Can your Legal Entity Identifier be transferred to a new service provider? You’re not alone. This is a common question among businesses looking to switch their LEI issuer for various reasons, including better service, lower costs, or streamlined management. The good news is that transferring an LEI is possible and straightforward.
LEI Register is essential for any business involved in the financial market. Explore the transfer process, benefits, and what you must consider before moving. Comprehending these facets helps facilitate an informed choice and guarantees a seamless shift. So, let’s explore this comprehensively and answer your questions about transferring an LEI to a new service provider.
What is an LEI?
- Definition and Purpose: A Legal Entity Identifier is a unique 20-character code used globally to identify distinct legal entities participating in financial transactions. It helps improve transparency and reduce risks in the economic system.
- Who Needs It?: Any organisation that engages in financial transactions or needs to report to financial regulators requires an LEI. This includes banks, investment funds, and various other legal entities.
- How are they Issued? The Global Legal Entity Identifier Foundation-accredited Local Operating Units (LOUs) are responsible for issuing these. These LOUs must issue and keep these legal entity identifier up to date.
Reasons for Transferring an LEI
- Better Service: Some service providers offer superior customer support and additional features that may be available with a different provider.
- Cost Efficiency: Transferring to a new provider can save costs if the new provider offers more competitive pricing for identifier registration and renewal.
- Consolidation: Organisations managing multiple identifiers might find consolidating all legal entity identifiers under one provider convenient for easier management and oversight.
How to Transfer an LEI
- Check Eligibility: Ensure the current identifier is active and not due for immediate renewal. Also, verify that GLEIF accredits the new service provider. Confirm that all compliance requirements are met before proceeding.
- Request Transfer: Contact the new service provider and submit a transfer request. This usually involves providing your LEI and some basic information about your organisation.
- Authorise Transfer: The new service provider will initiate the transfer process with your current provider. You may need to authorise this transfer by email or a written document confirming your request.
- Confirmation: As soon as the transfer is complete, you will receive a confirmation from the new service provider. Your identity remains the same, but the new provider now controls it.
Considerations Before Transferring
- Service Provider Reputation: Research the new provider’s reputation, including reviews and feedback from other clients.
- Cost Implications: Compare the costs of registration, renewal, and additional services between the current and new providers.
- Data Accuracy: To prevent inconsistencies, ensure all of the information about your legal entity identifier is current and accurate before starting the transfer. Maintain up-to-date records to reflect any modifications to the information about your firm.
Transferring an LEI register to a new service provider is a viable option for many organisations seeking better service, cost efficiency, or simplified management. The process is relatively simple and involves checking eligibility, submitting a transfer request, authorising the transfer, and receiving confirmation. If you’re contemplating transferring your LEI, take the time to research and make an informed decision.