The recent financial crisis has created a universal awareness of reference data and helped elevate it from a back office concern to a critical business function. Specifically, global regulators have recognized that the consistent identification of clients and counterparties must be a key foundational component in any effort to manage systemic risk. Enter the global legal entity identifier (the “LEI”).
This A Closer Look will outline the evolution of the LEI, provide some regulatory context, and then discuss the current state of industry readiness and suggested activities for those impacted by this change. The big picture involves trade associations, financial services firms, corporate issuers, newly formed global regulators, and even the G20.