The ISE has launched a new service, providing Pre-Legal Entity Identifiers through its online portal www.isedirect.ie.
A Legal Entity Identifier (LEI) is a reference code intended to uniquely identify a legal entity that engages in financial transactions. It is intended that LEIs will eventually be assigned to financial institutions on a global basis and will assist regulators in aggregating and analysing financial transactions data from across different jurisdictions with greater accuracy and speed than has been possible to date.
The global LEI system (GLEIS) is part of the international regulatory response to the global financial crisis and is intended to facilitate regulators in monitoring systemic risk through being able to more accurately assess the exposures of individual financial entities.
The range of entities that will ultimately require an LEI is broad and includes:
- All entities listed on an exchange
- All entities that trade stock or debt
- Collective investment schemes
- All financial intermediaries
- Banks
- Finance companies
LEIs are to be issued in each jurisdiction by Local Operating Units (LOUs) once the global quality standard setter, the Central Operating Unit, becomes fully operational. In advance of that date, a number of pre-LOUs have been authorised to issue pre-LEIs to entities wishing to prepare for LEI implementation. While the global LEI standards are still in development, the need for entities to prepare for LEI implementation is growing. For example, entities that are obliged to report derivatives transactions under EMIR will need to do so using such an identifier. Pre-LEI codes will ultimately convert to permanent LEI codes.
The Central Bank of Ireland as a member of the Financial Stability Board’s Regulatory Oversight Committee has sponsored the ISE in becoming a pre-LOU with authority to issue pre-LEI codes.
Pre-LEIs will be issued by the ISE to entities applying through its portal (www.isedirect.ie) at a cost of €150 per pre-LEI code (ex. VAT), with an annual renewal charge of €100 (ex. VAT).
Contributed by James Phelan
