The entities are obliged to identify themselves with the Legal Entity Identifier code (LEI)
when issuing book-entry securities and at realisation and reporting of certain financial transactions. In the Slovak Republic the LEI codes are allocated by Centrálny depozitár cenných papierov SR, a.s. (CDCP). Assigned LEI code ensures unique identification of entities worldwide and high quality of referential data.
“On the web site of GLEIF it is possible to find out any entity which was allocated the LEI code worldwide. The LEI code will be allocated only to verified and really existing entities. Using of the code is beneficial for the companies as it also helps to decrease expenses and enhance risk management. The entities interested in having allocated the LEI code turn to CDCP as a Local Operating Unit allocating the LEI codes, as the code is required by bank or stock broker for execution of certain financial transactions and further related processes,” explained Eduard Kalina from the Issue Department in CDCP.
The LEI code is utilised by the European regulators overseeing correctness of reports from companies providing financial services and to aggregate data from multiple markets. Namely the LEI code is only data specification enabling, in global scale, unique and permanent identification of entities active in financial markets. Application of the LEI code is still increasing. Currently linking of the LEI code with international code ISIN identifying financial instrument is envisaged. The aim of this initiative is to increase risk transparency with respect to investing in securities by linking of the issuer with the securities.
“Entities identified by the LEI code and information on securities issued by respective entity shall be published on websites of ANNA – Association of National Numbering Agencies and GLEIF foundation,“ added Jana Závodná from the Issue Department.
To ensure that entity with allocated LEI code is credible, its LEI code has to be valid. In case the LEI code is expired, bank shall reject required transaction. In such case it is necessary to renew the LEI code.
Jana Závodná advised to check validity of the LEI code, “We recommend the clients to request for regular renewal of the LEI code in advance of its expiration. CDCP shall advice the client on expiration of code validity by sending of an instruction for renewal of the code to the e-mail address specified by the client 6 weeks before expiration of the LEI code.”
For the purpose of the LEI code validity renewal and update of data on a company CDCP allows the entities to maintain their LEI code on-line at web site of CDCP. The entity can renew validity of allocated LEI code via account on web site of CDCP dedicated to LEI code. The account is established for the client automatically at the moment of placing of the request for allocation of LEI code. CDCP still keeps the fee which is charged for allocation and renewal of the LEI code on the same level. CDCP charges fee of 45.00 EUR for renewal of the LEI code; renewed LEI code is valid for one year. Method how to apply for LEI and other conditions of allocation, renewal and transfer of LEI codes and further information and documents relevant to the request for allocation of LEI and its maintenance can be found on CDCP web site.
The Global Legal Entity Identifier Foundation (GLEIF) was established in June 2014 as nonprofit organisation overseen by the LEI Regulatory Oversight Committee, acting as operational arm of the global LEI system for implementation and utilisation of the LEI. The GLEIF grants authorisation and monitors Local Operating Units involved in the Global LEI System (GLEIS).
Regulatory Oversight Committee (ROC) is group of more than 60 public authorities from more than 40 countries (national regulators) established in January 2013 to co-ordinate and oversee a worldwide framework of legal entity identification – the Global LEI System. On 30 January 2018 Centrálny depozitár cenných papierov SR, a.s. has obtained a certificate from GLEIF, which confirms the successful accomplishment of accreditation process of CDCP as a Local Operating Unit for issuing the LEI codes to legal entities from Slovakia and the Czech Republic.
Centrálny depozitár cenných papierov SR, a.s. is member of the Association of National Numbering Agencies (ANNA) from the year 2014. ANNA is global association comprising of local registration agencies providing for allocation, registration and propagation of identification codes or numbers allocated in compliance with respective international standards, e.g. ISIN, CFI an FISN codes.
ISIN is 12 digit alphanumeric code for identification of securities and financial instruments issued in compliance with standard ISO 6166 International numbering system for identification of securities. ISIN code in compliance with the standard ISO 6166 and ANNA Guidelines is assigned by the National Numbering Agencies (NNA) associated in ANNA.
