If you are responsible for managing your firm’s legal entity data, make a new year’s resolution to get an LEI audit in 2020. This post is a quick take on what an LEI audit is and why all firms can benefit from one. An LEI audit is an annual checkup for your data Just like a yearly physical checkup provides insights into your health, an LEI audit offers insights into the health (i.
LEI monitoring is the automated surveilling of the global legal entity identifier system for data updates that impact your firm. For example, when a client changes its legal name or jurisdiction, an LEI monitoring solution alerts systems and staff of the change. In my extensive discussions on LEI data, I’ve encountered four misconceptions about monitoring which I list and rebut below.
After an LEI is issued, the data associated with it can change. A counterparty could amend its legal name or change jurisdiction. Or, a corporate action might result in a new LEI for a client. These sorts of updates are more varied and frequent than is generally recognized. Failing to update in-house data to reflect these changes can result in a hefty fine, trade breaks, or unrecognized risk exposures.