ESMA Publishes Results of Legal Entity Identifier Survey

The European Securities and Markets Authority (ESMA) has published the results of its October 2024 survey on legal entity identifiers. The survey gathered feedback from 136 respondents across 26 countries on the use of different identifiers in financial reporting. Of these respondents, 76% structured their systems around specific legal entity identifiers, among which 83% prioritizing the Legal Entity Identifier (LEI). Costs for adapting systems towards the ability to receive those identifiers varied widely, ranging from €3,000 to €4.5 million, with a median cost of €40,000. Many respondents highlighted significant costs and operational complexities in implementing alternative identifiers. The majority (86% of non-association respondents and 89% of associations) favored the LEI for reporting legal entities. Two regional associations, however, explicitly supported the EUID as an alternative.