LEI Relationship Data Explained: Level 1 vs Level 2
Understanding the difference between Level 1 reference data and Level 2 relationship data in the LEI system, and why both matter for transparency.
Level 1 Data: Who Is Who
Level 1 LEI data identifies the legal entity itself. It covers the legal name, registered address, headquarters address, jurisdiction, entity category, legal form, registration status, and renewal status.
Level 2 Data: Who Owns Whom
Level 2 relationship data explains accounting consolidation relationships. It can identify direct parent entities, ultimate parent entities, fund managers, umbrella fund structures, and cases where a relationship is not reported because an allowed exception applies.
Why Reporting Exceptions Matter
A missing parent is not always a data error. GLEIF records can include exception reasons, for example where no parent exists, consent was not obtained, or disclosure would breach legal constraints. Compliance teams should read the exception before treating a relationship as unknown.
How to Use Relationship Data
- Map counterparty groups and shared ultimate parents.
- Identify fund managers and umbrella fund structures.
- Support AML, KYC, credit, and concentration risk reviews.
- Improve internal entity master data by linking local identifiers to LEIs.