How much does it cost to obtain an LEI?
The LEI issuer charges a fee for issuing LEIs and depending on issuer the cost varies. There is usually a cost for the application and then a yearly fee to renew the LEI code. The fee charged in SEK is typically in the range of SEK 750-1,500 as an initial fee and then a yearly fee to renew the LEI of SEK 500-1,000. Please refer to the different LEI issuers for exact pricing.
Why do I need an LEI?
If you are a client with us, you need to have an LEI in order to be able register and issue securities. This is due to the fact that Euroclear Sweden, as CSD, must collect LEI codes for companies and other legal entities which issue securities with us according to the EU regulation for CSDs, CSDR.
If your company is engaged in trading securities, you also need to apply for an LEI according to requirements in other regulations such as MiFID II/MiFIR to which banks and other financial institutions need to comply in their reporting to relevant authorities.
What is the purpose of LEI?
According to requirements in the new EU regulation CSDR, CSDs within the EU must collect their clients’ LEI codes since European financial supervisory authorities wish to register companies issuing securities in order to identify every individual organisation in all securities transaction reporting.
For Euroclear Sweden, this means that we report our clients LEI codes to the Swedish Financial Supervisory Authority.
As of 3 January 2018, companies buying and selling securities must also have an LEI, due to requirements in the EU regulation MiFID II/MiFIR which regulates transaction reporting of securities trading. Please contact your bank to find out more about LEIs and securities trading.
If you have additional questions about LEI codes, you can either visit Global Legal Entity Identifier Foundation’s website or email us at: email@example.com.