The Legal Entity Identifier (LEI) is a global reference number that uniquely identifies every legal entity or structure that is party to a financial transaction, in any jurisdiction. The purpose of an established LEI System is to enable regulators to more effectively measure and manage counterparty exposure and thereby better monitor systemic risk. Inevitably, the development of this standard has put a strong focus on the quality of financial institution’s entity and customer data.
Firms that adopt the LEI standard across the organisation will be at a significant competitive advantage. Financial institutions with a group-wide consistent and accurate view of their clients and counterparties are well placed to improve the sales and on-boarding process, improve risk management, and reduce operational costs associated with the downstream impacts of inconsistent and inaccurate data.
Delivering straightforward support for the LEI
The GoldenSource EDM platform delivers simple and straightforward support for the LEI as part of its out-of-the-box functionality, enabling financial institutions to get control of an onslaught of regulatory requirements.
GoldenSource makes LEI enablement possible with a twofold approach. The GoldenSource EDM platform forms the core of LEI enablement, allowing users to add LEI codes as an additional or as their primary entity identifier. This is coupled with GoldenSource's managed Connections service, which includes LEI-related information from all data vendors who have started to provide this data.
Existing GoldenSource Customers quickly and easily take advantage of the ISO17442 standard for LEI; no GoldenSource EDM software upgrade is necessary and Connections updates are provided by GoldenSource as part of the Connections service. New customers to GoldenSource take advantage of LEI support out-of-the-box.
LEI information, when implemented together with GoldenSource capabilities such as our Vendor Data Source Hierarchy capabilities, provides financial institutions of all sizes with a powerful mechanism to achieve a consolidated Entity Master. These institutions are also empowered to successfully overcome the existing challenges associated with issuer matching.