Expect more from your LEI provider

We have had a lot of talks with hedge funds, banks, and asset managers, all of whom lost their LOU when GMEI exited the LEI space. The majority of these companies signed up with GMEI several years ago because they used DTCC as their clearing firm.

They have had major frustrations with GMEI due to poor communications and ditto customer service. As a consequence, they have become used to having zero expectations of their LEI administrator. In our opinion, this is not the way it’s supposed to work. You should be able to expect a lot more from your LEI provider.

What to expect from a good LEI provider

An LEI provider should save you time and trouble by offering the following:

• PLATFORM aggregating all your LEI codes across geographies and jurisdictions - Can your LEI provider handle all jurisdictions? Some providers may be able to register a company, but not funds in a jurisdiction.

  
  

• QUALITY CUSTOMER SERVICE - Can you pick up the phone and contact your LEI provider directly?

• SECURE AND INTUITIVE WEBSITE - Is your information safe? Has your provider passed the proper security checks?

• PROPER DATA QUALITY - Is your fund set up correctly? Has your provider entered your fund management entity, your master-feeder structure, and your umbrella structure?

• CONSOLIDATED WATCHLISTS - Is there an easy way to see all your LEI codes no matter where they are serviced from?

• NOTIFICATION SYSTEMS - Are there ways to notify everyone who needs to know about the LEI codes (e.g., fund administrator, accounting department and AIFMD reporting system)?

• FAST TURNAROUND - Can your LEI provider get your LEI codes transferred or processed fast? Do they have the infrastructure to keep up with your business?

Compliance tools meant to be a value-add

A good LEI provider keeps investing in its technical infrastructure, so they can provide all these things - as well as respond to specific requests. So you should not abstain from asking and expecting more from your LEI provider. After all, compliance tools are supposed to be a value-add, not just a must-have.

Please contact us here, if you have any questions or need help.