GLEIF discussed the regulatory roadmap of China to promote nationwide adoption of the Legal Entity Identifier (LEI). The regulatory roadmap is part of the "One Belt One Road" initiative and unveils the national plans to increase LEI issuance by at least 170% between the end of 2020 and the end of 2022. The Chinese regulatory authorities are proactively driving LEI usage and have set ambitious plans for substantial near-term increases in LEI volume.
In the fourth quarter of 2020, four financial regulators (PBC, CBIRC, CSRC, and the State Administration of Foreign Exchange) in China released a report detailing the LEI implementation roadmap, which looks ahead to 2022. The report outlines the general objective of the roadmap and details key LEI implementation milestones over the next two years. GLEIF understands that the general objective of the roadmap is to establish a comprehensive LEI usage policy system across the financial system in China, in line with the international standards, by the end of 2022. By the end of 2020, the roadmap provides for proposed LEI application rules in scenarios such as RMB cross-border payments, digital RMB cross-border business, qualified foreign institutional investor and RMB qualified foreign institutional investor access, derivatives trading, securities trading, and listed company supervision. Then, by the end of 2021, the roadmap mentions proposed LEI application rules in areas such as the financial market transaction reporting system, credit rating, and application of special institutional codes by overseas institutions. By the end of 2022, the total LEI volume in Mainland China is expected to reach 100,000 and China expects to use LEI in scenarios such as digital identification of cross-border legal persons and to establish a mechanism for commercially sustainable operation of LEI.
GLEIF also welcomed the news that Chinese Financial Certification Authority (CFCA) has launched the first commercial demonstration of LEIs embedded within digital certificates. CFCA has simultaneously become the first Certification Authority to assume a Validation Agent role within the Global LEI System. The combined sum of these two initiatives (roadmap and demonstration of LEIs) is significant. This shows an advanced level of proactivity from regulatory authorities, which is driving LEI issuance to support financial services and banking ecosystems, simplify international trade, and enhance digital identity across the region.
Keywords: International, Asia Pacific, China, Banking, Insurance, Securities, LEI, GLEIS, Roadmap, FCA, PBC, CBIRC, CSRC, GLEIF
Previous ArticleACPR Publishes Draft Version of CREDITIMMO Taxonomy for Banks
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.
The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.
The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)
The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.
The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.
The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.