Legal Entity Identifier - An important initiative

[Goran Fors]

The accurate identification of legal entities engaged in financial transactions is
critically important towards the improved measurement and monitoring of systemic risk
by regulators and supervisors.
A global standardized Legal Entity Identifier (the “LEI”) will help enable
organizations to more effectively measure and manage risk, while providing substantial operational efficiencies and customer service improvements to the industry.
The need for accurate counterparty exposure measurement and good data to support such measurement has been recognized by significant international bodies such as the Financial Stability Board (the "FSB") and the G20.
The objective of a coalition of global financial services trade associations and organizations has been to develop an international industry group consensus on the requirements and
standards for a viable, uniform and global LEI solution and to formulate a recommendation on the organizations it believes are best suited to provide that solution. These requirements and the solution provider recommendation are important first steps in the creation of a robust, global LEI solution for the accurate and unambiguous identification of legal entities engaged in financial transactions.
A globally consistent regulatory mandate and implementation effort is essential to the
success of this effort. Global cooperation among, and feedback from, the major regulators in the Americas, Europe and Asia will be necessary to establish an effective LEI program as each country considers its own regulations for financial transactions and systemic risk monitoring.

[Daria Avdeeva]

Great idea to create more transparency, for banks simplify KYC issues, for regulators the anti-money laundering but sounds extremely complex from practical point (security of info provided, language issues, etc.).

[ulfnoren]

And needed. As all activity surrounding the MF Global Wind Down shows.

[ulfnoren]

I read on Virginie O'Sheas Blog FSB says “concrete proposals” for LEI system by April « Virginie's Blog that the Financial Stability Board (FSB) indicate that concrete proposals for a new LEI system will be expected in April and ready for delivery and review in time for the FSB Cannes Summit in June.