LEI is an abbreviation for Legal Entity Identifier. It is a series of numbers that identifies investors everywhere in the EU. Companies, foundations and funds have needed an LEI since the beginning of 2018 to trade in securities and derivatives in the EU. This also applies to cases where Danske Bank makes investments on behalf of a company, foundation or fund through a portfolio management solution. In the case of derivatives, a valid LEI has been required since 1 November 2017.
LEI is obligatory under new EU legislation
The purpose of the EU’s new MiFID II provisions is to increase the transparency of the investment market and offer investors better protection.
With the new EU provisions, all companies, foundations and funds must have an LEI in force by 3 January 2018. Otherwise they cannot trade in securities. In the case of derivatives contracts, a valid LEI has been required since 1 November 2017.
An LEI is also needed when Danske Bank makes investments on behalf of a company or institution.
LEI is an abbreviation for Legal Entity Identifier. It is a series of numbers that identifies company-form investors anywhere in the EU.
Obtaining an LEI is easy:
1.
Select the LEI issuer. See links below.
2.
Enter your information on the LEI issuer’s website.
3.
Pay the processing fee. The size of the fee is given on every issuer’s website.
4.
LEI issuer processes the application.
5.
Danske Bank will be automatically informed of the LEI and you do not have to send it to us.
6.
The LEI must be renewed annually.
LEI issuers
www.nordlei.org
www.prh.fi/en/leicodes
See all LEI issuers here.
MiFID – Markets in Financial Instruments Directive
The purpose of the Directive is to strengthen investor protection and improve the functioning of the markets.
Find out more
Also read: The MiFID II Directive, which came into effect on 3 January 2018, will introduce more comprehensive information on investments.
Questions and answers about LEIs
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What is an LEI?
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Why is an LEI necessary in order to trade in securities?
When all parties trading in securities and derivatives in the EU can be identified, the market can be monitored more effectively and it is easier to prevent market manipulation. This makes the investment market safer.
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What happens if a company or institution has not acquired an LEI by 3 January 2018?
If a company, foundation or fund has not acquired an LEI by 3 January 2018, it can no longer trade in securities or derivatives in a stock exchange.
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Where can I get an LEI?
LEIs are easy to obtain from any accredited provider such as the Finnish Patent and Registration Office or NordLEI at www.nordlei.org.
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My company already has an LEI. Do I have to do anything?
No, you do not have to do anything. You do have to remember to renew your LEI every year, however.
