The Legal Entity Identifier (LEI) initiative is driven by the Financial Stability Board (FSB) and the finance ministers and governors of central banks represented in the Group of Twenty (G20). The G20 is an informal forum for international cooperation, and consists of 19 major economies plus the European Union.
In 2011, the G20 called on the FSB to take the lead in developing recommendations for a global LEI and a supporting governance structure.
The related FSB recommendations endorsed by the G20 in 2012 led to the development of the Global LEI System that provides unique identification of legal entities participating in financial transactions across the globe.
The FSB recommended the creation of the LEI Regulatory Oversight Committee (LEI ROC) to the G20, which subsequently endorsed the creation of the LEI ROC to uphold the governance principles of the Global LEI System.
In June 2014, the FSB established the Global Legal Entity Identifier Foundation (GLEIF).
Public authorities rely on the LEI to evaluate risk, take corrective steps and, if required, minimize market abuse and improve the accuracy of financial data.