The upcoming LEI Conformity Flag is a binary indicator for the completeness and quality of the LEI record as determined against the registration and reporting policies set by the LEI ROC (Regulatory Oversight Committee).
The flag is an important addition to the LEI record for many reasons. As it will only be active when the LEI is in overall conformity, it will give enhanced trust and reliability for the LEI reference data it represents. It will help anyone (or anything) relying on the LEI data to make more informed decisions. It will encourage LEI holders to keep their LEI active, up to date and accurate – an obvious benefit to the entire LEI ecosystem.
Over time, the flag will be added to all LEI records. Obtaining the conformity flag requires successful checks against a number of reporting criteria which will be officially published by the LEI ROC in coming months as the ecosystem prepares for implementation in 2021.
We expect that checking for the presence of the conformity flag checks will quickly become a critical part of any LEI-based KYC, onboarding, or other identity verification workflows.