The digital signature has been introduced for several years in order to prove the validity and authenticity of a digital document. Over time it has reached unexpected levels of use. And so, the digital signature is an increasingly indispensable tool in the world of work. And it guarantees several advantages for companies, to which it recognizes a Legal Entity Identifier.


The Legal Entity Identifier (LEI) can be described as a unique code consisting of 20 alphanumeric characters. In compliance with the international standard ISO 17442, it is used for the purpose of identifying parties to financial transactions around the world in all markets and legal systems. The LEI is therefore a means by which to standardize the way in which counterparty is identified in financial transactions. Its purpose is to improve risk measurement and monitoring and to more efficiently support compliance with reporting requirements. A legal entity can only be assigned one LEI internationally.


The LEI can be used by all legal entities that have to carry out financial transactions. It can therefore be used when buying or selling financial instruments (shares, bonds, warrants, government bonds and derivatives). It therefore represents a godsend for registered companies, including registered subsidiaries, funds, non-profit organizations, government agencies and organizations, and branches The LEI cannot be applied for for individuals or for operational divisions. These entities must use the LEI of their parent organization.


Pursuant to the MiFID II Directive (Markets in financial instruments directive) for example already implemented in many countries such as Italy, and in compliance with the MiFIR (Market in financial instruments regulation) regulation on the subject of financial instrument markets, there are obliged to possess the LEI. Therefore, all legal entities that have opened a securities account with financial intermediaries must apply for an LEI code.

The legal entities that are obliged to comply with these provisions are those registered in the Business Register, all the national branches of foreign companies. But also investment funds managed by companies registered in the Business Register, pension funds and all entities other than the above that are subject to the reporting obligation. For any type of information on the LEI, it is only necessary to deepen one’s knowledge through competent companies such as InfoCert, which also offers customers this useful service.

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