What is an LoA (Letter of Authorisation)?
Applying for, renewing and transferring Legal Entity Identifiers is an important step towards obtaining a global identity for your business. On a global level it will mitigate KYC requirements by each entity having a common identifier system. In order to achieve this the LEI issuance process is carefully meticulous. One of the requirements is that the Authorised Signatory of the company approves the LEI application. To do this we use an LOA, or letter of authorisation.
What is a Letter of Authorization (LOA)?
A Letter of Authorization (LOA) is a formal document that grants permission to a designated individual or organization to act on behalf of another party in specified matters. In the context of LEI Worldwide, an LOA is typically used when a legal entity authorizes a third party to manage its Legal Entity Identifier (LEI) registration, renewal, or any associated tasks.
Why is an LOA Needed?
Legal Compliance: An LOA ensures that only authorized individuals can perform actions related to your LEI, thereby maintaining compliance with regulatory requirements.
Streamlined Processes: By authorizing a third party, you can delegate responsibilities, allowing for more efficient management of your LEI registration and compliance processes.
Clarity and Accountability: An LOA provides clear documentation of who is authorized to act on your behalf, reducing the risk of misunderstandings or unauthorized actions.
How to sign an LOA?
Signable: In most cases we will issue you with an e-signable document from Signable, unless there are vast numbers of LEIs or multiple signing authorites.
Signer: The signer of the LOA must be a verifiable signing authority. This means they must be listed on an official company document e.g Company Filing, Registry Document etc. See here for documents needed. This person is often a C-Suite exec, Director, Shareholder, Senior manger etc.
Implications: Singing an LOA simply grants the LEI provider authority to act on this person behalf only with regards to renewing, or managing the specific LEI mentioned in the LOA, it specifically grants no other rights or Power of Attorney.
In order to transfer an LEI to LEI Worldwide we will always require a signed LOA. Please contact us for more information and templates.