Implementing the Global Legal Entity Identifier (LEI) System - A Charter for the Regulatory Oversight Committee and Report on Progress
Note for the G20 Finance Ministers and Central Bank Governors meeting 4/5 November 2012
This note seeks the endorsement of the G20 Finance Ministers and Central Bank Governors for the draft Charter for the Regulatory Oversight Committee of the Global LEI System. The draft has been approved by the FSB and is provided in the Annex. Endorsement of the Charter is the key first step in the implementation timeline of the Global LEI System. Approval by the G20 Finance Ministers and Central Bank Governors will initiate the process for the ROC to be formed. In turn, formation of the ROC as the permanent governance arrangement for the LEI system is a prerequisite for the creation of the global LEI foundation and the operational structure.
The note also provides a short progress report on other major elements of the LEI work programme within three broad work areas: governance; operations; and relationship data.
Following endorsement of the FSB report "A Global Legal Entity Identifier for Financial Markets" and its recommendations at the Los Cabos Summit, the FSB has been tasked by G20 Leaders to take forward the planning and development work to launch the Global LEI System by March 2013. In particular, the Los Cabos D eclaration highlighted:
'We endorse the FSB recommendations regarding the framework for development of a global legal entity identifier (LEI) system for parties to financial transactions, with a global governance framework representing the public interest. The LEI system will be launched by March 2013 and we ask the FSB to report on implementation progress by the November 2012 Finance Ministers and Central Bank Governors' meeting. We encourage global adoption of the LEI to support authorities and market participants in identifying and managing financial risks.'
To take the work forward, the FSB formed an LEI Implementation Group (IG) drawn from the global regulatory community. The IG is collaborating closely with private sector experts through which includes over 200 members from 25 jurisdictions(see Appendix 1 for charts of break-down by region and participant type). Continue reading