In its drive to encourage voluntary adoption and use of LEIs across a broader portfolio of non-regulatory banking business lines, GLEIF has identified an opportunity to introduce efficiencies by creating a new operating role within the Global LEI System.
The Validation Agent role allows financial institutions to obtain and maintain LEIs for their clients in cooperation with accredited LEI Issuer Organizations by leveraging their business as usual client identification procedures in Know Your Customer (KYC), client onboarding or standard client refresh update processes.
The goal of the Validation Agent role is to streamline the LEI issuance process and, in doing so, deliver a multitude of benefits for legal entities, LEI Issuers and financial institutions that serve legal entities as clients.
Benefits to financial institutions becoming Validation Agents include:
- Faster and more efficient customer experience offering when onboarding clients and performing refresh updates. An end to client frustration due to process duplication.
- Additional opportunities to add client value and achieve market differentiation.
- Enhanced internal data management processes, greater consistency, reduced costs.
- Accelerated digital transformation.
Any financial institution that serves legal entity clients may apply to become a Validation Agent.
The Validation Agent role is designed to remove the duplication of processes across a financial institution’s client onboarding and LEI issuance, resulting in a simpler, faster and more convenient experience for financial institutions and their clients, enabled by a more efficient LEI issuance process.
The Validation Agent Framework has been introduced following extensive consultation with GLEIF’s Globally Important Financial Institutions (GIFI) Relationship Group.
GLEIF is actively engaging with the global banking community to support trials of the Validation Agent Framework and is now inviting financial institutions to enquire about participation within the trial phase and encourages immediate dialogue from interested parties.