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

Opinion: Proven Main Street Solution Proposed for Global Financial Identification

Subscribe to our newsletter

By Allan Grody and Bob Carpenter

There is a business model in existence today that has been around for nearly four decades and that has solved the unique identification problem in the global commercial trade supply chain. Now in partnership with our respective firms, we are proposing to share this system with regulators and the financial services industry for solving the same problem in the global financial supply chain.

GS1 has uniquely, unambiguously and universally identified 1.5 million companies and 40 million products across 25 diverse global industries. The same numbers and system, already an ISO sanctioned standard that is used to identify these businesses today are proposed for use as the legal entity identifier (LEI) for the US Treasury’s Office of Financial Research, and the analogous unique counterparty identifier (UCI) for the Commodity Futures Trading Commission (CFTC) and the unique identifier code (UIC) for the Securities and Exchange Commission (SEC).

GS1 operates a federated model with member organisations in 110 countries. The federated model allows for local involvement and, where required, local regulatory oversight. However, it operates its self-registering numbering assignments from a single pool of numbers administered through a distributed data model, thus assuring global uniqueness.

The UK cabinet office’s interest in competing identity assurance services fits well with our proposal to have public auditors apply their assurance function to the LEI and its minimum data attributes. These attributes are quite basic, mainly company name, address, postal code and such. The powerful element is the uniqueness of the number and its mandated global use in reporting data to regulators.

We also see XBRL playing a role in creating templates for the LEI so that it can be “certified” at its source of origination. This is not unlike XBRL’s role in annual report submissions, one of the most successful automation efforts in global regulatory reporting. Coupled with GS1’s success with global identification, also described as one of the more successful business automation efforts ever, the long overdue journey toward resolving the reference data identification issue will be well on its way.

Subscribe to our newsletter

Related content

WEBINAR

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

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 requirements are a core element of the Senior Managers and Certification Regime (SMCR). They are also...

BLOG

FSB Study Puts the Spotlight on NBFI Shadow Banking Risk

By Wenzhe Sheng, Senior Product Manager of Regulatory Tech at Clearwater Analytics. The Financial Stability Board (FSB), the global sentinel of financial stability, recently released findings that have likely sent ripples of unease through insurers, pension funds and asset managers. According to the study, these firms now face the unsettling prospect of being labelled as...

EVENT

AI in Capital Markets Summit London

The AI in Capital Markets Summit will explore current and emerging trends in AI, the potential of Generative AI and LLMs and how AI can be applied for efficiencies and business value across a number of use cases, in the front and back office of financial institutions. The agenda will explore the risks and challenges of adopting AI and the foundational technologies and data management capabilities that underpin successful deployment.

GUIDE

Regulatory Data Handbook 2024 – Twelfth Edition

Welcome to the twelfth edition of A-Team Group’s Regulatory Data Handbook, a unique and useful guide to capital markets regulation, regulatory change and the data and data management requirements of compliance. The handbook covers regulation in Europe, the UK, US and Asia-Pacific. This edition of the handbook includes a detailed review of acts, plans and...