What is an LEI code and when do Australian businesses need one?

For many Australian businesses, the LEI only becomes visible when a transaction is delayed, an intermediary requests it, or onboarding is delayed because the company cannot be identified in the required format.

Australian LEI is an LEI registrar It works with EQS Group GmbH, a GLEIF-accredited LEI issuer, helping Australian businesses register, renew and manage their LEIs. Before looking at whether your company needs an LEI, it helps to understand what an LEI is and why it exists.

What is an LEI code?

LEI or Legal Entity Identifier is a 20-character alphanumeric code used to identify legal entities involved in financial transactions. It may apply to companies, funds, trusts, associations, public sector bodies and other legal entities, depending on the regulatory or commercial context.

The LEI system was introduced after the 2008 financial crisis, when regulators saw how difficult it could be to track which organizations were involved in a transaction. Large financial groups often operated through multiple legal entities in different jurisdictions and there was no consistent identifier connecting them. LEIs were created to solve this problem.

LEIs are based on the ISO 17442 standard and are managed through the Global LEI System. The Global LEI Foundation, or GLEIF, maintains the system and makes LEI data available through the publicly available Global LEI Index.

Each LEI record contains two layers of information. Level 1 identifies the organization itself: legal name, registered address, jurisdiction and registration authority details, if applicable. Level 2 indicates direct and ultimate parental relationships where reported. The LEI is not a beneficial owner record and should not be used in place of AML/CTF, KYB or UBO checks.

Who needs an LEI?

Originally LEIs were associated with financial regulation and market reporting. Over time, these have become applicable to a wider range of businesses, as banks, brokers, investors and international counterparties expect a standard way to verify legal entities.

In Australia, the most obvious use case is OTC derivative reporting. LEIs are at the heart of reporting obligations under ASIC’s Derivatives Trading Rules (Reporting) 2024. The reporting party must use the existing LEI for Counterparty 1, and if the trade is confirmed, the central counterparty is identified by its LEI. The 2024 Rules came into force on October 21, 2024, with additional changes effective October 20, 2025.

Australian businesses may be required to have an LEI when dealing with overseas brokers, investment firms, banks or trading platforms, particularly when transactions connect to markets in the EU, UK or other jurisdictions where LEIs are mandatory.

Your company may need an LEI in the following cases:

• In the case of reportable OTC derivative transactions under the ASIC Derivatives Trading Rules (Reporting) 2024, the Reporting Entity or Counterparty is 1;
• Trading financial instruments through a broker, investment firm or offshore platform that requires an LEI;
• is a managed investment scheme, super fund or other regulated financial institution regulated by ASIC or APRA;
• Works with foreign brokers, investment platforms or trading venues in jurisdictions where LEIs are mandatory; or
• A bank, financial intermediary, investor, regulator or foreign counterparty is required to provide an LEI.

If your business sells goods or services locally and does not interact with financial markets, you may not need an LEI today. Even so, as more institutions rely on verified asset data, having one readily available could reduce later disputes.

Why is the LEI important beyond compliance?

It’s easy to think of the LEI as just another regulatory requirement. In practice, this can also make it easier to identify, verify and incorporate into a company’s financial workflows.

When a counterparty, investor or financial institution searches for your LEI in the GLEIF database, they can see verified reference data linked to your legal entity and parent relationship information where relevant. This consistency can reduce engagement delays, support due diligence and strengthen trust in cross-border relationships.

How to get LEI?

LEIs are issued by GLEIF-accredited LEI issuers, also known as Local Operating Units or LOUs. The process is simple: The company submits its registration details, the issuer verifies them against official records, and the LEI is usually issued within one to two business days.

An LEI must be renewed every year. If renewal is missed, the status in the GLEIF database is “Past”. The identifier itself does not change, but the reference data is no longer current and some reporting, trading or engagement processes may not accept an expired LEI.

Australian LEI supports LEI registration and renewal for businesses in Australia; On business days when verification is successful, transactions are usually completed within 24 hours. Australian businesses can apply for LEI registration or renewal at: australyalei.com.