Level 2 data provides information on the ownership structure of the entity, answering the question ‘Who owns Whom’. Under GLEIF rules, when legal entities register for a LEI, they must report who owns them, by identifying their Direct Accounting Consolidating Parent and Ultimate Accounting Consolidating Parent if applicable.
A Parent must be reported if:
- It owns more than 50% of the entity, and
- It consolidates the child entity’s financial results in its consolidated financial statements.
If a parent owns the entity but does not consolidate its accounts, it is not considered a parent under GLEIF rules.