The newly introduced Policy Conformity Flag is seen by the GLEIF as a key mechanism to ensure compliance and reliability of Legal Entity Identifier (LEI) data. The flag is displayed in the publicly accessible LEI database and is designed to enhance the quality and trustworthiness of the LEI system by providing a clear indication of an LEI’s compliance with the Regulatory Oversight Committee (ROC)’s standards and policies.
The Policy Conformity Flag is binary. Either an LEI record conforms, or it does not. An LEI carrying the “Conforming”
- LEI registration is current – the LEI registration has been renewed in a timely manner.
- Accelerate the identifiability of legal entities across global marketplaces and data-driven investing
- Enable easier due diligence via up-to-date party information, especially for cross-border transactions
- Level 2 reporting is complete – the legal entity has reported data on its direct and ultimate parents, or provided one of the acceptable reasons for not reporting this data.
- Advance the ability to detect and monitor risks via connections across entities
- Easy-to-use measure of corporate transparency
Using the Policy Conformity Flag
Information on conformity is included within LEI search details (see below), GLEIF Golden Copy Files, and GLEIF API.
The GLEIF has published an interactive Policy Conformity Flag dashboard for stakeholders to gain insights across the LEI ecosystem. Use the dashboard to identify non-conforming records and statistics on conformity levels across each LEI Issuer.
Conclusion – make sure you achieve Policy Conformity
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.
Ubisecure RapidLEI and our partners are here to help you! If your LEI record is showing non-conformity get in touch and we can help you. At launch of the initiative, identifying why a record is not conforming is very easy – either your LEI has lapsed or you have not completed the level 2 reporting. We can help you with both!
You can find more on the Policy Conformity flag at the GLEIF website.
