Organization : Chamber of Commerce
Type of Facility : Applying For Legal Entity Identifier LEI
Country: Netherlands
Website : http://www.kvk.nl/english/how-to-register-deregister-and-report-changes/legal-entity-identifier-lei/
KVK Legal Entity Identifier
To promote greater transparency in the financial markets, the G-20 asked the Financial Stability Board (FSB) to create a Legal Entity Identifier (LEI) system.
Related / Similar Service : Payslip TU Delft
This system will make it possible to identify the contracting parties to financial market transactions worldwide and make it easier for regulators to recognise possible systemic risks at an early stage. The ultimate aim is to better manage financial risks. The Chamber of Commerce issues LEIs in the Netherlands.
Issuing LEIs at the request of AFM:
The Chamber of Commerce issues and registers LEIs in the Netherlands. Permission for that activity has been given by the Netherlands Authority For the Financial Markets (AFM) and has been confirmed by the international supervisors. Supervising the mandatory use of LEIs in the Netherlands is the responsibility of the AFM and not an activity of the Chamber of Commerce.
Applying for and registering (pre-)LEIs:
By filling in the form you apply for a (pre-)LEI. The period between applying until issueing a (pre-)LEI will take about 10 working days. During January and February 2014 peaktimes exist. The processing time may take much longer.
For which organisations is a LEI mandatory?:
The LEI is to be used by all legal entities domiciled in the Netherlands that are subject to the reporting of derivative transactions under the European Market Infrastructure Regulation (EMIR) within the scope of the applicable regulatory provisions. The types of legal entities subject to reporting are specified in Articles 2 and 9 of the EMIR. You can find more information on this on www.afm.nl/trade-repositories-en.
Chamber of Commerce as Local Operating Unit for (pre-)LEIs:
In the Netherlands, the Chamber of Commerce has been designated a pre-Local Operating Unit (pre-LOU). As such, the Chamber of Commerce is responsible for allocating the so-called pre-LEIs. The pre-LEI is introduced in advance of the actual LEI itself. Once officially endorsed by the LEI Regulatory Oversight Committee (ROC), a pre-LEI will be globally accepted as a reporting identifier.
Once the LEI system has been fully established, the pre-LEI is expected to be converted into the LEI, without change of the codes. Both the pre-LEI and LEI are structured as per ISO Standard 17442. For now the pre-LEI suffices for reporting derivative contracts to a Trade Repository.
(Pre-)LEIs mandatory from the 12th of February 2014:
From the 12th of February 2014, all Dutch legal entities that trade in and/or own derivatives are obliged to use their (pre-)LEIs in reports to Trade Repositories.
Whether or not applying for a LEI?:
Practically it proves indistinct for some organisations whether or not the LEI is mandatory for them. If this situation occurs we advice you to consult your bank or financial advisor. The moment you apply for a LEI a once-off application and registration fee is applicable. If it turns out to be that there is no obligation of a LEI these fees could have been avoided.
Transferring (pre-)LEIs:
A few Dutch entities have registered their (pre-)LEIs abroad. Now that the the Chamber of Commerce has been designated a pre-Local Operating Unit (pre-)LOU and the systems for issuing have been fully realized and approved, existing (pre-)LEIs can be transferred to the Chamber of Commerce. By filling in the transferform you apply for a transfer of your (pre-)LEI.
Fees:
The Chamber of Commerce has tuned its fees with the Ministry of Economic Affairs according market conditions. The level of our fees is comparable with foreign LOUs. The Chamber of Commerce has no profit-making purpose therefore the fees are made up break-even. Part of the fees must also be transferred to the organization that will be responsible for the worldwide oversight on LOUs. More information on fees?
See the FAQ’s. The fee for registering a (pre-)LEI in the Netherlands is made up of two components:
** A once-off application and registration fee of € 150,- (ex. VAT);
** An annual fee for the following years (not a calendar year) of € 100,- (ex. VAT).
The fee for transferring a (pre-)LEI to the Chamber of Commerce amounts € 100,- (ex. VAT). In fact the transfer itself has not to be paid, but the next annual fee. For example: your LEI has been issued on the 1st of February 2014. The LEI period than will expire on the 1st of February 2015. If you choose for a transfer you pay € 100,- (ex. VAT) which means your LEI is prolonged until the 1st of February 2016.
Billing:
After submitting your application for a LEI you will receive an invoice. Only after receiving your payment the Chamber of Commerce will issue and register your LEI. Every year you will automatically receive the invoice for the annual fee.
Registration of branches and other legal entities:
Dutch based branches of companies which are not based in the Netherlands themselves, can also apply for a (pre-)LEI from the Chamber of Commerce. However, the Chamber of Commerce issues (pre-)LEIs exclusively to legal entities registered as Dutch legal forms in its Business Register. It is therefore mandatory for these branches to have a registration of a Dutch legal form in the Business Register. Legal entities which are not registered in the Dutch Business Register are not allowed to request a (pre-)LEI. These entities have to apply to another pre-Local Operating Unit.
For more information:
You can find more information on this on www.afm.nl/trade-repositories-en. Questions about the application for a LEI or its registration? Read more in the FAQ. If your question is not answered there feel free to send your e-mail to lei@kvk.nl.