On 16 August 2018, the Financial Stability Board (FSB) announced a thematic peer review on the implementation of the Legal Entity Identifier (LEI), alongside summary terms of reference. The objective of the peer review is to evaluate the progress made by FSB members in response to the G20 Leaders’ 2012 call for the “global adoption of the LEI to support authorities and market participants in identifying and managing financial risks”.
Specifically, the peer review intends to:
- take stock of the approaches and strategies used by FSB members to implement the LEI;
- assess whether current levels and rates of LEI adoption are sufficient to support the ongoing and anticipated needs of FSB member authorities; and
- identify the challenges FSB members face in further advancing the implementation and use of the LEI, and make recommendations (as appropriate) to address common challenges.
Feedback is invited from financial institutions and other stakeholders on a variety of areas including:
- 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;
- challenges and costs faced in acquiring and maintaining LEIs; and
- 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.
The peer review report, expected to be published in the first half of 2019, will describe the approaches followed by individual jurisdictions to promote LEI expansion; identify areas where FSB members face common implementation challenges; and document practices that have advanced the adoption and use of the LEI in improving the usability of financial data for financial stability purposes.
The deadline for feedback on the peer review is 21 September 2018.