Category: Legal Entity Identifier FAQ – LEI / LOU Information

The recommendations provide high-level guidance concerning membership on the Regulatory Oversight Committee (ROC). Regulatory authorities should indicate interest in serving as members, as well as their support for the LEI high-level principles and charter for the ROC. The LEI Implementation Group will develop the ROC charter, covering the details of member appointment. Membership in the… Continue reading Who will be members of the ROC, COU, and LOU?

The FSB’s recommendations for the LEI call for forming the Central Operating Unit (COU) as a not-for-profit foundation, or a body of equivalent legal form, overseen by a Board of Directors that operates under the oversight of the Regulatory Oversight Committee (ROC). The not-forprofit status will facilitate funding to develop and operate the LEI system… Continue reading The FSB report calls for the COU to be founded as a not-for-profit foundation, or equivalent structure. Will the global LEI system be run by this foundation?

The formation of the LEI Private Sector Preparatory Group (PSPG) drew upon the experience from the FSB LEI Industry Advisory Panel, the consultative group to the LEI Expert Group, and was opened to additional members from the financial services industry, as well as other industries. The LEI Implementation Group determined the process for selecting members.

Participants in the LEI Implementation Group (IG) were selected through nominations from FSB members and other public sector stakeholders. For continuity purposes, the IG includes members who participated in the development of the FSB’s recommendations for the global LEI system.

The FSB’s recommendations outline a “federated” model for LEI implementation. Local Operating Units (LOU) will assign LEIs, and validate and maintain reference data. The Central Operating Unit (COU) will ensure that LEIs are unique and of high quality and that parties that implement the LEI adhere to its governing principles and quality standards.

The FSB’s recommendations do not select a solution. Rather, they set out a governance structure and process for developing and implementing a global LEI system. The FSB is supporting an open process; all vendors adhering to guidance set up by the FSB will be considered. The COU and LOUs might use multiple solution providers or… Continue reading Do the FSB recommendations support the trade associations’ proposed solution that was put forth in July 2011?

By providing a universal, unique, authoritative identifier for each entity in financial transactions, a global LEI will provide a valuable risk management tool for aggregating data on exposures. However, while the LEI is critical on its own, it is not sufficient to provide a complete view on the aggregate exposures of any one entity to… Continue reading Will the LEI facilitate aggregation of exposures and risks?

Members of the public-private partnership that developed the FSB recommendations are acutely aware of the need for high-quality data. Thus, the LEI Implementation Group contains members with expertise in fields such as law, operations, and technology, to provide guidance on delivering an efficient and high-quality global LEI system. Also, private industry will provide valuable consultation… Continue reading How will quality be assured in such a widespread “federated” model for governing the LEI?

As the global LEI becomes more widely used, we and many industry participants expect the LEI to decrease costs and improve risk management, at the firm level and across the system. These savings would come primarily from operational efficiencies, such as reducing the volume of transaction failures; lowering data reconciliation, cleaning, and aggregation costs; and… Continue reading How will an LEI system benefit industry?

To support use of the global LEI, the FSB’s recommendations allow for jurisdictions to serve as early adopters of a global LEI. In the United States, the Commodity Futures Trading Commission (CFTC) has issued a rule requiring swap counterparties to be identified by a legal entity identifier by July 16, 2012. Because the global LEI… Continue reading What is the CFTC’s “interim-LEI,” the CICI, and how are regulators assuring it remains consistent with the global LEI?