From Avid to Lei in Australia: A Guide to the New ID System (2024)
If you are one of the many people using AVID as your entity identifier, you must be aware of the new changes. From October 21, 2024, using AVID and BIC will no longer be possible, and you will need an LEI code instead.
From AVID to LEI: What does it mean for you?
As an entity identifier, the LEI code is a globally accepted and unique number that identifies a legal entity. It is designed to increase transparency and improve risk management in financial transactions. So, what does this mean for those who have used AVID so far?
Firstly, it means you need to be aware of the transition period. As of October 21, 2024, AVID and BIC will no longer be valid entity identifiers. This means you must start preparing to implement the LEI code in your business. Consider setting up a system to collect and maintain LEI codes for all your entities.
Secondly, it's essential to understand the process for obtaining an LEI. You must apply for an LEI through an approved LEI issuer. We take a closer look at this process below.
"From October 21, 2024, the use of AVID will transition to LEI in Australia."
Guide: How to go from AVID or BIC to LEI
Step 1: Apply for an LEI
If your entity still needs an LEI, you will need to apply for one. Creating an LEI is a straightforward process that can be completed in simple steps.
- Go to an approved LEI provider and make an online application.
- Provide your company registration number, pay a fee and then apply.
- After this, providers apply for an LEI code on your behalf.
- Once the documents are verified, your LEI code will be issued.
- Your LEI code is now active and ready to use.
Step 2: Update your systems and registrations
Once you have received your LEI code, updating your systems and records with the new code is important. This includes updating your financial institutions, regulators, and other relevant parties about the change. This ensures that all your transactions and securities are correctly identified and tracked.
Step 3: Inform your stakeholders
It's also important to inform your stakeholders about the transition from AVID or BIC to LEI. This can include your business partners, suppliers, customers, and other relevant parties. By informing them of the change, you can ensure that everyone is up to date and can adapt to the new entity identifier.
Step 4: Comply with all applicable regulations and deadlines
As with any change in business processes, it is important to comply with all applicable regulations and deadlines. Be aware that an LEI code must be renewed every year; make sure to do so in a timely manner to avoid problems and delays in your financial transactions.
Buy your LEI code today from LEI-Service
LEI Service is an authorized provider of LEI codes. We offer a fast and simple registration process that ensures you get your LEI code quickly.
Our experienced and dedicated team is always ready to help you answer any questions and guide you through the application process.
So why wait? Apply for your LEI today, and be sure to comply with the upcoming requirements that apply from October 21, 2024.
FAQs about AVID and LEI
A Legal Entity Identifier (LEI) is a unique 20-digit alphanumeric code associated with a single legal entity. Its purpose is to standardize the identification of entities involved in financial transactions globally.
AVID, issued by The Avox International Business Entity Identity, refers to a specific identifier used in the financial industry to manage and exchange information regarding entities and participants. AVID is a unique identifier assigned to each entity, like businesses and companies, which helps streamline data and ensure consistency across various platforms and transactions.
You might be wondering about this change. The change aims to create greater harmonization and standardization in the field of entity identification. The LEI code is a globally recognized identifier used to identify legal entities dealing with financial transactions, shares, bonds, and other securities. By using the LEI code, companies and authorities can easily and accurately identify and track entities across different jurisdictions.
If you don't upgrade to an LEI code by October 21, 2024, using AVID or BIC as an entity identifier will no longer be possible. This can have serious consequences for your business as you will no longer be able to identify and track entities across different jurisdictions. This can lead to delays in your financial transactions and lost business opportunities. Therefore, it is important to be aware of this change and take the necessary steps to obtain an LEI code in a timely manner.