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Our Number’s Up!A discussion on registry numbering and thepotential impact of the LEI on businessregistries.
A PLAN (OF SORTS) FOR THIS TALK• Registry Numbering - what we all know• The Legal Entity Identifier (LEI) – what  is it?• ...
THE A B C (OR 1 2 3) OFREGISTRY NUMBERING
SIMPLE NAVIGATION• Keep the options simple and clear• Always show where you are on the site
THE LEGAL ENTITY IDENTIFIER (LEI)       – WHAT IS IT? TO BREATHE• Clean design simplifies rather than confuses• Makes a si...
WHO MAKE UP THE FSB?
WHO MAKE UP THE FSB? CONTD.International Organisations• Bank for International Settlements (BIS)• European Central Bank (E...
HOW WILL THEY BE ISSUED?We need some acronyms…• ROC – Regulatory Oversight Committee• COU – Central Operating Unit• LOU – ...
REGULATORY OVERSIGHT             COMMITTEE• Has been established and has now taken formal  control of the Global LEI Initi...
CENTRAL OPERATING UNIT•   Operational arm of the Global LEI System•   Will likely be a not for profit legal entity•   Cont...
LOCAL OPERATING UNIT• Primary Interface for entities wishing to register for an  LEI• Will offer facilities such as:   –  ...
PRE-LOUSpre-LOUs have been given permission to issue pre-LEIs (that comply with the ISOstandard):•   Depository Trust and ...
FUNDING FINANCE FEES• Self sustaining model• A local discretionary charge and…• A common fee to support COU and ROC.• The ...
AN EASY NUMBER TO REMEMBER…•   Characters 1-4: A four character prefix allocated uniquely to    each LOU.•   Characters 5-...
AN EASY NUMBER TO REMEMBER•   The official name of the legal entity;• The address of the headquarters of the legal entity;...
AN EASY NUMBER TO REMEMBER…
WHO WILL BE LEI’D ?Any legal entity that enters into a financial transaction will be eligible for anLEI. For example:•   T...
WHAT ARE PEOPLE SAYING?• Tracking entities could be more accurate if the legal  entity identifier (LEI) gets linked to oth...
WHAT ARE PEOPLE SAYING?• Issues with the potential variations that could result with  different local operating units (LOU...
WILL IT MATTER IN THE END?
WHAT WILL THE LEI MEAN      FOR BUSINESS REGISTRIES?The 1000,000 dollar question…Registries might become LOUsRegistries ca...
THE QUESTION I CAN’T ANSWER• When will it impact (if at all) on business registries?
THANK YOUAdditional resources/ reading on the LEI:• Visit the Financial Stability Board’s website at       http://www.fina...
Enjoy your conference and Auckland,    home of The Registry People
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New Zealand | LEI Registry Numbering in the Future (Justin Hygate)

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New Zealand | LEI Registry Numbering in the Future (Justin Hygate)

  1. 1. Our Number’s Up!A discussion on registry numbering and thepotential impact of the LEI on businessregistries.
  2. 2. A PLAN (OF SORTS) FOR THIS TALK• Registry Numbering - what we all know• The Legal Entity Identifier (LEI) – what is it?• The LEI – what will it mean for business registries?• Will it matter in the end?
  3. 3. THE A B C (OR 1 2 3) OFREGISTRY NUMBERING
  4. 4. SIMPLE NAVIGATION• Keep the options simple and clear• Always show where you are on the site
  5. 5. THE LEGAL ENTITY IDENTIFIER (LEI) – WHAT IS IT? TO BREATHE• Clean design simplifies rather than confuses• Makes a site fast and easy to navigate
  6. 6. WHO MAKE UP THE FSB?
  7. 7. WHO MAKE UP THE FSB? CONTD.International Organisations• Bank for International Settlements (BIS)• European Central Bank (ECB)• European Commission (EC)• International Monetary Fund (IMF)• Organisation for Economic Co-operation and Development (OECD)• The World BankInternational standard-setting bodies and other groupings• Basel Committee on Banking Supervision (BCBS)• Committee on the Global Financial System (CGFS)• Committee on Payment and Settlement Systems (CPSS)• International Association of Insurance Supervisors (IAIS)• International Accounting Standards Board (IASB)• International Organization of Securities Commissions (IOSCO)
  8. 8. HOW WILL THEY BE ISSUED?We need some acronyms…• ROC – Regulatory Oversight Committee• COU – Central Operating Unit• LOU – Local Operating Unit
  9. 9. REGULATORY OVERSIGHT COMMITTEE• Has been established and has now taken formal control of the Global LEI Initiative from FSB• Met in Toronto in January 2013 and adopted a Charter• Needs to create the Global LEI Foundation which will operate the COU
  10. 10. CENTRAL OPERATING UNIT• Operational arm of the Global LEI System• Will likely be a not for profit legal entity• Controlled by a Board of Directors (BOD)• May outsource any particular function, having regard to the public good nature of the system.
  11. 11. LOCAL OPERATING UNIT• Primary Interface for entities wishing to register for an LEI• Will offer facilities such as: – local registration, – validation, – maintenance of reference data – and will facilitate the use of local languages and organisation types.
  12. 12. PRE-LOUSpre-LOUs have been given permission to issue pre-LEIs (that comply with the ISOstandard):• Depository Trust and Clearing Corp & SWIFT DTCC/SWIFT CICI 5493 (USA)• WM Datenservice 5299 (Germany)• Central Bank of Ireland Irish Stock Exchange 6354 (Ireland)• Palestine Securities Exchange 1392 (Palestine)• Takasbank 7890 (Turkey)
  13. 13. FUNDING FINANCE FEES• Self sustaining model• A local discretionary charge and…• A common fee to support COU and ROC.• The cost of obtaining an LEI should be modest and not a barrier to acquisition• Access to the LEI and associated reference data will be free and open to all users
  14. 14. AN EASY NUMBER TO REMEMBER…• Characters 1-4: A four character prefix allocated uniquely to each LOU.• Characters 5-6: Two reserved characters set to zero.• Characters 7-18: Entity-specific part of the code generated and assigned by LOUs according to transparent, sound and robust allocation policies.• •Characters 19-20: Two check digits as described in the ISO 17442 standards.
  15. 15. AN EASY NUMBER TO REMEMBER• The official name of the legal entity;• The address of the headquarters of the legal entity;• The address of legal formation;• The date of the first LEI assignment;• The date of last update of the LEI;• The date of expiry, if applicable.
  16. 16. AN EASY NUMBER TO REMEMBER…
  17. 17. WHO WILL BE LEI’D ?Any legal entity that enters into a financial transaction will be eligible for anLEI. For example:• Transacting entities• Issuing entities• Reference entities• Reporting entities• Ultimate parent entitiesOther participants in financial transactions (including exchanges, utilities,registrars, regulators, and industry organizations) will obtain LEIs asdeemed necessary in the future. Individuals (i.e., natural persons) areexcluded from LEI’s scope.
  18. 18. WHAT ARE PEOPLE SAYING?• Tracking entities could be more accurate if the legal entity identifier (LEI) gets linked to other key identifiers.• There are concerns about identifier duplications, discrepancies between the local operating units (LOUs) being set up to administer the LEI, and costs for the whole effort.• An underlying country-specific registration ID could increase the accuracy of identifiers
  19. 19. WHAT ARE PEOPLE SAYING?• Issues with the potential variations that could result with different local operating units (LOUs) administering the LEI.• The Central Operating Unit (COU) will have to carefully monitor the LOUs, LOU operations should be synchronized to have a single LEI database.• The basic issues with LEI implementation include costs, of course. Costs will come from a host of areas, including systems integration, data migration, internal systems adoption, data remediation and data governance, according to participants in the roundtable
  20. 20. WILL IT MATTER IN THE END?
  21. 21. WHAT WILL THE LEI MEAN FOR BUSINESS REGISTRIES?The 1000,000 dollar question…Registries might become LOUsRegistries can consume LEIs (xml feed)Registries might reference LEIs (as part of the searchdata)Registries might not do anything
  22. 22. THE QUESTION I CAN’T ANSWER• When will it impact (if at all) on business registries?
  23. 23. THANK YOUAdditional resources/ reading on the LEI:• Visit the Financial Stability Board’s website at http://www.financialstabilityboard.org/• A Global Legal Entity Identifier for Financial Markets (8 June 2012) http://www.financialstabilityboard.org/publications/r_120608.pdf• White paper on Legal Entity Identifiers from Thomson Reuters. http://thomsonreuters.com/content/news_ideas/white_papers/financi al/legal_entity
  24. 24. Enjoy your conference and Auckland, home of The Registry People

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