LEI for Sole Traders and Individuals
The LEI is primarily intended for legal entities, but in certain cases it can apply to self-employed individuals carrying out an economic activity.
The basic principle
An LEI identifies legal entities in the financial markets. Most individuals acting privately don't need one. However, where a person acts in a business capacity and enters transactions that require LEI identification, the requirement can apply to them too.
When it may be needed
A self-employed individual (sole trader) may need an LEI if they:
- trade securities or derivatives in a professional capacity;
- are a party that must be identified by an LEI under MiFID II or EMIR.
If you're unsure whether your activity requires an LEI, your broker or bank will usually indicate whether it's requested.
See also Who needs an LEI? and LEI for SMEs.