October 2016

Updates on developments surrounding implementation of the Global Legal Entity Identifier System

GLOBAL LEI FOUNDATION NEWS

May 3 – GLEIF Publishes 2015 Annual Report
In May, the Global Legal Entity Identifier Foundation (GLEIF) published its second annual report, which highlights the status of GLEIF operations as well as the statements of financial condition and the auditor’s report for the period from December 31, 2014 to December 31, 2015. In 2015, the Global LEI System entered into a period of sustained cooperation between the LEI ROC, GLEIF and the LEI Operating Units. Throughout 2015, initial responsibilities of the LEI ROC were taken over by GLEIF, which had expanded its organization and operational capacities.
Press Release

June 22 – Five New Members Appointed to GLEIF Board
In June, five new members were appointed to the Board of Directors of the Global Legal Entity Identifier Foundation (GLEIF). The GLEIF Board of Directors is made up of minimum 15 and maximum 25 members; it comprises a minimum number of three members from each of the four regional groupings: North America (including Mexico and the Caribbean); Europe (including the Commonwealth of Independent States); Asia (excluding the Middle East); Central and South America, Africa, Oceania, and the Middle East. A member of the Board is eligible to hold office for a two-year term, renewable (with the consent of the Board) for an additional term of two years.
Press Release

July 13 – New GLEIF Challenge Facility Extends Ability to Trigger Updates of Legal Entity Identifier Data to All Interested Parties
In July, the Global Legal Entity Identifier Foundation (GLEIF) launched its new data challenge facility. It offers any interested party an easy and convenient means to trigger the verification and, where required, speedy update of Legal Entity Identifier (LEI) records including related reference data. This centralized online service, which is part of GLEIF’s data quality management program, further contributes to ensuring that the publicly available LEI data pool remains a unique key to standardized information on legal entities worldwide.
Press Release

August 9 – GLEIF Publishes Blog Post on Global LEI Developments
In its August update, the GLEIF offered an overview of LEI developments around the world, including actions by regulators, such as consultations and rulemakings, and speeches by policymakers. The blog post covers developments dating back to May 2016.
Blog Post

August 31 – GLEIF Publishes Registration Authorities List
In August, the Global Legal Entity Identifier Foundation (GLEIF) published its new ‘Registration Authorities List.’ It contains 652 business registers and other relevant registration authority sources and assigns a unique code to each register on the list. Going forward, LEI issuing organizations will reference this code in their LEI issuance processes and reporting. The implementation of the GLEIF Registration Authorities List will further increase the reliability and usability of the LEI data.
Press Release

September 5 – GLEIF Releases Data Quality Report for August 2016
Since February 2016, the Global Legal Entity Identifier Foundation (GLEIF) has been publishing monthly data quality reports, which summarize the results of GLEIF’s assessment of the level of data quality in the Global Legal Entity Identifier (LEI) System based on a set of clearly defined quality criteria. Using software developed by GLEIF, the LEI data records made available by the LEI issuing organizations are checked daily against the defined quality criteria. These checks identify, for the time being, whether the data records are consistent and plausible. Also on a daily basis, GLEIF sends a report detailing the results of the performance assessment to the LEI issuing organizations.
Report

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TECHNICAL

June 20 – XBRL International Forms Joint Working Group with GLEIF to Address Legal Identity in Digital Business Reporting
In June, XBRL International announced that the XBRL International Best Practices Board, in cooperation with the Global Legal Entity Identifier Foundation (GLEIF), is forming a working group to examine and make concrete recommendations about the best ways to create consistency in referencing legal identity within XBRL documents. The group will be tasked to develop recommendations about the consistent use of Legal Entity Identifiers (LEIs) within XBRL taxonomies and instance documents.
Press Release

July 11 – LEI ROC Publishes Policy Document on Including Data on International/Foreign Branches in the GLEIS
This policy document sets forth the policy design, definitions, and conditions for issuance of LEIs for international branches Implementation is expected to start in early 2017, subject to ROC concurrence with an appropriate framework being established to ensure that the conditions described in this document are met.
Policy Document

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REGULATORY UPDATE

June 21 – Financial Stability Oversight Council Calls LEI Adoption a Priority
In its sixth annual report, the Financial Stability Oversight Council (FSOC) named broader adoption of LEIs as one of its priorities in improving data quality and collection. The FSOC recommends that its member agencies use LEI in regulatory reporting requirements, and it specifically recognized the importance of all the legal entities within complex financial institutions obtaining LEIs when the GLEIS begins collecting hierarchy information.
FSOC Annual Report

July 13 – BIS and FSB Publish Reports Promoting Use of LEIs for Correspondent Banking
The Bank for International Settlements’ Committee on Payments and Market Infrastructures (CPMI) and the Financial Stability Board have both issued reports that aim to alleviate costs and concerns affecting correspondent banking activities. Both reports include recommendations to promote the use of LEIs as a means of accessing reliable information to support customer due diligence.
BIS Report | FSB Report

July 21 – LEIs Included in Proposed Changes to Form 5500
The U.S. Department of Labor, Department of the Treasury, and the Pension Benefit Guaranty Corporation in July published proposed changes to Form 5500, completed by employee benefit plans to satisfy annual reporting requirements under ERISA and the Internal Revenue Code. The proposal would add to the Line 4i(1) Schedule of Assets Held for Investment at End of Year a requirement to report investment identifiers such as CUSIP (Committee on Uniform Securities Identification Procedures), CIK (Central Index Key), and LEI (Legal Entity Identifier), if applicable, for each asset. The LEI is included in the proposal in anticipation of increased use by the time the rule becomes final.
Federal Register

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LEI IN THE NEWS

June 9 – Financial Times, Connect the Corporate Dots to See True Transparency
In recent months, following the leak of the Panama Papers, there has been much talk about the lack of global corporate transparency. Pressure is now growing for governments and companies alike to become more transparent about corporate entities, even where offshore centres are involved. In all this, a crucial point is often forgotten: simply amassing data will not solve the problem of transparency. What is also needed is a way for analysts to track the connections that exist between companies scattered across different national jurisdictions.

Happily, work on that has begun: in 2014, the Global Legal Entity Identifier Foundation was created. It supports the implementation and use of “legal entity identifiers”, a data standard that identifies participants in financial transactions. Groups such as the Data Coalition in Washington DC are lobbying for laws that would force companies to use LEIs.
Article

July 26 – London Stock Exchange Group’s UnaVista Offers LEI Allocation Service to Help Firms Meet Accreditation Requirements
UnaVista has developed an LEI Allocation service to help reduce the regulatory and operational challenges of becoming an accredited Local Operating Unit (LOU) for Legal Entity Identifiers (LEI). For firms who need to acquire LEIs for their business, UnaVista has developed an LEI Data Management Tool. Firms can use the tool to assess how many LEIs they and their clients will need by comparing the data against a complete LEI database. The tool then has the project tools to help firms apply for the missing LEIs on mass through the tool.
Press Release

September 1 – Waters Technology, Furthering the Global Legal Entity Identifier System
With the legal entity identifier making great progress since its inception, and especially in the past year, the DTCC’s Ron Jordan says momentum must continue for adoption in more markets and better hierarchies.
Article

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LEI IMPLEMENTATION TIMELINE


Source: JPMORGAN Chase

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lei by the numbers

Endorsed LOUs – 30
Countries with LOUs – 29
Countries with LEIs – 199
LEI Registered Entities – >460,000

LEIs By Country

 

LEIs By Issuer

 

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list of lei rulemakings

A list of existing and proposed rules that make use of the LEI is available on the GLEIF website. To access the list, please click here.

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upcoming events

SIFMA AMG Global Developments Conference, 13 October in NYC
Join SIFMA’s Asset Management Group for an expert-led conference exploring international regulatory issues and current events of interest to asset managers, including Brexit, reform of the regulation of the equities, fixed-income and derivatives markets, and systemic risk. This unique forum will bring leaders from across the asset management industry, to convene with representatives from the brokerage industry, exchanges, and other market participants to discuss the latest global developments.
Register today

The Globalization of China’s Markets Summit: Accessing Equity and Fixed Income Markets, October 18
SIFMA and ASIFMA’s Summit in NYC, “Globalization of China’s Markets - Accessing Equity and Fixed Income Markets,” will bring together senior regulators and regional policy-makers, industry experts, and sell side and buy side executives to discuss recent key market developments in China. The program will include discussions on the implications for market participants and the global economy of RMB internationalization, the Hong Kong-Shanghai Stock Connect and the opening of the China Interbank Bond Market (CIBM). Register to attend in-person or via webinar.
Reserve your seat

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