GLEIF Data Quality Management
The Financial Stability Board (FSB) has reiterated that global adoption of the Legal Entity Identifier (LEI) underpins “multiple financial stability objectives” such as improved risk management in firms as well as better assessment of micro and macro prudential risks. As a result, it promotes market integrity while containing market abuse and financial fraud. The FSB also stressed that LEI rollout should support “higher quality and accuracy of financial data overall”.
The LEI connects to key reference information that enables clear and unique identification of legal entities participating in financial transactions. Simply put, the publicly available LEI data pool can be regarded as a global directory that greatly enhances transparency in financial markets. The data pool’s ability to meet this objective relies on the availability of trusted, open and reliable data.
The Global Legal Entity Identifier Foundation (GLEIF) is responsible for monitoring and ensuring high LEI data quality. In cooperation with its partners in the Global LEI System, GLEIF focuses on further optimizing the quality, reliability and usability of LEI data empowering market participants to benefit from the wealth of information available with the LEI population.
GLEIF makes available the following monthly data quality reports:
- Global LEI Data Quality Reports: These reports demonstrate the overall level of data quality achieved in the Global LEI System.
- LEI Issuer Data Quality Reports: These reports analyze the level of data quality achieved by the individual LEI issuing organizations.
The ‘Data Quality Reports’ section on the GLEIF website contains more information on the GLEIF data quality reports, including: Quality criteria and associated definitions; checks performed; and the methodology used to derive the LEI Total Data Quality Score.
The GLEIF data quality management program ensures that the LEI remains the industry standard best suited to providing open and reliable data for unique legal entity identification management.
Comments or questions on the GLEIF data quality management program are invited by email to firstname.lastname@example.org.
Ensuring high data quality
The process of ensuring LEI data quality starts with the registering entity. Through self-registration, the registering entity must provide accurate legal entity reference data. It is then the responsibility of the LEI issuing organization to verify the legal entity reference data with the local authoritative source, e.g. a Business Register, and issue an LEI compliant with the LEI standards.
Annual renewal process
Data quality is also ensured via the annual LEI renewal process. While the legal entity is required to notify the managing LEI issuing organization when changes occur to its legal entity reference data, the annual renewal process ensures that, at a minimum, the legal entity and the LEI issuing organization review and re-validate the legal entity reference data.
GLEIF will further enhance data quality through data quality rule setting, monitoring and reporting as well as the development of its Global LEI Repository.