LEI for Investment Funds
For investment funds the LEI is especially important, since their activity is inherently tied to the financial markets and regulatory reporting.
Why funds need an LEI
Funds buy and sell securities, enter derivatives contracts, and report those transactions under MiFID II, EMIR and SFTR. In each case the fund (and often its management company) must be identified by a valid LEI.
Structural considerations
Fund structures can be more complex than an ordinary company — with sub-funds, management companies and multi-level ownership. This can mean several LEIs are needed and extra attention to Level 2 (parent-relationship) data. (See LEI reference data and Level 2 data.)
The Belgian context
In Belgium, supervision of investment funds and their managers is carried out by the FSMA (the Financial Services and Markets Authority).
See also LEI for trading stocks and securities and Who needs an LEI?