LEI ROC published its final policy on fund relationships in the Global Legal Entity Identifier System (GLEIS), along with guidelines for the registration of investment funds in the GLEIS. The report provides definitions of relationships affecting investment funds or collective investment schemes ("Fund Management Entity," "Umbrella Fund," and "Master-Feeder") and specifies when reporting these relationships would be optional. Implementation is expected within eighteen months of the publication of this policy.
The eighteen months are needed for the implementation, given the need for GLEIF to prepare the technical standards in consultation with the Local Operating Units (LOUs), for LOUs to implement them and provide sufficient guidance to registrants ahead of implementation. The policy report explains the objectives of the data collection and details why the rules of GLEIS should require a fund to report the LEI as opposed to only the name of the related entity. It also explains why, following the public consultation, the continuation of an optional approach has been adopted by LEI ROC, with some exceptions. The policy describes how these relationships should be verified, lists issues to consider when representing fund relationships in the GLEIS, and discusses the future work on other fund relationships.
The report offers a limited update to the way relationships affecting investment funds are recorded in GLEIS, with the aim to ensure that the implementation of relationship data is consistent throughout the GLEIS and to provide a way to facilitate the standardized collection of fund-relationship information at the global level. This is being done by providing definition for fund relationship and aligning the data structure with what is done for direct and ultimate accounting parent entities as defined in LEI ROC report of March 2016. The report asks GLEIF to replace the current optional reporting of a single “fund family” relationship as part of Level 1 (reference data of the entity) with certain relationships as part of “Level 2” data (relationship data). In line with responses to the first consultation, LEI ROC adopted eliminating the proposed generic category “Other Fund Family” (except for past records) and not including any additional relationships at this stage. LEI ROC adopted that the collection of these relationships in the GLEIS will be optional, except
- If the relationship is mandated to be reported and publicly available in the relevant jurisdiction and if the LEI is mandatory for the related entity in the relevant jurisdiction
- For the relationship between an umbrella structure and a sub-fund or compartment or other sub-structure
Effective Date: Policy Report+18 Months
Keywords: International, Banking, Securities, Fund Relationships, GLEIS, GLEIF, LEI, LEIROC
Previous ArticleIA of Hong Kong Launches Survey to Assess Readiness for HKFRS 17
In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.
The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.
The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.
The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.
The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.
The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.
The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.