LEI for Trusts
A Legal Entity Identifier (LEI) is a unique reference code that is required by all legal entities if they are involved with financial transactions and operate within the financial system. LEI data is available from a single database that helps to improve global entity identification. This includes companies, charities, and also trusts. Without an LEI, an entity will not be able to trade on financial markets in the United Kingdom, as the London Stock Exchange requires all legal entities to obtain an LEI.
What is the purpose of obtaining an LEI?
An LEI allows anyone to identify your trust and examine information such as parent organizations, legal addresses, and other entity names. This offers transparency when engaging in any financial transactions between corporations. It also enables regulators and organizations to manage counterparty exposure, and you can be identified in any jurisdiction. When legal entities enter a reportable financial transaction, an LEI must be quoted for processing it.
Why do trusts need an LEI?
As per the EU Directive MiFID II that took effect on 3 January 2018, certain entities such as charities and trusts are now required to acquire an LEI number to continue trading and investing operations in UK financial markets. The LEI data will be used to provide more transparency during financial transactions. Bare trusts are exempt from this rule and will not be required to obtain an LEI code.
If a trust does not obtain an LEI, trustees will not be given access to services from investment firms. Since they cannot enter any reportable financial transactions without quoting an LEI code, investment firms will refuse to offer services to a trust that does not have an LEI.
How do trusts obtain an LEI?
A trust is responsible for obtaining its own LEI identifier and renewing it when required. This can be done by contacting companies accredited by the Global Legal Entity Identifier Foundation (GLEIF) such as LEI Register.
LEI Register offers a wide range of different services to help trusts register their own Legal Entity Identifier. As one of the fastest registration agents in the world, we can help you receive your LEI in just a couple of hours instead of making you wait days. In addition to simply registering your trust, we can help you renew your LEI code as required so that it’s in no danger of expiring. We also offer LEI transfer services if another service provider manages your code. This transfer process can take up to 7 days, but you can use our services.
With the importance of obtaining an LEI for your trust, it’s vital to have a reliable and trustworthy service to manage yours. LEI Register receives thousands of applications every week thanks to our affordable and straightforward pricing structure, and our fast turnaround times make it convenient even for newly-established trusts. Feel free to get in touch for more information or start your LEI application today with our online form.