According to the Commission Delegated Regulation (EU) 2016/1437 of 19 May 2016 supplementing the EU Transparency Directive (the Regulation), it will become compulsory for each Officially Appointed Mechanism (OAM) to use Legal Entity Identifiers (LEI) as unique identifiers for all issuers on a regulated market within the meaning of MiFID.
In order to anticipate the entry into force of the Regulation, the Luxembourg Stock Exchange, in its capacity as operator of a regulated market and the only OAM in Luxembourg requires issuers using their OAM to obtain and provide their LEI. The same is expected to apply to the Netherlands Authority for the Financial Markets in the Netherlands and the Belgian Financial Services and Markets Authority in Belgium.
The LEI is a unique 20-character ID code associated with a single legal entity in accordance with the ISO 17442 standard which enables interested parties to easily identify legal entities and/or funds involved in financial market operations. Its goal is to help improve the measuring and monitoring of systemic risk and support more cost-effective compliance with regulatory reporting requirements.
Luxembourg and Belgium-domiciled entities can create a LEI via the GMEI portal and Dutch-domiciled entities can create a LEI via the Dutch Chamber of Commerce. Basic information will be required in this respect, including the legal name, registered address, headquarters address as well as the entity’s status and legal form.
The LEI’s assignment process begins after payment is processed and validation against public sources has occurred. Once the review is complete, the record will be assigned a LEI code and moved to the relevant Database. It takes approximately three business days from the time the request for LEI assignment is received to the time that the record is listed in the relevant Database.