LEIs have been compulsory in Manitoba, Ontario and Quebec since October 31, 2014 and across all other provinces and territories since July 2016.
Applying for an LEI is Fast & Secure
Registered LEIs meet with ISO standard 17442:2012.
What is a Legal Entity Identifier and why do companies need it?
A Legal Entity Identifier code or LEI number is a unique global identification number for a company that is issued by a GLEIF accredited Local Operating Unit. Financial institutions and regulators use LEIs to identify participants in financial markets.
The LEI system was devised after the 2008 financial crisis in an effort to better regulate and to promote transparency within the global financial market. It is being increasingly adopted in jurisdictions around the world in an effort to achieve these aims. Companies that operate within jurisdictions that mandate the use of LEIs will need to obtain one before they are allowed to transact in that financial market. The use of LEIs for transactions involving OTC derivatives has been mandated in all provinces and territories across Canada since July 2016 (earlier in Manitoba, Quebec and Ontario).
Further, Canadian entities transacting in the European market were required to obtain an LEI in 2018 in order to continue operating within that jurisdiction following the introduction of the MiFID II.
When do you need an LEI?
The use of Legal Entity Identifiers (LEIs) within Canada is mandated by the Provincial Governments. LEIs have been compulsory in Manitoba, Ontario and Quebec since October 31, 2014 and across all other provinces and territories since July 2016.
Regulatory use of LEIs
The potential regulatory benefits associated with a global framework for financial transactions were recognised as early as 20 years prior to the 2008 financial crisis. Before GLEIS, each country was responsible for their own framework for tracking financial transactions.
How can I get an LEI for my company?
In order to apply for an LEI, you will need to find a GLEIF accredited Local Operating Unit (LOU) which has permission to issue LEIs. CanadianLEI works closely with multiple LOUs to ensure that you get the best price and fast service.
How do report a parent-subsidiary relationship?
Since 1 May 2017 entities have been required to disclose direct and ultimate parent company relationships when they apply for a Legal Entity Identifier (an LEI) or when they renew their existing LEI code.
It takes just 2 minutes to complete the application and LEI number is usually issued within 1-2 working days of payment.
Global Legal Entity Identifier system
The global Legal Entity Identifier system is made up of 3 levels, which can seem confusing at first. In this section, we outline some important definitions and details to bolster your understanding of the logics behind LEI number issuance.
GLEIF – Global Legal Entity Identifier Foundation
GLEIF was established by the Financial Stability Board with its primary mission being to invent, develop and manage the global LEI system. GLEIF is also the umbrella organisation for LEI registrar, who stores up all the LEI data. GLEIF is a non-profit organisation with head office located in Basel, Switzerland.
Organisations which may issue LEIs
LOU – Local Operating Unit
An LOU is a organisation accredited by GLEIF that has permission to issue LEIs. LOUs are usually required to gather and verify data and to generate LEIs according to the Protocol. LOUs must request all the relevant information from companies seeking an LEI, and they must confirm this data with the relevant National Business Registry. Globally, there are around 30 LOUs and, of this number, only a few of them are willing to issue LEI numbers for Canadian companies.
Agents for LEI registration
A Registration agent transfers client data to the LOU in accordance with GLEIF standards and requests additional information from the local Business Registry. GLEIF introduced the concept of an LEI Registration Agent in April 2017 to assure the quality of the data in the databases, and to simplify the process of applying for an LEI. CanadianLEI is a Registration Agent that operates in Canada.
CanadianLEI is a Registration Agent that operates in Canada.
CanadianLEI is a Registration Agent that operates in Canada.
Legal Entity Identifier: 20-character alphanumeric string
An LEI number (Legal Entity Identifier) is a unique identification number which is issued to companies which operate in the global financial system. LEIs are based on ISO standard 17442:2012. An LEI is issued only once for each company and consists of 20 characters:
|LOU unique numbers||0||0||Unique characters for the company||Checking characters|
- The first 4 characters are unique to the LOU which has issued the LEI.
- The 5th and 6th characters are the same for each company – 0.
- The following 12 characters consist of letters and numbers and are unique for each company.
- The final 2 characters are known as the checking characters.
The first LEIs were issued in December 2012. To date, more than 1 million LEIs have been issued globally. As at 5 March 2019, more than 30,000 of these LEIs were registered in Canada. You can find out more about the LEI system umbrella organisation on the GLEIF webpage.
LEI number renewal
Each LEI number issued to a company is only active for a period of 1 year. After each year, the LEI needs to be renewed for the following 12 month period. We strongly recommend that you renew your LEI in a timely manner, as the process can take some time. When the LEI has lapsed, it is no longer active and it is, therefore, not possible to operate in the financial markets that mandate its use. In cases where you know in advance that you require your LEI to be active for a longer period of time, you can renew your LEI in advance of the renewal date. For example, if an LEI was issued on 1 November 2017 and is valid until 31st of October 2018; you can renew your LEI in February 2018 for 1 year so that your LEI is valid until 31 October 2019.
CanadianLEI monitors the validity dates of our client’s LEIs and will let you know when you need to renew your LEI. You can apply to renew your LEI via the application form on our website.
Your LEI is issued for a period of 1 year and requires renewal at least once a year.
History of the Legal Entity Identifier System and LEI ROC
Prior to 2012, Legal Entity Identifiers (also known as LEI codes or numbers, or simply as LEIs) did not exist. Instead, each country used their own codes and systems to track financial transactions. The result of this is that it was nearly impossible to identify counterpart transactions within the global financial markets.
What is the MiFID II and why does it matter in Canada?
The MiFID is the Markets in Financial Instruments Directive and has been in force across the EU since late 2007. It has since been updated in an effort to address certain shortcomings, particularly with regard to its policy on equities. The new and improved version, the MiFID II, has been in force since 3 January 2018.
LEI registration in other countries
LEI registration process varies between different countries and jurisdictions as not all countries have a local LEI issuer and most of the LOUs can issue LEIs only to specific regions.
No hidden fees – GLEIF fee is included in the price.
Questions and Answers
1. What is an LEI?
An LEI number (Legal Entity Identifier) is a unique identification number issued to companies that operate within the global financial system. The number consists of 20 characters. An LEI is issued only once and it is unique for each company.
2. Why would I need an LEI?
Legal entities often require LEIs in order to comply with regulatory and reporting requirements within the jurisdiction in which they operate. Put simply, regulators want more information about who is trading, where they are trading, and who their counterparties are within the financial market.
3. Who needs to order an LEI number?
Measures to increase transparency in OTC derivatives markets have been in force across all Canadian provinces since July 2016. Parties to trades in debt securities have been required to report the trades to the relevant body within their province. Some other parties that operate at the periphery of the trade are also required to have an LEI, including reporting agents, brokers acting as intermediaries, clearing members, electronic trading venues and connected clearing houses. https://www.leiroc.org/lei/uses.htm.
4. How can I order an LEI for my company?
CanadianLEI makes the process of obtaining an LEI simple!
- Complete the application on our webpage and pay directly with your debit or credit card.
- Sign the application digitally, or print and sign the form manually and return to us via email email@example.com
- Wait for 1-2 days and your issued LEI number will be sent to your email.
5. How much does an LEI cost?
Products and prices for the initial LEI application:
1-year LEI – LEI registration with 1-year LEI validity – C$129 (C$129 / year)
3-year LEI – LEI registration with 1-year LEI validity + 2 annual renewals – C$336 (C$112 / year)
5-year LEI – LEI registration with 1-year LEI validity + 4 annual renewals – C$475 (C$95 / year)
Products and prices for LEI renewal packages:
1-year renewal – LEI renewal for 1 year – C$105 (C$105 / year)
3-year renewal – LEI renewal for 1 year + 2 annual renewals – C$291 (C$97 / year)
5-year renewal – LEI renewal for 1 year + 4 annual renewals – C$435 (C$87 / year)
6. How do I pay for the LEI?
You can easily pay with PayPal or credit card. We offer a full refund if, for some reason, your company is not eligible for an LEI.
7. How long is an LEI valid?
An LEI is valid for a period of 1 year from the date of issue. You need to renew your LEI every 12 months.
8. Where can I check when do I have to renew my LEI?
You can check the status of your LEI and next renewal date on GLEIF website.
9. How do the multi-year LEI contracts work
Multi-year contracts help you save time and money! If you order LEI registration for 5 years (a 5-year LEI), you will receive your LEI number, valid for 12 months, and we will automatically renew your LEI for 4 additional years. LEI renewal processes will be executed 30 – 60 days before your annual renewal date. This saves you the hassle of renewing your LEI annually and you can rest assured that your LEI will always be up to date across the next 5 years.
10. How much time it takes before I receive my LEI?
After you submit the LEI application and send us the LEI authorization document, LEI is usually issued within 24 hours.