The European Insurance and Occupational Pensions Authority (EIOPA) published today its revised Guidelines on Legal Entity Identifier (LEI), which provide guidance to national competent authorities.
The objective of the revised Guidelines is to facilitate and further promote the use of LEI as unique identification code for legal entities. By harmonising the identification of legal entities ensuring high quality, reliable and comparable data, the Guidelines will continue to establish consistent, efficient and effective supervisory practices.
The scope of the Guidelines is broader compared to the previous one and apart from insurance and reinsurance undertakings and Institutions for Occupational Retirement Provision, relevant branches and intermediaries operating cross-border are now also included. The revised Guidelines also contemplate the use of LEI code for identification purposes when competent authorities provide information to EIOPA.
National competent authorities are expected to apply these revised Guidelines from 1 July 2022 onwards.
LEI is a unique identification code proposed by the Financial Stability Board (FSB) and endorsed by G20 in 2012, aimed at achieving a unique, worldwide identification of legal entities participating in financial transactions.
In accordance with Article 16(3) of the Regulation (EU) 1094/2010, EIOPA may issue guidelines addressed to competent authorities and financial institutions to establish consistent, efficient and effective supervisory practices, while ensuring the common, uniform and consistent application of the law.
Following the introduction of LEI in 2012, the Guidelines on the use of the LEI were first issued in October 2014. Between March and June 2021, EIOPA launched a consultation and identified the need to review its Guidelines due to several reasons:
- EIOPA’s strategy on data and digitalisation, including the need to increase data standardisation, and ongoing implementation of cross-cutting projects within EIOPA where data quality and assessment of interconnectedness is essential;
- Reflection of the principle of proportionality;
- 2020 ESRB Recommendations on identifying legal entities, which focussed on the LEI as a common identifier; and
- 2019 FSB Thematic Review on Implementation of the LEI, which listed some remaining obstacles which prevented wider LEI adoption.
This news item was originally published by the European Insurance and Occupational Pensions Authority (EIOPA). For more information, please see the Source Link.