs from one or more LEI providers in to one, single control account. You may wish to complete a bulk transfer of all your LEIs into one account if they are scattered between providers. Often, LEIs can get lost when people who registered them move department, or lose the passwords. With LEI Worldwide, easily move all your LEIs into your dashboard, and invite members to be part of your team so everything is easily managed in the one ‘control account’.
LEI AUSTRALIA
21. How to download an LEI Certificate
By having a PDF LEI certificate you can share this on your website, or easily attach as a file to your regulator or counterparty. This is verified proof of your entities LEI registration, thus proving it has passed all KYC requirements and is a verified legal entity. This type of document can speed up KYC and onboarding costs, and save time in doing manual company checks.
LEI AUSTRALIA
22. What is an LEI transfer?
An LEI transfer is the act of moving one or more LEIs from one or more LEI providers in to one, single control account. You may wish to complete a bulk transfer of all your LEIs into one account if they are scattered between providers. Often, LEIs can get lost when people who registered them move department, or lose the passwords. With LEI Worldwide, easily move all your LEIs into your dashboard, and invite members to be part of your team so everything is easily managed in the one ‘control account’.
LEI COMMUNITY
OUR PARTNERS
LEI Worldwide is an Official GLEIF LEI Registration Agent (RA), and the first RA providing LEIs on a global basis since 2017. Our approach since inception has been focused on providing high quality customer service and helping our clients manage large portfolios of LEIs. LEI Worldwide was formed to help some of the worlds largest organisations meet their regulatory requirements, with emphasis on the updated Markets in Financial Instruments Directive (MiFID II) & regulation (MiFIR) and to assist entities in the process of obtaining an LEI number. There are over 144 pieces of legislation globally mandating the use of the LEI. If your firm is subjected to regulations such as MiFID II transaction reporting obligations, you will require a Legal Entity Identifier number or you will be declared ineligible to execute a trade. This could mean a no trade ruling or financial penalty “no LEI, no trade” as the saying goes.
SUPPORTED BY:
