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 in 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 any 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’ll also be able to be identified in any jurisdiction. When legal entities enter a reportable financial transaction, an LEI will need to be quoted in order for it to be processed.
Why do trusts need an LEI?
As per the EU Directive MiFID II that came into effect from 3 January 2018, certain entities such as charities and trusts are now required to acquire an LEI number in order 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 number.
If a trust does not obtain an LEI, then trustees will not be given access to services from investment firms. Since they cannot enter any reportable financial transactions without quoting an LEI number, 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 that are 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 UK, 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 also help you renew your LEI number as required so that it’s in no danger of expiring. We also offer LEI transfer services if your code is currently being managed by another service provider. This transfer process can take up to 7 days, but you’ll be able to take advantage of our full suite of 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 simple 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.