LEI codes are always valid for one year, after which they will need to be renewed. This is to ensure that the entity data is up to date and of high quality. Accurate and valid data contributes towards the transparency and trustworthiness, that is the goal of the Global LEI System.
If an LEI code is not renewed in time, its status in the GLEIF database changes toLAPSED.A lapsed LEI code restricts the entity's access to international markets and is essentially the same as having no LEI code at all.
Renewing the LEI code in time provides peace of mind to both you and your financial partners - the company information is always up to date and can be safely relied upon.
The LEI renewal process
The LEI code renewal process is very similar to the registration process. An application needs to be filled out and submitted to a LEI service provider. The renewal application is even simpler than the registration, because all company data already exists in the GLEIF database and will be populated to the application form, once the LEI code is entered. If the LEI code is not known, the company name can also be entered and the system will suggest suitable options.
The renewal provides an excellent opportunity to change the LEI data if necessary. If the entity information - address, authorised persons, Level 2 data or any detail has changed, it should be submitted with the renewal application. The change in data will be validated against the relevant business registry or provided documents. Therefore - if the entity data has not yet changed in the business registry - the LEI data cannot be changed either.
It is possible to start the renewal process as early as 60 days prior to the LEI expiration date. It is recommended to complete the application as early as possible, in order to keep the LEI code from lapsing while the renewal is in progress. LEI Lookup reminds all its customers via email 30 days prior to their LEI code expiry date to complete the renewal.
How long does it take?
The LEI renewal process can be completed rather quickly, especially when there are no changes in the entity data. In these cases the renewal usually does not take longer than a couple of hours.More time should be allowed in case the entity is not listed in a business registry (e.g. Trust, Fund) and changes are required to the LEI data.
If the LEI code needs to be transferred from one LOU's management to another, the process can take a couple of days, up to a week. This is due to the cooperation needed between the different LOU's.
The LEI Transfer process
LEI codes can be transferred between different LOU's. This provides the customer a choice between different service providers. There could be many reasons for wishing to transfer an LEI, for example prices, service quality or data accuracy. The LEI number remains the same during the transfer process - a new or different LEI code will not be issued. Since the LEI codes are standardised, the financial service providers cannot differentiate LEI codes based on their managing LOU's. Therefore, transferring LEI codes is a common process.
Since the transferring of the LEI requires cooperation between the 2 LOU's, the process can take up to 7 days to complete. The customer will need to confirm that they wish to complete the transfer to their original LOU.
LEI Lookup provides both - transfer only (free of charge) and transfer and renewal (renewal cost according to price list) of LEI codes. When applying for renewal with LEI Lookup, the renewal form will notify the customer that their LEI code is about to be transferred to a different service provider, in case the LEI is manage by another LOU.
The LEI renewal cost
The LEI renewal prices with LEI Lookup are exactly the same as initial registration fees, however other LEI code providers can price these two services differently.
LEI Lookup additionally provides an opportunity to renew the LEI for 3 or 5 years, instead of one. The multi-year package provides many benefits - but most importantly savings on the yearly LEI cost. A registration or renewal for one year costs €69, while when opting for a 5-year registration, the yearly cost would decrease to €50.
The benefits of a multiyear renewal
LEI Lookup offers the possibility to renew an LEI code for 1-, 3- or 5 years at a time. A multiyear renewal offers several benefits:
- No need to worry about the annual renewal - LEI Lookup will be responsible for the timely renewal of the LEI code. The entity data will be validated from the relevant business registry and any changes will be automatically applied. The customer will be notified once the multiyear period is ending and the LEI code should be renewed again manually.
- Reduction in costs - the yearly fee is significantly lower when opting for a multiyear registration or renewal
Since the LEI renewal can be a time-consuming process and could also be difficult to remember, the multiyear renewal is a great choice. Finding out that a LEI has accidentally lapsed in the middle of a transaction can be an unpleasant surprise. LEI Lookup would take care of the renewal and make sure that the LEI status will remain ISSUED throughout the selected period.
