Unlocking business potential with high-quality data: The role of the Legal Entity Identifier (LEI)

17 února 2025

Why data quality is critical to business growth

In today’s interconnected economy, organisations rely on accurate and reliable data to make informed decisions, ensure compliance and drive growth. High-quality data is not just a benchmark – it’s a strategic necessity. The Legal Entity Identifier (LEI) ensures transparency and trust in global business transactions. Anyone wishing to apply for an LEI number should know the data quality standards.

What is the LEI, and why is it important?

The LEI number is a unique identifier for legal entities involved in financial transactions. It promotes trust, reduces risk and improves regulatory compliance. Organisations that rely on LEI number registration can make their processes more efficient and increase their credibility in international markets.

A key component of the LEI system is the Total Data Quality Score (TDQS), which assesses the accuracy, completeness and reliability of LEI reference data. This score ensures that companies using the LEI can trust the integrity of the data.

What is the Total Data Quality Score (TDQS)?

The TDQS serves as a key performance indicator (KPI) for the data quality of the LEI. It evaluates 12 different quality criteria and ensures that the LEI reference data fulfils the highest standards regarding user-friendliness and interoperability. This KPI is crucial for companies applying for an LEI number, as it provides the consistency and trustworthiness of the data.

The TDQS is continuously monitored and updated based on industry standards. For example, in 2024, adjustments to the LEI data elements led to a short-term drop in the TDQS to 99.96, but this quickly stabilised as global data providers adapted to the new standards.

Advantages of high-quality LEI data for companies

Companies that rely on LEI number registration and high-quality data benefit from numerous advantages:

1. improved regulatory compliance

Using an LEI number ensures that companies fulfil regulatory requirements and avoid penalties. Many global regulators require LEIs to improve financial transparency and prevent fraud.

2. greater operational efficiency

High-quality data minimises inefficiencies and improves the automation of financial transactions. Companies can optimise compliance checks and save time and costs with a reliable LEI number.

3. greater market acceptance

A robust LEI application signals transparency and makes companies more attractive to investors, partners and financial institutions. This can lead to better financing opportunities and more stable business relationships.

4. risk minimisation

Data inconsistencies and inaccuracies can lead to financial and reputational risks. Ensuring high data quality through LEI number registration can prevent potential errors that could impact business processes.

How to apply for an LEI number

Companies wishing to benefit from an LEI number can go through the LEI application process in just a few steps:

1. completing the application form with accurate company details.

2. submit the required documents for verification.

3. receive the LEI number and utilise the benefits for financial transactions.

Conclusion: Turning data into opportunities

Investing in data quality is not just about complying with regulatory requirements – it opens up new business opportunities. Companies that apply for an LEI number gain access to a global ecosystem of transparency and trust. Whether you are a large corporation or a medium-sized business, LEI number registration simplifies transactions, strengthens compliance and improves credibility in international markets.

For businesses in the US and UK, now is the time to act. Secure your LEI number to prepare your business for the future.

________________________________________

Are you ready to apply for an LEI number?

Start your LEI number application today and benefit from improved data quality and transparency. Get your LEI now!