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

Despite Lack of Standards, Legal Entity Data Will Become Centre of Data Operations

Subscribe to our newsletter

Although standards for legal entity data are likely to evolve over time and become more rigorous, there does not exist today a standard directory of identifiers for legal entities across global jurisdictions, said James Redfern, head of sales and marketing at CounterpartyLink. But with an average of 27% of company records held at financial institutions deemed inaccurate, firms need to figure out how to fix these problems and then continue to maintain the database in the absence of any industry standard, particularly in current conditions, he suggested.

Redfern said, “The entity is the key element in the middle; it will become the centre of data operations.” Key to managing entity data is getting the linkages right, he said, referring to both the linking of entity data, which can quickly become complex, but also linking of disparate sources to gather that information, be that the registration authorities, regulators, exchanges, or other sources. Said Redfern, “But the linkages are rendered worthless if the data it is linked to is inaccurate or not fit for purpose.”

He promoted CounterpartyLink’s Client Data Audit Report as a useful independent auditing service that could be used within business cases for senior management. But the audit can also be very useful for helping to prioritise cleansing and maintenance work, for example prioritising the higher risk entities over those with lower risk or less exposure.

Through conducting such audits for clients, Redfern said that the most common areas for data impurities were: ownership (12%), company name (8%), registered address/headquarters (7%), regulator (6%), registration (5%), and identifiers (4%).

At least one senior member of the US Federal Reserve had highlighted entity data as a key ‘broken’ factor in risk assessment, perhaps indicating a likelihood of further examination of the issue and potential regulation down the line. But as Redfern pointed out, “It is beneficiary to have standards, but business will continue without them.”

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Solvency II Update: Are we effectively meeting the regulatory data requirement?

Nine months on from the January 2016 Solvency II compliance deadline, insurance firms and asset managers should have satisfactory responses to the regulation in place. But how effectively are they meeting the regulatory data requirement for the look-through and reporting elements of the regulation, and how best can they achieve not only compliance, but also...

BLOG

ace Seeks to Disrupt the Very Idea of ‘Digital’ for Financial Institutions

For more than a decade, financial institutions have been told to go digital. Data strategies have been written, platforms migrated to the cloud, and front-end experiences wrapped in slick apps. But for Niamh Kingsley, founder of ace, that conversation is already out of date. Her new firm, launched in November as a specialist post-digital advisory...

EVENT

Data Management Summit London

Now in its 16th year, the Data Management Summit (DMS) in London brings together the European capital markets enterprise data management community, to explore how data strategy is evolving to drive business outcomes and speed to market in changing times.

GUIDE

Best Practice Client Onboarding

Client onboarding is central to the success of banks, yet it continues to present challenges and the benefits of getting it right are difficult to achieve. The challenges arise from siloed systems, manual processes and poor entity data quality. The potential benefits of successful implementation include excellent client experience, improved client acquisition and loyalty, new business opportunities, reductions in costs, competitive advantage, and confidence in compliance.