About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

CounterpartyLink Fattens Legal Entity Data Feed to Support Regulatory Compliance

Subscribe to our newsletter

CounterpartyLink is helping users of its legal entity data meet regulatory compliance and risk requirements with the addition of deeper beneficial ownership information and the inclusion of CFTC Interim Compliant Identifiers (CICIs) in its data feed.

Additional data fields to support the extended information have been included in the legal entity database that CounterpartyLink distributes to its customers on a daily basis and also makes available online for ad hoc access via its recently introduced CPL Online tool. The expanded legal entity ownership information improves on provision of data covering owners of 25% of an entity, as required by the third European Union Anti-Money Laundering Directive, to cover owners of 10% of an entity, a requirement that is introduced in the Foreign Account Tax Compliance Act (Fatca) that comes into effect on 1 January 2013.

In preparation for the March 2013 introduction of a global legal entity identifier (LEI) system aimed at curbing systemic risk, CounterpartyLink has added CFTC CICI identifiers, which are expected to be the precursors of LEIs, to the legal entity database and will continue to do so as they are issued. The company is providing more reference data around legal entities than has so far been proposed for the LEI system and the database can be searched in real time using CICIs, and later LEIs.

CounterpartyLink managing director James Redfern, explains: “Both buy-side and sell-side institutions use the legal entity data feed. At the moment, the focus is on know-your-customer checks, which everyone must do, and on client on boarding, but there is more regulation to come that requires accurate legal entity information, such as the Dodd-Frank and Fatca acts.” Redfern also points to the need for accurate entity identification and information to improve risk management and, at a basic level, to support good business practice.

The expanded legal entity data feed incurs no additional cost above existing annual subscriptions and provides users with information on 150,000 live entities that are subscribed to by users and a total of 350,000 entities when the entities’ parent hierarchies are included.

Redfern says companies such as Dun & Bradstreet and Avox are often perceived as competitors to CounterpartyLink, but suggests the reality is that the company’s services are not used to knock out competitors, but to replace in-house efforts to build legal entity databases. “We reduce the burden of collecting and maintaining legal entity data. Our aim is to commoditise it. Our sweetspot is low and medium-risk entities, leaving our clients to focus on data around high-risk entities,” he says.

Playing to its strengths as a legal entity data provider that sources directly from primary sources, such as registration authorities, regulators and exchanges, CounterpartyLink’s next development is a rating type of indicator that will inform users of the company’s legal entity data about the level of completeness of a record in terms of data from primary sources.

Subscribe to our newsletter

Related content

WEBINAR

Upcoming Webinar: How to ensure employees meet fit and proper requirements under global accountability regimes

Date: 17 September 2024 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes Fitness and proprietary requirements for employees of financial institutions are not an option, but a regulatory obligation that calls on employers to regularly assess employees’ honesty, integrity and reputation, competence and capability, and financial soundness. In the UK, these...

BLOG

Cappitech Regulatory Reporting Survey Insights

By Struan Lloyd, managing director, head of S&P Global Market Intelligence. Recently, we conducted our 6th annual Cappitech Global Regulatory Reporting Survey that aims to capture the pulse of the trade and transaction reporting industry. The survey results were released at the end of 2023 and revealed that lack of resources and poor data quality...

EVENT

Buy AND Build: The Future of Capital Markets Technology, London

Buy AND Build: The Future of Capital Markets Technology London on September 19th at Marriott Hotel Canary Wharf London examines the latest changes and innovations in trading technology and explores how technology is being deployed to create an edge in sell side and buy side capital markets financial institutions.

GUIDE

FATCA – The Time to Act is Now

The US Foreign Account Tax Compliance Act – aka FATCA – raised eyebrows when its final regulations requiring foreign financial institutions (FFIs) to report US accounts to US tax authorities were published last year. But with the exception of a few modifications, the legislation remains in place and starts to comes into force in earnest...