GLEIF Publishes Annual Report in ESEF Format, Shows Benefits of LEI
GLEIF published its second annual report in human and machine-readable Inline XBRL and HTML format, with the Legal Entity Identifier (LEI) embedded within both the annual report and the digital certificates of GLEIF’s signing executive officers. This was delivered in partnership with the XBRL International and Workiva and in cooperation with ESMA. In this report, GLEIF showcased how the LEIs should be included within digital, machine-readable financial documentation on the basis of the ESEF mandate of ESMA, to enhance trust and ease data aggregation. The report also demonstrated how simple it is to incorporate the LEI into electronic signatures as an additional best practice. GLEIF also published its data quality report for the month of June 2020, with the report showing that 33 out of 35 "LEI Issuers" continue to achieve the required data quality.
GLEIF strongly encourages all issuers to step up their efforts to comply with the new single electronic format, the ESEF, from ESMA. Embedding LEIs into financial documentation is mandated by ESMA, which strongly supports the GLEIF effort to advocate for timely and high-quality compliance with the ESEF requirements. With this development, GLEIF became a front-runner in complying (voluntarily) with the new EU regulation that determines the electronic reporting format for issuers preparing their annual financial reports—beginning on or after January 01, 2020—in ESEF. By embedding the LEI into the document, GLEIF showcased how issuers can meet the mandatory requirements of the ESEF. Additionally, by embedding the LEI into the electronic signatures of the signing officers, GLEIF demonstrated, through a Proof of Concept, how simple it is to incorporate an additional best practice step that could generate end-user trust in the authenticity and integrity of the documents. Significant advantages of this approach to financial market participants include:
- Easy verification of the filing entity’s identity based on its LEI, resulting in greater end-user trust in the authenticity and integrity of the documents
- Automated access to aggregated data on the filing entity, which will create multiple benefits—namely, enhanced visibility of the entity’s reference data available within the Global LEI Index; opportunities to create new online databases that collate key data assets of entities with an LEI; and easy aggregation of information on companies obtained from multiple sources supporting comparability of standardized financial information
- Increased transparency for end-users on an entity’s ownership structure. Relationship networks between LEIs can be quickly and automatically established when the LEIs of the filing entity, its affiliates, subsidiaries, and parent companies are provided in machine-readable financial reports
- Improved ability for regulators to minimize market abuse
Related Links
Keywords: International, Banking, Insurance, Securities, LEI, Machine Readable Report, Data Quality Report, ESEF Regulation, Reporting, GLEIF, ESMA
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
David Fihrer
Skilled life insurance actuary; subject matter expert on IFRS 17 and source of earnings
Previous Article
FIN-FSA Amends Rules and Guidelines on Reporting of Funding PlansRelated Articles
ESAs Issue Multiple Regulatory Updates for Financial Sector Entities
The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.
FSB and NGFS Publish Initial Findings from Climate Scenario Analyses
The Financial Stability Board (FSB) and the Network for Greening the Financial System (NGFS) published a joint report that outlines the initial findings from climate scenario analyses undertaken by financial authorities to assess climate-related financial risks.
FSB Issues Reports on NBFI and Liquidity in Government Bonds
The Financial Stability Board (FSB) published a letter intended for the G20 leaders, highlighting the work that it will undertake under the Indian G20 Presidency in 2023 to strengthen resilience of the financial system.
ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments
The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.
IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets
The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.
EBA Finalizes Methodology for Stress Tests, Issues Other Updates
The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups
EU Finalizes Rules Under Crowdfunding Service Providers Regulation
The European Union has finalized and published, in the Official Journal of the European Union, a set of 13 Delegated and Implementing Regulations applicable to the European crowdfunding service providers.
OSFI Sets Out Work Priorities and Reporting Updates for Banks
The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.
APRA Finalizes Changes to Capital Framework, Issues Other Updates
The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.
BIS Hub and Central Banks Conduct CBDC and DeFI Pilots
The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.
