LEI service providers
A LEI service provider is a company that offer and provide a LEI code registration service. However, the company doesn’t necessarily issue the LEI code itself. Instead, each service provider is linked to a Local Operating Unit, a LOU, and/or a registration agent. LOUs are the ones who issues LEI codes in accordance with the ISO 17442:2012 standard. These are also the units who upload LEI code information to GLEIF, the organization behind the LEI system.
What does a LEI service provider do?
The main task for a LEI service provider is to offer companies, organizations, foundations and other client’s access to LEI registration. They simply provide a platform for registration, renewal and transfer of LEI codes – in order for companies and other parties to carry on with safe transactions in the European securities market. A LEI number is necessary for all legal entities that buy and sell securities in Europe. Due to this, it is important that registration services are easily accessible in the countries where LEI codes are mandatory.
Additionally, LEI code service providers are also responsible for informing legal entities about the LEI code system, as well as simplifying the registration process. This responsibility also includes helping customers with any issues or questions.
As a service provider for LEI, you must also provide secure payment solutions linked to the registration and renewal tools. LEI providers must also be possible to collect data from relevant authorities such as the HMRCand Companies House, as well as validating that the submitted information is correct.
UK registration agents
There are only a limited number of LEI service providers available in the UK. Some of them are official registration agents, which means that they have a direct connection to a specific LOU. Some examples are British LEI, UKLEI, Get LEI and Arctic. Which LOU each official registration agent is affiliated with can vary, between LOUs such as RapidLEI, Bloomberg or GMEI Utility.
However, there is no need to be an official registration agent in order to provide a LEI registration service. A company can also choose to simply provide LEI by using a platform from an external registration agent. This is the case for LEI Certificate, since we offer LEI registration through the services of LEI Register. However, this doesn’t make the service offered any less reliable. The process is the exact same as if it would be if you contacted an official registration agent directly.
Important to compare services
As the entire LEI system is relatively new, it’s common to still be unsure about how LEI registration actually works. In the UK, there has been a common perception that only one agent is allowed to offer registration and renewal of LEI codes. This is not the case at all, but the misconception has led to a lot of companies paying unnecessary amounts for their LEI codes. All companies have the right to choose whichever LEI service provider you prefer in order to register, renew or transfer LEI codes.
The first service provider that entered the market charged high prices for their services, leading to the impression of LEI registration being very expensive. But the fact is that the fee that must be paid to GLEIF upon LEI registration is the same regardless of which registration agent you turn to. The remaining cost for registration and renewal is for administration – which means that there are a lot of money to be saved by comparing LEI suppliers. LEI Certificate offer LEI code renewal and registration at one of the lowest rates on the market. With our service, you can sign up for a 5-year deal at half the price compared to the market leading service provider.