Linking the LEI-and BR-world...2| 16 § ISO 17442 standard: unique 20 digit alphanumeric code assigned to legal entities § A high-quality identifier that is accessible free of charge

1 |16

LinkingtheLEI- andBR-world

RiccoDun,GLEIF

ASORLACannualconferenceSantoDomingo,DominicanRepublic,27November2017

2 |16

§ ISO17442standard:unique20digitalphanumericcodeassignedtolegalentities

§ Ahigh-qualityidentifierthatisaccessiblefreeofchargeasabroadpublicgoodforthebenefitoftheusersofthepublicandprivatesector

§ TheFinancialStabilityBoard(FSB)createdtheLEIinaformofareferencecodetouniquelyidentifylegalentitiesthatengageinfinancialtransactions

§ FSBpolicy:“Uniqueidentificationofpartiestofinancialtransactionsunderpinsmultiplefinancialstabilityobjectives.”

§ Improvedriskmanagementinfirms§ Betterassessmentofmicroandmacroprudentialrisks

WhatistheLEI - LegalEntityIdentifier?

©2017GLEIFand/oritsaffiliates.Allrightsreserved.|2017-11-27|2017ASORLACConference

3 |16

760,000LEI’s worldwide


4 |16

Country #LEIsBolivia 13Brazil 1.252Colombia 293Dominica 29DominicanRepublic 37Ecuador 38Guatemala 50Honduras 30Mexico 1.471Paraguay 78Peru 154Suriname 4

ASORLACmembersandLEIs


5 |16

CommonDataFileFormatoftheLEIRecord

ManydataalreadyinBR


6 |16

Businessmodel

§ GLEISmanagedbyGLEIF(Swissnotforprofitfoundation)

§ RegulatoryOversightCommittee(ROC)with75regulators

§ LocalOperatingUnits(LOU’s)issueLEI’s

§ RelationshipwithLOU’sthroughMasterAgreementandAccreditation

§ 28pre-LOU’s;intotal39inaccreditationprocess

§ LegalEntitiespayannuallyforLEI

§ AllLEI-informationisavailableforthepublicforfree

§ LOU’spayamountperLEItoGLEIF


7 |16

§ 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


8 |16

§ DailyupdatecompleteLEIfile

§ Searchfacility

§ LEIOverviewpagewithstatistics- NumberofLEIsperCountry,Issuer,

RegistrationStatus,EntityStatus- Drilldownfunction:Visualscanbeclicked,

whichleadstothedetailedLEIdata

§ Exportinseveralformats- ThecompletecontentoftheGLEIFFile

canbeexported

§ Alldataavailableforfree

LEISearchliveonGLEIF.ORG


9 |16

LocalOperatingUnitsandBusinessRegisters

§ LOU’sneedBRinformationformappingandvalidation§ RegistrationAuthoritiesListavailable

§ Currently4BusinessRegister-LOUs§ Finland:PatentandRegistrationOffice

§ Italy:Infocamere

§ Netherlands:ChamberofCommerce

§ Spain:Colegio deRegistradores

§ MoreBRsbecomingLOU§ Portugal:IRNendorsed,notactiveyet

§ Slovenia:AJPESinaccreditationprocess


10 |16

BusinessRegisterasLocalOperatingUnit

§ Allrelevantdataonorganizationsinthatjurisdictionarealreadyintheregister

§ Checkingandmappingdataisveryeasyinrealtime(automaticupdates)§ BR’sareusedtocollectingdataandmanagingtheminhighquality

§ EasyprocessofobtaininganLEIforlocalcompanies§ BeneficialforcompaniestoobtainLEIinowncountry§ Valuable,customer-friendlyadditiontoBR-servicesforlocalcompanies§ NaturalextensionoftheworkandexperienceofaBRwithidentifiers,data

qualityandentitydatamanagement

§ MandatoryuseofLEItouniquelyidentifycounterpartiesisgrowingglobally;logicalstepforBRtobeinvolvedinthisprocessbecausethecorebusinessofBR’sisalreadytheuniqueidentification(onanationalscale)

§ FormanyBR’sitalsomeansanentryintoa(forthem)newworldofthefinancialregulators,whichgivesthemopportunitiesthereaswell


11 |16

RegistrationAuthoritiesList

§ GLEIFpublishedthe”GLEIFRegistrationAuthoritiesList”onthewebsite.Thisstandardizesthecrossreferenceprovidedbyalegalentitytoitslocalauthoritativesource.

§ Itcontains650+businessregistersandotherrelevantregistrationauthoritysourcesandassignsauniquecodetoeach.


12 |16

§ 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


13 |16

§ 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


14 |16

WhoOwnsWhom


15 |16©2017GLEIFand/oritsaffiliates.Allrightsreserved.|2017-11-27|2017ASORLACConference

DataonWhoOwnsWhom:TheLEIROCPolicy

EntitiesthathaveoracquireanLEIwillreport

§ Their‘ultimateaccountingconsolidatingparent’:Definedasthehighestlevellegalentitypreparingconsolidatedfinancialstatements

§ Their‘directaccountingconsolidatingparent’:Definedasthelowestlevellegalentitythatpreparesconsolidatedfinancialstatementsthatconsolidatetheentity

Inbothcases,identificationoftheparentwouldbebasedontheaccountingdefinitionofconsolidationapplyingtothisparent

§ IFRS(InternationalFinancialReportingStandards)andUSGAAP(UnitedStatesGenerallyAcceptedAccountingPrinciples)

Accountingdefinitionswerechosenasastartingpoint

§ Applicabletobothfinancialandnon-financialcompanies

§ Theirinternationalcomparabilityhasincreased

§ Widelyused,publiclyavailableandtheirimplementationisperiodicallyreviewedbyexternalauditors

16 |16©2017GLEIFand/oritsaffiliates.Allrightsreserved.|2017-11-27|2017ASORLACConference

§ InformationonparentswillbepartoftheinformationthatmustbeprovidedinorderforanLEItobeissuedorrenewed

§ EntitieswillreportrelationshipinformationtotheLEIissuingorganizations(LOU’s)

§ ChildentitieswillbeobligedtoprovidetheLEIcodeofitsdirectandultimateparenttotheLOU

§ LOUwillverifytherelationshipinformationbasedonpublicdocumentsorothersources

§ TheinformationcollectedwillbepublishedontheGLEIFwebsiteandthereforefreelyavailable

§ Start:1May2017

DataonWhoOwnsWhom:operations

17 |16

Thankyouforyourattention!Formoreinformation,visittheGLEIFWebsiteatwww.gleif.org

RiccoDun

[email protected]


18 |16

Thispresentationcontainsconfidentialandproprietaryinformationand/ortradesecretsoftheGlobalLegalEntityIdentifierFoundation(GLEIF)and/oritsaffiliates,andisnottobepublished,reproduced,copied,ordisclosedwithouttheexpresswrittenconsentofGlobalLegalEntityIdentifierFoundation.

GlobalLegalEntityIdentifierFoundation,theGlobalLegalEntityIdentifierFoundationlogoareservicemarksofGlobalLegalEntityIdentifierFoundation.Otherproductsandservicesandcompanynamesmentionedhereinarethepropertyofandmaybetheservicemarkortrademarkoftheirrespectiveowners.

Limitations


Documents

Linking the LEI-and BR-world...2| 16 § ISO 17442 standard: unique 20 digit alphanumeric code assigned to legal entities § A high-quality identifier that is accessible free of charge