FSB Reviews LEI Implementation

The Financial Stability Board (FSB) is seeking feedback from stakeholders as part of its recently launched thematic peer review on implementation of the Legal Entity Identifier (LEI). The objective of the review is to evaluate the progress made by FSB members – both national authorities and international bodies – in response to the G20 Leaders’ 2012 call for “global adoption of the LEI to support authorities and market participants in identifying and managing financial risks”.

The peer review will: (1) take stock of the approaches and strategies used by FSB members to implement the LEI, including its adoption for regulatory requirements; (2) assess whether current levels and rates of LEI adoption are sufficient to support the ongoing and anticipated needs (particularly financial stability objectives) of FSB member authorities; and (3) identify the challenges in further advancing the implementation and use of the LEI, and make recommendations (as appropriate) to address common challenges.

The Summary Terms of Reference provide more details on the objectives, scope and process for this review. A questionnaire to collect information from national authorities has been distributed to FSB members. The responses will be analysed and discussed by the FSB later this year. The peer review report will be published in the first half of 2019.

As part of this peer review, the FSB invites feedback from financial institutions, industry and consumer associations plus other stakeholders on implementation of the LEI. This could include comments on:

• identifiers used by financial institutions for legal entities established in their jurisdiction or in foreign jurisdictions, and the extent to which they are mapped to the LEI;
• awareness and adoption of the LEI in their jurisdiction, especially the existence or prospect of any market-driven or voluntary adoption of the LEI by market participants;
• types of private sector uses of the LEI (e.g. to implement risk management frameworks, support financial integrity, reduce operational risks, or support higher quality and more accurate financial data) as well as the benefits measured or anticipated from such uses (including any quantification of the benefits, to the extent possible);
• challenges and costs faced in acquiring and maintaining LEIs;
• main obstacles faced by market participants to adoption and implementation of the LEI; and
• ways to promote further adoption of the LEI, including specific areas where increased LEI uses would be the most favourable from a cost-benefit perspective.

Feedback should be submitted by 21 September 2018 to fsb@fsb.org under the subject heading “FSB Thematic Peer Review on Implementation of the LEI.” Individual submissions will not be made public.

Source: FSB