What is Asia’s risk management number?
Nicholas de Boursac, CEO of the Asia Securities Industry & Financial Markets Association (ASIFMA) feels the FSB and G20 will advise members to implement a universal Legal Entity Identifier by end 2012. November 10, 2011 | Nicholas de BoursacIn the wake of the global financial crisis, key international regulatory bodies, such as the FSB, the G20 and IOSCO, have recognized the need for a global approach in compiling data to identify counterparties to transactions and allow for more comprehensive monitoring of such transactions and entities. Many if not all jurisdictions assign a reference number or code to legal entities upon registration, but currently no standardized international code exists that consistently identifies an entity, regardless of jurisdiction. Without such a standard, regulators cannot efficiently and swiftly communicate among themselves regarding issues related to the monitoring or aggregation of activities or exposures across jurisdictions. Good data leads to good analysis, which is the lifeblood of effective surveillance. Market participants also stand to benefit from a universal Legal Entity Identifier (LEI) system, since it will improve reference data quality and significantly enhance operational efficiencies around legal entity data management, such as aggregation of counterparty data, risk modeling, and hierarchy management. In addition, this will allow firms to offer improved customer service through enhanced customer on-boarding and more efficient corporate action management, among other practices. Over time, use of global LEIs will no doubt also improve the straight-through processing of transactions. To address the need for enhanced monitoring, a group of international financial industry associations, with input from regulators, developed a coordinated approach to counterparty identification based on a unique 20-digit code that would be assigned to all entities through the application of specifically developed ISO standard for LEIs, namely ISO 17442 (to be released early in 2012). This effort, commonly referred to as the LEI solution, is gaining momentum rapidly. In addition to a unique code for each legal entity, a limited amount of data ... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Data & Analytics, Data Management, Remuneration, Risk & Performance, Risk and RegulationData & Analytics,Data Management,Remuneration,Risk & Performance,Risk and Regulation, Data & Analytics,Data Management,Remuneration,Risk & Performance,Risk and Regulation, Keywords:Nicholas De Boursac, ASIFMA, Legal Entity Identifier, FSB, G20, IOCSO, Compiling Data, HKMA Nicholas de Boursac, ASIFMA, Legal Entity Identifier, FSB, G20, IOCSO, Compiling Data, HKMA
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