LEI code: what is it for, how to get it easily and why it is important to always renew it

In collaboration with: InfoCamere The Italian production system is largely made up of micro, small and medium-sized enterprises (MPMIs). At the end of September this year, the companies registered with the Chambers of Commerce were 6.1 million. 97% have fewer than nine employees and, in most cases, they are organized as family businesses. In a rapidly changing scenario such as that triggered by the pandemic, the limited size and the lack of structuring make them often fragile subjects in the face of more robust foreign competitors, especially in terms of financial instruments that are now indispensable to grow or even simply consolidate one’s own market position. Whatever the activity he carries out, in fact, the theme of financial resources – to plan the start-up of a startup, the expansion of a warehouse or the planning of an investment – is an integral part of the daily choices of an entrepreneur. To help Italian SMEs to approach with more confidence the opportunities offered by capital outside the family or business perimeter – avoiding the risks associated with the diffusion of “toxic” financial instruments – in recent years there has been a strengthening of the “immune system” to guard of global finance, resulting from the collaboration between international institutions, national governments and the banking system with a strong investment in transparency. In the wake of the Great Crisis triggered by the subprime mortgage bubble, in a few years the world authorities have defined new rules to contain market abuse and financial fraud and thus ensure greater stability of the system, to the benefit of the development of markets and An important step to achieve these objectives was the introduction, already in 2014, of the LEI Code (Legal Entity Identifier) ​​which – based on European rules (the MiFID II directive and the MiFIR regulation) – from January 2018 it then became mandatory for any legal entity operating on the financial markets. For example, a company that, through its bank, intends to obtain financing based on investment funds, bonds, shares, derivative financial instruments or other innovative financial instruments, such as those that look to sustainability and social responsibility. What is the LEI code? The LEI code is a unique identifier, based on an international standard and consisting of 20 alphanumeric characters, which summarizes all the necessary information (including tax code, name, address and data relating to the structure of the company ) to identify with certainty the legal entities – with the exception of natural persons – involved in financial transactions. Managed globally by a non-profit foundation called Gleif (Global Legal Entity Identifier Foundation), the LEI code is issued by specially accredited entities (the Lou, Local Operation Units) and must be renewed every year in order to continue operating in the markets in cases where it is required.In Italy, the first operator for codes issued and managed (over 130,000) is InfoCamere – the company of the Chambers of Commerce for digital innovation – which has been offering the issue and renewal of LEI codes since 2014 InfoCamere is an all-Italian Lou that guarantees a highly reliable service based on direct connection with the data of the Italian Business Register, the official registry of all the Italian companies that it manages on behalf of the Chambers of Commerce. Quality and transparency from the Business Register Thanks to this link, the procedure for verifying the applicant’s data is very fast and certified, and allows you to obtain the LEI code in a few hours. Once activated, moreover, for subjects registered in the Business Register, the code will also appear in the search and in the chamber certificate. An additional advantage that allows third parties – starting from banks and financial institutions – to directly verify the existence and validity of the LEI code for a specific legal entity. But also a further guarantee of transparency and alignment of the data of the LEI holder with those available on the GLEIF website. Who must have it The LEI code is mandatory for all legal entities holding securities accounts with financial intermediaries and can be requested by all subjects registered in the Business Register, the sectors of Italian investment funds managed by companies registered in the Business Register, pension funds Italians and all entities other than the above that reside in Italy and are subject to the reporting obligation. How to get it Obtaining an LEI code from InfoCamere is simple, fast and convenient. The procedure consists of a few steps and takes place completely online. Just register on the InfoCamere LEI portal, and then access the Reserved Area using credentials or digital identity tools such as Cns (the National Service Card) or SPID (Public System for Digital Identity), which can be easily obtained by contacting your own Chamber of Commerce. It should be noted that, using these tools, it is not even necessary to digitally sign the required documentation, with further savings in the time required to obtain the LEI code. In the case of a company that uses SPID and pays by credit card, the procedure can be completed in just 5 minutes. The cost of activating the LEI code with InfoCamere is € 69. The payment methods available, all online, are designed to meet the different needs of the requesting subjects: in addition to the possibility of using a credit card, InfoCamere – unique in Italy – also allows you to use a MAV bulletin thus making payment fast. and error-proof, thanks to the unique identifier associated with it. How to renew it From the portal it is just as easy to renew the LEI code on an annual basis. Thanks also to a system of automatic notifications – both sent by e-mail (or PEC for those registered in the Business Register) and made available in the reserved area – well in advance of the deadline, you avoid the risk of finding your own code. She is no longer valid. In fact, it should be remembered that an expired LEI code can no longer be used for the purposes of financial transactions subject to reporting obligations. In addition, at the time of renewal, companies will find their data already pre-filled in the InfoCamere LEI portal, updated on the basis of any changes communicated to the Chamber of Commerce since the last issue of the code. They can thus proceed even faster and easier to verify the information present and confirm the request. The cost of the annual renewal is € 65 without the need to adhere in advance to multi-year renewal plans. It is also always possible to renew an LEI code issued by another operator with InfoCamere, upon request to transfer the code. The portability of an LEI code from another manager is in fact provided for by the regulation of the LEI system and does not involve any burden for the applicant. In this way, by transferring the code to InfoCamere LEI, it is possible to immediately take advantage of the quality and reliability offered by the first operator in Italy for managed LEI codes. Massive requests for LEI codes Finally, InfoCamere has developed the InfoCamere LEI Business web service for all those interested in distributing LEI codes to its customers, to massively manage the activation and renewal of multiple LEI codes. Dedicated to banks and large intermediaries, the massive service allows you to operate in a simple and efficient way thanks to customized and easily integrated solutions, always maintaining high quality levels and guaranteeing rapid delivery times.