What is a Legal Entity Identifier and why do companies need it?
A Legal Entity Identifier, or LEI code, is a unique 20-character code that identifies a company in the global financial system. LEIs are issued by Local Operating Units (LOUs) accredited by GLEIF. Banks, financial institutions and regulators use LEIs to identify the parties in financial transactions.
When does an Australian company need an LEI?
OTC derivatives in Australia. Since 21 October 2024, the ASIC Derivative Transaction Rules (Reporting) 2024 require an LEI for every company that is a counterparty in a reportable OTC derivative trade, for example an interest rate swap or an FX forward.
Trading in the EU or UK. Since 3 January 2018, MiFIR applies the "no LEI, no trade" rule: a company that trades on European markets or through an EU or UK broker must have an LEI.
Bank and broker requirements. Many banks and brokers ask for an LEI when they onboard a company client, even where no law requires it.
How to get an LEI code for your company
LEI codes are issued by GLEIF-accredited LOUs. Australia LEI is an official Registration Agent: we collect and check your company data, and our partner LOU issues the code.
Our database is connected to the Australian Business Register. This lets us check and update your company data automatically, and keep your record in the GLEIF database in line with the register.
1. Complete the application form on our website. We check the data against the Australian Business Register and other sources.
2. Pay by credit card or bank transfer. We send an invoice and a receipt that meet Australian accounting requirements.
3. After you submit the application, we e-mail you the invoice and a letter of authorization (power of attorney). Sign it and return it to us by e-mail.
4. We send the LEI code to your email.
It takes just 2 minutes to complete the application. The LEI code is usually issued within 24 hours of receiving the signed power of attorney.
How are LEI codes issued?
The global LEI system has three levels. This section explains the organisations behind LEI issuance.
1. Umbrella organisation
GLEIF, the Global Legal Entity Identifier Foundation
GLEIF was established by the Financial Stability Board in June 2014 to run the global LEI system. It maintains the Global LEI Index, the central database of all LEI records. GLEIF is a non-profit organisation with its head office in Basel, Switzerland.
2. Organisations which may issue LEIs
LOU, Local Operating Unit
An LOU is an organisation accredited by GLEIF to issue LEIs. LOUs collect the applicant's data, verify it against the national business register, and issue LEIs according to the GLEIF rules. Globally there are around 40 LOUs, and only a handful of them actively serve Australian companies.
3. Agents for LEI registration
Registration Agent
A Registration Agent helps companies get and maintain an LEI. It collects the client's data, checks it against the local business register, and passes it to the LOU in line with GLEIF standards. GLEIF introduced the Registration Agent role in April 2017 to improve data quality and make applying for an LEI simpler. Australia LEI is a contractual Registration Agent of a GLEIF accredited LOU EQS Group.
LEI code structure
An LEI is based on the ISO 17442 standard. A company receives one LEI, which stays the same for the life of the company. The code has 20 characters:
Characters 1 to 4: the prefix of the LOU that issued the LEI.
Characters 5 and 6: reserved, always 00.
Characters 7 to 18: 12 letters and digits unique to the company.
Characters 19 and 20: check digits that verify the code.
The first LEIs were issued in December 2012. You can find more information about the LEI system on the GLEIF website.
LEI renewal
An LEI is valid for one year. After each year it must be renewed for the next 12 months. Renew in good time: the process can take a few days. When an LEI is not renewed, its status in the GLEIF database changes to LAPSED, and banks and regulators may no longer accept it for financial reporting.
You can renew your LEI up to 2 months before its expiry date without losing any validity. The new 12 months are added to the current expiry date. For example, if an LEI is valid until 31 October 2026 and you renew it in September 2026 for 1 year, it will be valid until 31 October 2027.
Australia LEI monitors the expiry dates of our clients' LEIs and reminds you when it is time to renew. You can renew through the renewal form on our website. More information about LEI renewal here.
Companies apply for an LEI through a service provider, like Australia LEI. Companies cannot create or update records in the GLEIF database themselves. Each LEI is managed by one LOU, which can change the data on behalf of the company. As a Registration Agent, Australia LEI does this for you together with our partner LOU. If your LEI is managed by another provider, you can transfer it to us. Read more about transferring an LEI code to Australia LEI.
