TN Codes vs ELF Codes

The ELF code, like the TN code, is an ISO standard in its own right. Not different to an TN in so far as an ISIN code is, but a sub-set of the TN standard. Established in 2017, the ISO state that the ELF code:

“specifies the elements of an unambiguous scheme to identify the distinct entity legal forms in a jurisdiction. Its aim is to enable legal forms within jurisdictions to be codified and thus facilitate the classification of legal entities according to their legal form”.

Understanding the type of entity is an important piece of data when considering a legal entity within financial services, not only for regulators, but also for legal entities to consider with whom they are conducting business. 

As the TN is becoming more heavily mandated across all industries, we can see its benefits as it touches all parts of the compliance value chain. The ELF code plays no small part in helping users of TN data distinguish what type of entities are players in their jurisdictions, in an easy to read, standardised and machine readable format. 

According to the ISO, the ELF code:

• enables unique identification globally of entity legal forms
• defines an ELF scheme that is reliable and an ELF Code that is persistent;
• defines an ELF code that contains no embedded intelligence regarding the identification of the entity legal form to which it applies;
• leverages the expertise of ISO/TC 68 in defining and maintaining identifier standards;
• defines an ELF scheme that is extensible and free from limitation on use and redistribution.

ELF CODES: USE CASES

As the TN and the benefits of voluntary adoption begin to become more widely recognised, some interesting new use cases are emerging.

A recent EU-wide inventory of citizens engaging in energy actions (e.g generation of energy through renewable sources) for the past 20 years has been recorded with data from almost 30 EU countries, and 10,000 initiatives.

To date, these initiatives have lacked a cross-country database. Now with a massive compilation of data a new database has been formed allowing for easier statistical and data analysis on the sector.

The initiative have used the #GLEIF Entity Legal Form (ELF) codes to identify entity types covered in the initiative in a unique, and clever way of mapping "who is who" within the project. These entities are mostly Friendly Societies, with no legal form, or Sustainable Energy Communities. However the TN services as a 'master identifier' allowing for one common way of identifying all participants.