The European Insurance an Occupation Pensions Authority have issued revised Guidelines on Legal Entity Identifier (LEI). These updates to the existing guidelines which provides guidance to national competent authorities by:
▶ Simplifying the identification of legal entities ensuring high quality data
▶ In order to facilitate and further promote the use of LEI as unique identification code for legal entities
▶ National competent authorities are expected to apply these revised Guidelines from July 1st 2022
▶ You can view existing and the original 2014 EIOPA guidelines here.
The LEI is a 20 digit unique ID code proposed by the Financial Stability Board (FSB) and endorsed by G20 at the 2012 summit. The purpose of the LEI is to provide a stadardised, global identification of companies participating in financial transactions.
In accordance with Article 16(3) of the Regulation (EU) 1094/2010, EIOPA issues guidelines and updates addressed to the competent authorities and financial institutions to establish consistent, efficient and effective supervisory practices, while ensuring the common, uniform and consistent application of the law.
The LEI was introduced in 2012 and EIOP Guidelines were first used in October 2014. From then up to 2010, EIOPA have issued multiple updates to its guidelines.
- 2020 ESRB Recommendations on identifying legal entities, which focussed on the LEI as a common identifier; and
- 2019 FSB Thematic Review on Implementation of the LEI, which listed some remaining obstacles which prevented wider LEI adoption.
The new guidelines go into effect from July 1st 2022. The updates contain broader use of the LEI in comparison the 2019 update. On top of insurance and reinsurance undertakings and Institutions for Occupational Retirement Provision, now relevant branches and intermediaries operating internationally are now included.
