What is the LEI code?
The LEI code (Legal Entity Identifier) is a 20-character alphanumeric code that univocally identifies Legal Entities worldwide. The LEI is unique, permanent, consistent and portable for each entity or platform with which it is operated.
Who has to have the LEI code?
Due to MiFIR Regulation (EU Regulation No. 600/2014 of 15th May on markets in financial instruments and amending EU Regulation No. 648/2012), all legal persons who operate in financial markets need it. For example, banks and financial companies, listed entities, entities that issues shares, debt or securities, entities that trade stocks or debt, and those that buy or sell such financial assets or securities.
When do you have got it?
Two key dates:
November 1st, 2017: customers that operate with derivatives (either organized markets or OTCs) and exchange securities.
January 3rd, 2018: customers that operate with equities (eg. Shares, ETFs, warrants) and fixed income securities (eg. Bonds, promissory notes, etc.)
How it can be obtained?
For Spanish Entities, you need to ask for it in the “Registro Mercantil” by filling in a series of data relating to the entity in an application through the public website which must be recorded, and you will be provided an application document that must be signed by the representative and handed in to the Registro Mercantil.
The maximum term of obtaining it are 15 days, and it has to be renewed annually. The cost are 100 Euros + VAT for the emission and 50 euros + VAT for the annual renewal.
To do it correctly we recommend that you go to an experienced tax advisor like GM Tax.
