This Recommendation on the use of the Legal Entity Identifier (LEI) requires all entities for which information is required under EU reporting obligations to obtain a pre-Legal Entity Identifier (pre-LEI) code for reporting purposes.
Documents
Final and translated into the EU official languages
The European Banking Authority (EBA) launches today a consultation on a Recommendation on the use of the Legal Entity Identifier (LEI). The document will require all entities for which information is required under EU reporting obligations to obtain a pre-Legal Entity Identifier (pre-LEI) code for reporting purposes.
In the course of 2014, the EBA will receive supervisory data for a large sample of banks in the context of the Implementing Technical Standards on Supervisory Reporting (ITS). A single supranational identifier of banks needs to be chosen in order to collect and store the data that will be submitted to the EBA.
There is widespread agreement at global level on the need for a uniform system for legal entities identification. The Financial Stability Board (FSB) coordinates regulatory work at international level to achieve a single system for identifying parties in financial transactions and is taking forward work to launch the Global LEI System (GLEIS). The GLEIS is not yet fully operational, but an increasing number of entities (pre-Local Operating Units, pre-LOUs) already issue LEI-like identifiers (pre-LEIs) that will be eligible to become true LEIs once the GLEIS is fully operational.
The EBA encourages and supports the establishment of the GLEIS. The use of pre-LEIs by the competent authorities when fulfilling their reporting obligations to the EBA will enhance supervisory convergence and ensure the high quality, reliability and comparability of data.
The European Banking Authority (EBA) published today a Recommendation on the use of unique identification codes for supervisory purposes for every credit and financial institution in the European Union. This Recommendation is a major step forward in harmonizing the identification of legal entities, in line with proposals by the Financial Stability Board (FSB) endorsed by the G20, to ensure consistent and comparable data.
In 2013, the EBA finalised Implementing Technical Standards (ITS) on supervisory reporting, which will ensure uniform reporting requirements across all EU Member States in a number of areas such as own funds, financial information, large exposures, liquidity ratios, leverage ratios and asset encumbrance. As of July 2014, all competent authorities shall, therefore, submit the data included in these ITS from a sample of institutions in their respective jurisdictions.
In this process, the EBA recommends that all competent authorities use a single supranational identifier for each credit and financial institution.
This Recommendation supports the adoption of a Global Legal Entity Identification system (GLEIS) proposed by the Financial Stability Board (FSB) and endorsed by the G20, which aims at delivering unique identification of parties to financial transactions across the world.
Considering that the GLEIS is not yet fully operational, the EBA considers that the use of a pre Legal Entity Identifier (pre-LEI) by competent authorities is the best short-term solution, which will enhance supervisory convergence and will contribute to ensuring high quality, reliability and comparability of data. Competent authorities and banks will also benefit from this identification if it were to be extended to banking activities other than supervisory reporting as it would allow authorities to better monitor all kinds of transactions in their jurisdictions and simplify reporting requirements for banks.
Competent authorities must notify the EBA as to whether they comply or intend to comply by 29.03.2014.
This Recommendation supports the adoption of a global Legal Entity Identification system (GLEIS) proposed by the Financial Stability Board (FSB) and endorsed by the G20, which aims at delivering unique identification of parties to financial transactions across the world.
The European Banking Authority (EBA) launches today a consultation on a Recommendation on the use of the Legal Entity Identifier (LEI). The document will require all entities for which information is required under EU reporting obligations to obtain a pre-Legal Entity Identifier (pre-LEI) code for reporting purposes.
In the course of 2014, the EBA will receive supervisory data for a large sample of banks in the context of the Implementing Technical Standards on Supervisory Reporting (ITS). A single supranational identifier of banks needs to be chosen in order to collect and store the data that will be submitted to the EBA.
There is widespread agreement at global level on the need for a uniform system for legal entities identification. The Financial Stability Board (FSB) coordinates regulatory work at international level to achieve a unique system for identifying parties in financial transactions and is taking forward work to launch the Global LEI System (GLEIS). The GLEIS is not yet fully operational, but an increasing number of entities (pre-Local Operating Units, pre-LOUs) already issue LEI-like identifiers (pre-LEIs) that will be eligible to become true LEIs once the GLEIS is fully operational.
The EBA encourages and supports the establishment of the GLEIS. The use of pre-LEIs by the competent authorities when fulfilling their reporting obligations to the EBA will enhance supervisory convergence and ensure the high quality, reliability and comparability of data.