linking the lei-and br-world...2| 16 § iso 17442 standard: unique 20 digit alphanumeric code...
TRANSCRIPT
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LinkingtheLEI- andBR-world
RiccoDun,GLEIF
ASORLACannualconferenceSantoDomingo,DominicanRepublic,27November2017
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§ ISO17442standard:unique20digitalphanumericcodeassignedtolegalentities
§ Ahigh-qualityidentifierthatisaccessiblefreeofchargeasabroadpublicgoodforthebenefitoftheusersofthepublicandprivatesector
§ TheFinancialStabilityBoard(FSB)createdtheLEIinaformofareferencecodetouniquelyidentifylegalentitiesthatengageinfinancialtransactions
§ FSBpolicy:“Uniqueidentificationofpartiestofinancialtransactionsunderpinsmultiplefinancialstabilityobjectives.”
§ Improvedriskmanagementinfirms§ Betterassessmentofmicroandmacroprudentialrisks
WhatistheLEI - LegalEntityIdentifier?
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760,000LEI’s worldwide
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Country #LEIsBolivia 13Brazil 1.252Colombia 293Dominica 29DominicanRepublic 37Ecuador 38Guatemala 50Honduras 30Mexico 1.471Paraguay 78Peru 154Suriname 4
ASORLACmembersandLEIs
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CommonDataFileFormatoftheLEIRecord
ManydataalreadyinBR
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Businessmodel
§ GLEISmanagedbyGLEIF(Swissnotforprofitfoundation)
§ RegulatoryOversightCommittee(ROC)with75regulators
§ LocalOperatingUnits(LOU’s)issueLEI’s
§ RelationshipwithLOU’sthroughMasterAgreementandAccreditation
§ 28pre-LOU’s;intotal39inaccreditationprocess
§ LegalEntitiespayannuallyforLEI
§ AllLEI-informationisavailableforthepublicforfree
§ LOU’spayamountperLEItoGLEIF
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§ Publicsector§ Mainlymandatoryuse§ Reportingtoregulators(derivatives,securities,insurance,pensionfunds,
centralbanks)§ ReportingtoregulatorsonAML(antimoneylaundering),CFT(combating
thefinancingofterrorism)andsanctionregimes
§ Otherneedsofthepublicsector(e.g.publicprocurement,internationaltaxprograms,provisionofstatisticalresearch)
§ Privatesector§ CorrespondentBanking§ Tradefinance§ Assetmanagementfor(pension)funds§ E-invoicingschemes§ Datamanagement§ Creditrating
BenefitsofLEIadoptionforpublicandprivateusers
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§ DailyupdatecompleteLEIfile
§ Searchfacility
§ LEIOverviewpagewithstatistics- NumberofLEIsperCountry,Issuer,
RegistrationStatus,EntityStatus- Drilldownfunction:Visualscanbeclicked,
whichleadstothedetailedLEIdata
§ Exportinseveralformats- ThecompletecontentoftheGLEIFFile
canbeexported
§ Alldataavailableforfree
LEISearchliveonGLEIF.ORG
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LocalOperatingUnitsandBusinessRegisters
§ LOU’sneedBRinformationformappingandvalidation§ RegistrationAuthoritiesListavailable
§ Currently4BusinessRegister-LOUs§ Finland:PatentandRegistrationOffice
§ Italy:Infocamere
§ Netherlands:ChamberofCommerce
§ Spain:Colegio deRegistradores
§ MoreBRsbecomingLOU§ Portugal:IRNendorsed,notactiveyet
§ Slovenia:AJPESinaccreditationprocess
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BusinessRegisterasLocalOperatingUnit
§ Allrelevantdataonorganizationsinthatjurisdictionarealreadyintheregister
§ Checkingandmappingdataisveryeasyinrealtime(automaticupdates)§ BR’sareusedtocollectingdataandmanagingtheminhighquality
§ EasyprocessofobtaininganLEIforlocalcompanies§ BeneficialforcompaniestoobtainLEIinowncountry§ Valuable,customer-friendlyadditiontoBR-servicesforlocalcompanies§ NaturalextensionoftheworkandexperienceofaBRwithidentifiers,data
qualityandentitydatamanagement
§ MandatoryuseofLEItouniquelyidentifycounterpartiesisgrowingglobally;logicalstepforBRtobeinvolvedinthisprocessbecausethecorebusinessofBR’sisalreadytheuniqueidentification(onanationalscale)
§ FormanyBR’sitalsomeansanentryintoa(forthem)newworldofthefinancialregulators,whichgivesthemopportunitiesthereaswell
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RegistrationAuthoritiesList
§ GLEIFpublishedthe”GLEIFRegistrationAuthoritiesList”onthewebsite.Thisstandardizesthecrossreferenceprovidedbyalegalentitytoitslocalauthoritativesource.
§ Itcontains650+businessregistersandotherrelevantregistrationauthoritysourcesandassignsauniquecodetoeach.
©2017GLEIFand/oritsaffiliates.Allrightsreserved.|2017-11-27|2017ASORLACConference
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§ ThisISOstandardis intended toidentify thedistinctentity legal forms inajurisdiction
§ Why:
§ Standardization ofthelegal ororganisational construct will aid flexibility andprovidegreater understanding ofexposure torisk andaccess tocapital;
§ Regulators andmarket participantshaverecognized theneed toidentify entity legalforms,both nationally andconsistently across theglobalmarkets andhaveasked forastandardtobe developed tomeet this need
§ GLEIFwill take onthemaintenanceagency role forthis standard.Thisincludes providingtheinitialcontentandmaintaining thelist going forward
§ Bottom line:alist ofalllegal forms inallcountries
§ Iwill need your help!
ISO20275– EntityLegalForm
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§ ELFCode
§ Entity Legal Form name (LocalName)
§ Language
§ Language Code(ISO639-1)
§ Entity Legal Form name (Transliteratedname (perISO01.140.10))
§ Abbreviations
§ Abbreviations (Transliterated)
§ Countryofformation
§ CountryCode(ISO3166-1)
§ Jurisdiction offormation
§ Countrysub-division code(ISO3166-2)
§ Datecreated (YYYY-MM-DD(ISO8601))
§ ELFStatus (ACTV/INAC)
ELFContent
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WhoOwnsWhom
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DataonWhoOwnsWhom:TheLEIROCPolicy
EntitiesthathaveoracquireanLEIwillreport
§ Their‘ultimateaccountingconsolidatingparent’:Definedasthehighestlevellegalentitypreparingconsolidatedfinancialstatements
§ Their‘directaccountingconsolidatingparent’:Definedasthelowestlevellegalentitythatpreparesconsolidatedfinancialstatementsthatconsolidatetheentity
Inbothcases,identificationoftheparentwouldbebasedontheaccountingdefinitionofconsolidationapplyingtothisparent
§ IFRS(InternationalFinancialReportingStandards)andUSGAAP(UnitedStatesGenerallyAcceptedAccountingPrinciples)
Accountingdefinitionswerechosenasastartingpoint
§ Applicabletobothfinancialandnon-financialcompanies
§ Theirinternationalcomparabilityhasincreased
§ Widelyused,publiclyavailableandtheirimplementationisperiodicallyreviewedbyexternalauditors
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§ InformationonparentswillbepartoftheinformationthatmustbeprovidedinorderforanLEItobeissuedorrenewed
§ EntitieswillreportrelationshipinformationtotheLEIissuingorganizations(LOU’s)
§ ChildentitieswillbeobligedtoprovidetheLEIcodeofitsdirectandultimateparenttotheLOU
§ LOUwillverifytherelationshipinformationbasedonpublicdocumentsorothersources
§ TheinformationcollectedwillbepublishedontheGLEIFwebsiteandthereforefreelyavailable
§ Start:1May2017
DataonWhoOwnsWhom:operations
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Thankyouforyourattention!Formoreinformation,visittheGLEIFWebsiteatwww.gleif.org
RiccoDun
©2017GLEIFand/oritsaffiliates.Allrightsreserved.|2017-11-27|2017ASORLACConference
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Thispresentationcontainsconfidentialandproprietaryinformationand/ortradesecretsoftheGlobalLegalEntityIdentifierFoundation(GLEIF)and/oritsaffiliates,andisnottobepublished,reproduced,copied,ordisclosedwithouttheexpresswrittenconsentofGlobalLegalEntityIdentifierFoundation.
GlobalLegalEntityIdentifierFoundation,theGlobalLegalEntityIdentifierFoundationlogoareservicemarksofGlobalLegalEntityIdentifierFoundation.Otherproductsandservicesandcompanynamesmentionedhereinarethepropertyofandmaybetheservicemarkortrademarkoftheirrespectiveowners.
Limitations
©2017GLEIFand/oritsaffiliates.Allrightsreserved.|2017-11-27|2017ASORLACConference