The Global Legal Entity Identifier Foundation (GLEIF) updated the list of current and proposed regulatory activities with respect to the use of Legal Entity Identifier (LEI). The list leads to domestic implementation documents for jurisdictions that require LEI and indicates the effective date of the respective regulatory requirements. Meanwhile, as organization prepare to embed their LEI in financial reports in line with the new European Single Electronic Format (ESEF) requirements, GLEIF is urging them to go beyond compliance requirements and include LEI within the electronic signatures of signing officers, to maximize trust in document authenticity and integrity. GLEIF has demonstrated how simple it is to use and benefit from this feature, by embedding its own LEI in the signing officers’ digital signatures within its newly published 2020 annual report.
The ESEF’s mandatory inclusion of LEI within financial reports automatically links the filing entity to its annually verified LEI reference data—such as name, registered address, and corporate ownership structure—held within the Global LEI Index, which is free to access online. This empowers market participants who rely on official documents to inform strategic decisions (for example, traders, investors, regulators) to quickly and easily consolidate and verify information on a filing entity. There are numerous macro-level market advantages of LEI inclusion within financial reports. These include greater end user trust in the authenticity of financial information, automated access to aggregated data on the filing entity, increased transparency on an entity’s ownership structure, and an enhanced ability for regulators to minimize market abuse. Beyond the European Union-wide mandate of the European Securities and Markets Agency (ESMA), the European Central Bank (ECB) has also recognized the benefits of extending LEI use to cover all future public reporting and financial transactions. Consequently, the European Systemic Risk Board has recommended the establishment of an EU legislative framework for greater adoption of LEIs across the European Union. One objective of the recommendation is to ensure the systematic and comprehensive use of the LEI for identification of entities in the reporting of financial information.
Keywords: International, Banking, Insurance, Securities, Reporting, Regulatory Activities, LEI, GLEIS, ESEF, Annual Report, ECB, ESRB, GLEIF
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The French Prudential Supervisory Authority (ACPR) published a notice related to the methods for calculating and publishing prudential ratios under the Capital Requirements Directive (CRD IV) and the minimum requirement for own funds and eligible liabilities (MREL).
The Financial Stability Institute (FSI) of the Bank for International Settlements recently published a paper proposing a framework for classifying financial stability regulation as either entity-based or activity-based.
The European Insurance and Occupational Pension Authority (EIOPA) published the risk dashboard based on Solvency II data and the final version of the application guidance on climate change materiality assessments and climate change scenarios in the Own Risk and Solvency Assessment (ORSA).
The European Banking Authority (EBA) and the European Central Bank (ECB) published their responses to the consultations of the International Sustainability Standards Board (ISSB) and the European Financial Reporting Advisory Group (EFRAG) on sustainability-related disclosure standards.
A Consultative Group on Risk Management (CGRM) at the Bank for International Settlements (BIS) published a report that examines incorporation of climate risks into the international reserve management framework.
The European Banking Authority (EBA) published the final guidelines on liquidity requirements exemption for investment firms, updated version of its 5.2 filing rules document for supervisory reporting, and Single Rulebook Question and Answer (Q&A) updates in July 2022.
The European Insurance and Occupational Pensions Authority (EIOPA) published Version 2.8.0 of the Solvency II data point model (DPM) and XBRL taxonomy.
The European Union published, in the Official Journal of the European Union, an opinion from the European Economic and Social Committee (EESC); the opinion is on the proposal for a regulation to amend the Capital Requirements Regulation (CRR).
HM Treasury published a draft statutory instrument titled “The Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022,” along with the related explanatory memorandum and impact assessment.