Who Needs an LEI?

The short answer: any legal entity that transacts in the financial markets. The requirement comes from regulation, not choice.

The core principle

Since 3 January 2018, the EU's MiFID II framework has applied a rule often summarised as "no LEI, no trade": an investment firm cannot execute a reportable transaction for a client that doesn't have a valid LEI.

Typical cases

You generally need an LEI if your entity:

buys or sells shares, bonds or fund units;
enters derivatives contracts (EMIR reporting);
carries out securities financing transactions (SFTR);
acts as an investment fund, holding company or investment vehicle.

This applies to a large listed company as much as to an SRL, SA or even a non-profit (ASBL) investing its reserves. In certain cases a self-employed individual may also need one.

In Belgium, compliance with these EU requirements is supervised by the FSMA (the Financial Services and Markets Authority).

See LEI under MiFID II, LEI under EMIR and LEI for investment funds.