The GLEIF (Global Legal Entity Identifier Foundation) was established in June 2014 as a not-for-profit organization with purpose to act as the operational arm of the Global Legal Entity Identifier System in connection with implementation and use of LEI, it authorises and monitors the Local Operation Units (LOU) connected in the LEI codes system. It also provides for technical infrastructure needed to unify the publicly available information on LEIs disclosed by the Local Operation Units. Centrálny depozitár cenných papierov SR, a.s. provides services related to allocation and renewal of the LEI codes from 2015; in January 2018 it was successfully accredited by the GLEIF for provision of LEI codes in the Slovak and Czech jurisdiction.
The GLEIF improves data quality and also data structure regularly, according to resolution of the Regulatory Oversight Committee (ROC), which during years 2019 and 2020 decided on several changes, implementation of which, based on an agreement with the GLEIF, was mandatory for all LOUs by the end of March 2022 at latest. And all LOUs, based on an agreement with the GLEIF, were obliged to implement the changes by the end of March 2022 at latest
The main change applicable only to LOUs, but not to the LEI subjects, was additional accreditation of all LOUs assigning LEI codes to units and investment funds. The process of additional accreditation started in June 2021. CDCP SR successfully finished its accreditation for funds under the Slovak jurisdiction on 17 February 2022.
Other changes are related to enhancement of the structure and quality of data on LEI subjects. Changes were made in three major areas. The first area covers state administration bodies. Identification as a governmental body has been sufficient by now. Under the latest rules, these have to be identified in more detail in accordance with the methodology for the System of National Accounts 2008 (SNA 2008). It means that the basic structure will divide the entities to central state administration bodies, state administration bodies, regional administration bodies and social insurance bodies.
The second area impacted by the changes are the unit trusts, in case of which the structure of data reported to the GLEIF, and available to the general public, was also enhanced. So far, the LEI entity identify itself as a fund type entity. Currently will be identified and disclosed a fund manager, or umbrella fund, and also type of the fund (e.g. fund or sub-fund).
The third important area is implementation of standardised events for companies, i.e. range of events known under the term „Corporate Actions“. Events as are change in business name, change of title, change of legal form and many others will be disclosed to the public. To ensure unique identification of the events, these will be numbered and reported.
As a consequence of the changes, the LEI entities will be asked to fill-in additional information during their next regular renewal of the LEI code. Provision of the information will be a condition for renewal of the LEI code validity. Some required data, e.g. date of establishment of a fund/company will be populated by our web application in order to facilitate renewal of the LEI code.
The purpose for implementation of these changes is to obtain better and more detailed understanding of LEI entities data structure. Outside the Slovak jurisdiction, for instance, were cases when the LEI entity classified as a unit trust was not compliant with conditions to be registered as a fund. The mentioned changes will improve verification of data on LEI entities, what will contribute to more precise and reliable GLEIF database. These changes will be appreciated by every person using the GLEIF database, i.e. general public, mainly from the capital market.
Author: Ľubomír Demčák
