The CFCT, NAIC, FED, and SEC now demand the development of LEIs when a corporation engages in specific activities, and many other authorities have followed suit.
The Dodd-Frank Act has accelerated the adoption of all-encompassing LEIs in the US, and other developments that require LEIs to be used more broadly are anticipated in the future.
Is an LEI Mandatory?
Several EU directives, including EMIR, MiFIR, MIFID II, SFTR, and CSDR, require the use of LEI codes as identifiers. The Dodd Frank Act, the OFR, the Federal Reserve, and the Securities & Exchange Commission (SEC), which mandate its usage in various forms and filing obligations, are examples of similar requirements in the United States.
All entities must have an active LEI number as of January 3, 2018, to participate in transactions on the European financial market for bonds, stocks, FX forwards, swaps, and any other derivatives or securities.
The Markets in Financial Instruments Directive II (MiFID II) and the Markets in Financial Instruments Regulation (MiFIR) became operative on this date. Every investment service provider must confirm that the LEI code is active.
Although it is not necessary to have an LEI when simply owning securities, it is highly advised because without one, transactions cannot be completed.
For a full list of Regulatory Use of the LEI code you can visit official GLEIF page, which is updated often with information about specific Rules, year from which they are effective, status and specific information about each rule.