GLEIF Introduces Policy Conformity Flag Initiative

GLEIF introduces the Policy Conformity Flag initiative to increase transparency in global financial markets. The Policy Conformity Flag is a simple, clear tool for global data users to determine whether individual LEI records meet certain Regulatory Oversight Committee (ROC) policies. The ROC coordinates and oversees the Global LEI System.

The Policy is a compelling opportunity to encourage and promote enhanced transparency in transactions via the current and complete reporting by legal entities of open, standardized, and high-quality legal entity reference data available to users and maximizing the transparency and trust among market participants.

An LEI labelled as ‘conforming’ indicates the following criteria have been met:
 

• LEI registration is current – the LEI registration has been timely renewed.
• Level 2 reporting is complete – the legal entity has reported data on its direct and ultimate parents, or one of the acceptable reasons for not reporting this data.

The Benefits of the Policy Conformity Flag:
 

• Fighting financial crime – the Policy Conformity Flag promotes increased accuracy and completeness that enable critical data sets to be more efficiently shared and matched, thereby enabling the enhanced analytics needed to detect and combat financial crime.
• Monitoring market risk – the Policy Conformity Flag permits easier detection of interconnections and the analytics needed to monitor risks in financial markets.
• Enhancing Operational Processes - the Policy Conformity Flag enhances transparency of policy compliance relevant to operational processes including more timely analysis thereby reducing transaction failures, lowering dataset connectivity, reconciliation, cleaning, and aggregation costs; and trimming reporting costs.