Updates to LEI reporting for Funds and Investment Fund structures

A Legal Entity Identifier (LEI) is a 20-digit digital business identifier that helps us verify the accuracy and completeness of each business.

LEI announced by financial traders is managed to clearly identify “who is who”. LEI is supported by the G20, the Financial Stability Board (FSB), which is officially supported by institutions such as the European Central Bank and the Bank of England. It is also the official ISO 17442 standard.

Its use is the obligation of market participants under more than 116 regulations worldwide, including those involved in securities trading, derivatives trading and financial instrument trading, among many others.

However, the scope of LEI far exceeds that. It has been described by GLEIF as “the Swiss Army Knife for the Digital World Economy”.

Updates to LEI Reporting

On March 1, 2022, the LEI ROC (Regulatory Oversight Committee) released a new Common Data File (CDF) format. LEI Worldwide has implemented changes to its LEI RAMP management platform.

RAMP is a special software tool used by financial institutions such as banks, wealth managers, and fund management companies that manage large LEI portfolios. RAMP makes it easier and faster to obtain TEI and keep control of the LEI portfolio.

Report on the structure of the LEI fund

One of the important changes to LEI reporting is that a complex fund structure will now be able to report on its structure more transparently.

Funds must have an LEI code according to some international rules such as the European Union Fund for Alternative Investment Fund Managers (AIFM) and US regulations such as IV. section of the US Dodd-Frank Act

In a policy issued by ROC LEI entitled “Fund Relations Policy and Guidelines for Registration of Investment Funds in the International LEI System,” RIC states that a significant percentage of LEI holders are investment funds.

The report describes a limited update on how investments affecting investment funds are registered in the international LEI system (GLEIS), in order to ensure that the implementation of connection data is in line with GLEIS and to provide a means to facilitate the standard collection of such goods. information on communication with funds around the world “.

This update enables more detailed relationship data between entities under the entity types of ‘Fund Management Entity’, ‘Umbrella Structure’ and ‘Master Feeder’ funds.

The additional element of the new fund structure has not yet been implemented by all LOU or LEI issuers and has not yet been implemented. This means that funds may need to consider transferring their TEI to a provider who complies with this new policy when renewing the TEI. Please complete the LEI transfer application here to convert your current LEI to RAMP which will facilitate the new requirements.

Another change to the CDF file format is that regulatory agencies, non-financial, government agencies can design their own infrastructure and every day enterprise is a very important new area for all companies that need an LEI code. .

Most new data will be added to the current LEI with annual LEI updates, so it took GLEIF a year to update the system to the new domain and new requirements.