LEI renewal process
A typical LEI registration is only valid for a single year. As soon as a year passes, your registration status will swap to LAPSED which means you haven’t renewed it. Effectively immediately, you’ll be unable to take part in certain financial transactions and access to various markets will be restricted. As such, it’s a good idea to always keep track of when your LEI expires and when you should be renewing it.
If you’re looking to switch your LOU management to us, then don’t hesitate to get in touch with us today if you have more questions. Alternatively, you can start the LEI renewal process if you have the relevant information with you. You’re also welcome to register for a new LEI with us if needed, but do keep in mind that duplicate entries are removed from the global database and you should pick the renewal option instead if you already have an LEI.
Your LEI information will already be saved
Renewing your LEI is convenient because all of the previous information you entered will be automatically filled in. If needed, you’ll have many opportunities to change any of the information on your LEI entry. This is ideal if you’ve made some changes to your business such as a different address, or if you need to change the parent and child entities that are associated with you. If you’re unsure if you need to make any changes, don’t hesitate to speak to us directly and we’ll be glad to assist you during the LEI renewal process.
Keep in mind that your LEI will be annulled if the information you entered is incorrect. It’s the duty of the LOU and the GLEIF to check the information you submit against existing records to ensure there are no inaccuracies. If you fail to make an accurate data update, then it could cause delays in the system and ultimately stop you from renewing your LEI in a timely manner.
The cost of renewing an LEI
You’ll be happy to hear that renewing your LEI costs no more than what you paid to register for one in the first place. In fact, most LOUs have an LEI renewal fee that is the same as their initial registration fee. This means you won’t be paying any more or less. However, there may be exceptions depending on the service you pick to help you renew your LEI. Some LOUs charge different amounts of money, and it’s up to you to decide which service provider offers a better service for the price.
Most LOUs will also offer discounts if you apply for a multi-year package. With us, a single year costs 69€ while a five-year contract costs star from 50€ per year. This is an excellent saving and also offers a number of other benefits that we’ll explain below.
What comes next?
Once the LEI renewal process has been completed, the application will be submitted within 24 hours and your LEI registration status will once again be ISSUED. This will let all other legal entities and regulators know that your company has a valid LEI.
You don’t need to do anything more, but you may want to consider registering for automatic renewal if you’ve only chosen a single year of service. This can save you a lot of headaches in the future and will guarantee that your application is submitted well ahead of time so that there are no breaks in your LEI status.
When is my next LEI renewal?
It should take exactly one year before your LEI expires. If you’re unsure when you registered then you may want to consider checking your LEI entry because it shows the exact date that you registered your application into the GLEIF system.
The benefits of LEI annual renewal
Many companies prefer to renew their LEI for just a single year. However, this can be incredibly inefficient in terms of cost and if you forget to submit the renewal application, it can cause delays in your operations. This can be devastating in certain cases, so it’s usually best to submit a renewal in advance to ensure there is no break in your registration status.
However, a much better way to approach this is to use the LEI annual renewal services that your LEI Lookup offers. This is essentially committing to multiple years of LEI renewals and it comes with a number of benefits.
- No more accidentally forgetting to renew. This can ensure business continuity and upholds your reputation as a professional legal entity.
- Reduced renewal costs. Much lower fee for registration and renewal when you commit to multiple years of service. This can end up saving you a lot of money especially if you plan to keep your business around for multiple years.
- An annual reminder to update information. Failing to update your business’s LEI data can result in delays and troubles with other legal entities that you trade and engage with. An annual renewal can be treated as an annual reminder to keep your information updated
Since the LEI renewal process is so simple, it’s beneficial to subscribe to a multi-year renewal service so that you never have to think about renewing your LEI again. It’s inexpensive considering all of the options it opens up for you, and it guarantees that your LEI registration status will always be ISSUED so that businesses never shy away from entering a transaction with you and your legal entity.
Businesses should always keep their LEI valid
Renewing your LEI ensures that businesses will continue working with you with confidence. It also ensures that you have full access to any financial market that you were previously a part of. If you suddenly lose your LEI due to it expiring, then you’ll be expected to renew it before you can take part in any further transactions. If left for too long, your legal entity may be completely restricted from certain markets or trades.
The renewal process also gives you an opportunity to edit any information that is attached to your code. This helps ensure that all of the data you’ve given is correct and up to date. This ensures that companies have peace of mind and full transparency before entering into a transaction with you. If there are any issues, the Global Legal Entity Identifier Foundation (GLEIF) will step in and switch your registration status to ANNULLED. This effectively invalidates your LEI registration and must be fixed immediately by contacting your Local Operating Unit (also known as a LOU, LEI service provider or LEI registration agent) and letting them know about the situation.
If your LEI is soon to expire or has already been lapsed, then you should get in touch with us to start the renewal process. One of the convenient things about the global LEI system is that you can work with any LOU to renew your LEI. It doesn’t need to be with the same company, but there might be a small delay in transferring the management of your LEI to a different service provider. This means you can get in touch with us to help you renew your LEI even if you registered with a different provider.