Shearman & Sterling LLP | FinReg | Financial Stability Board Consults on Implementation of the Legal Entity Identifier
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  • Financial Stability Board Consults on Implementation of the Legal Entity Identifier
    The Financial Stability Board has launched a thematic peer review on implementation of the Legal Entity Identifier and is inviting feedback on implementation of the LEI at the same time. The objective of the LEI system is for unique identifiers to be held by all legal entities participating in financial markets across the globe. It is envisaged that the LEI system will lead to better data aggregation, enhance systemic risk monitoring and reduce costs to market participants.

    Using the peer review, the FSB will: (i) consider the approaches and strategies used by FSB members to implement the LEI, including its adoption for regulatory requirements; (ii) assess whether current levels and rates of LEI adoption are sufficient to support the ongoing and anticipated needs of FSB member authorities; (iii) identify the challenges in further advancing the implementation and use of the LEI; and (iv) if appropriate, make recommendations for addressing any challenges.

    The FSB is seeking feedback on implementation of the LEI and, in particular, on:
    • identifiers used by financial institutions for legal entities established in their own or foreign jurisdictions, and the extent to which they are mapped to the LEI;
    • awareness and adoption of the LEI, particularly the existence or prospect of any market-driven or voluntary adoption of the LEI by market participants;
    • 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;
    • challenges and costs encountered in acquiring and maintaining LEIs;
    • the main obstacles to adoption and implementation of the LEI; and
    • ways to promote further adoption of the LEI.

    Feedback on the implementation of the LEI can be provided until September 21, 2018.

    View the review's summary terms of reference.

    View the FSB's press release

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