New Legal Entity Identifier (LEI) Regulations for Insurers and Loaners
For several years now, the Legal Entity Identifier (LEI) code has been the key measure for improving the quality and accuracy of financial data systems. It has helped to reduce financial risks in the global crisis as well as speed up the data validation process for financial service providers. The LEI code is a 20- character unique identity code assigned to all entities who are involved in any financial transactions.
As advised by the Financial Stability Development Council, Sub-Committee (FSDC-SC), new Legal Entity Identifier regulations are going to apply.
1. All insurers shall obtain LEI as of July 31st for reasons mentioned above.
2. All insurers shall inform their corporate borrowers with total exposures of Rs.50 crore and more to obtain LEI and provide it to them on or before June 30th, if they haven’t done so already.
3. Borrowers, who do not obtain LEI by June 30th, 2020, will no longer be granted renewal/ enhancement of credit facilities by insurers.
4. New loan proposals will not be sanctioned by the insurers without valid LEI information.
5. Insurers have to keep records of their borrowers’ LEI codes and specify while reporting the transactions executed with such corporate borrowers.
The best option for requesting an LEI in India is with LEI Register. We offer the lowest cost (prices starting from ₹ 2980/ year) as well as seamless company data autofill and same-day receival of the LEI.