FSB reports Asia Pac firms are lagging in LEI adoption
The Financial Stability Board (FSB) released this week a thematic review on the implementation of the Legal Entity Identifier (LEI), and offers several recommendations to promote a broader LEI adoption. You can read more about LEI in this article.
The FSB writes in this report that 1.4 millions entities are identified by a unique LEI in more than 200 countries since its endorsement by G20 in 2012 (following the global financial crisis).
In these jurisdictions, LEI use is usually implemented in at least one area, and OTC derivatives and securities markets are already covered globally. But outside of these markets, there is not enough coverage to support efficiently new industry or regulatory uses.
LEI adoption also stays uneven depending jurisdictions, with coverage concentrated in Canada, the EU and the US. For instance, a large international bank noted, in a written submission to FSB, that LEI coverage reached 69% for its Europeans customers, 29% in the US, and only 4% in Asia Pacific.
The FSB says several jurisdictions, especially in Asia and emerging economies, have not mandated use of the LEI in any area, making it difficult to convince Asian entities to adopt it.
The FSB urges to make more efforts at both the national and international levels to promote LEI adoption and improve the benefits to authorities and market players from its use by addressing identified obstacles.
Date: 31st May 2019
To read the original report, please click here.
Source : Regulation Asia