Featured Product

    GLEIF Discusses Chinese Roadmap for LEI Adoption

    April 22, 2021

    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.

     

    Related Links

    Keywords: International, Asia Pacific, China, Banking, Insurance, Securities, LEI, GLEIS, Roadmap, FCA, PBC, CBIRC, CSRC, GLEIF

    Related Articles
    News

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.

    June 21, 2022 WebPage Regulatory News
    News

    EP Reaches Agreement on Corporate Sustainability Reporting Directive

    The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).

    June 21, 2022 WebPage Regulatory News
    News

    PRA Consults on Model Risk Management Principles for Banks

    The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.

    June 21, 2022 WebPage Regulatory News
    News

    EC Regulation Amends Standards for Calculating Credit Risk Adjustments

    The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.

    June 21, 2022 WebPage Regulatory News
    News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News
    News

    EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance

    The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.

    June 17, 2022 WebPage Regulatory News
    News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News
    News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.

    June 16, 2022 WebPage Regulatory News
    News

    UK Authorities Issue Regulatory and Reporting Updates for Banks

    The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.

    June 15, 2022 WebPage Regulatory News
    News

    BCBS Issues Climate Risk Principles while HKMA Expresses Its Support

    The Basel Committee on Banking Supervision (BCBS) issued principles for the effective management and supervision of climate-related financial risks.

    June 15, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8280