National Bank of Belgium Circular NBB_2022_17 on Legal Entity Identifier (LEI) Applicability

National Bank of Belgium
De Berlaimontlaan 14 - 1000 Brussels
Tel: 02 221 21 11 - Fax: 02 221 34 00
RPR Brussels (Enterprise Number) www.nbb.be

Circular
Brussels, 5 July 2022
Reference: NBB_2022_17
Your correspondent:
Vreven Ingrid tel. +32 2 22126 29 ingrid.vreven@nbb.be

Legal Entity Identifier (LEI)
Scope of Application

Insurance and reinsurance undertakings governed by Belgian law and their branches established in the European Economic Area (EEA);

Ultimate parent undertakings governed by Belgian law, within the meaning of Article 351 of the Act on the Supervision of the Financial Sector, and all undertakings belonging to a group, as defined in Articles 339, 2°, and 343 of the Act on the Supervision of the Financial Sector;

Mixed insurance holdings governed by Belgian law;

Belgian branches of insurance or reinsurance undertakings subject to the law of a third country.

Summary/Objective

The undertakings concerned must apply for and use a Legal Entity Identifier (LEI).

This circular aims to broaden the use of the LEI code for identifying legal entities active cross-border. The LEI rules provide for the unique identification of these legal entities, thereby avoiding inconsistency and ambiguity resulting from identification via national codes or names.

NBB_2022_17 - 5 July 2022 Circular - Biz, 1/2

Dear Madam,
Dear Sir,

In order to standardize reporting methods and enable better identification of market participants, EIOPA formulated guidelines on 11 September 2014 to promote the use of the so-called "Legal Entity Identifier" system.

On 20 December 2021, EIOPA published a revision of the aforementioned guidelines on its website¹ to facilitate and promote the use of the LEI as a unique identification code for legal entities active cross-border. These guidelines address the necessity of having an LEI and identifying the legal entities that must have an LEI. The guidelines do not determine when an LEI must be used. The use of an LEI code in reporting and disclosure requirements will be included in new or amended legislation in the future.

The Bank requires the availability of an LEI code at least for:

• every insurance and reinsurance undertaking governed by Belgian law, the branches established in the EEA belonging to insurance and reinsurance undertakings having their head office in Belgium may use the LEI of these insurance and reinsurance undertakings;
• every ultimate parent undertaking governed by Belgian law, within the meaning of Article 351 of the Act on the Supervision of the Financial Sector, and all undertakings, except non-EEA undertakings and non-regulated undertakings belonging to a group, as defined in Articles 339, 2° and 343 of the Act on the Supervision of the Financial Sector;
• every mixed insurance holding governed by Belgian law;
• all Belgian branches of insurance or reinsurance undertakings subject to the law of a third country.

Furthermore, given the advantages of the LEI code, legal entities governed by Belgian law that are active cross-border are advised to apply for an LEI for their branches established in a third country and for legal entities in third countries and for non-regulated undertakings that are part of the group, as defined in Articles 339, 2° and 343 of the Act on the Supervision of the Financial Sector.

We are sending a copy of this circular to the approved auditor(s) or external reviewer(s) of your undertaking.

Yours faithfully,

Pierre Wunsch

1 Guidelines on the Legal Entity Identifier (EIOPA-BoS-2021/456).

NBB_2022_17 - 5 July 2022 Circular - Biz, 2/2