LEIs will hit hurdles

Author: Ashley Lee | Published: 24 Jan 2013

The global legal entity identifier (LEI) system, spearheaded by a group of global financial trade associations, will launch by March 2013. But much must be resolved before regulators worldwide can issue LEIs.

The need for corporate IDs was born out of the financial institution collapses during the global crisis, when regulators were unable to determine which other institutions had transacted with, and be impacted by, the failed bank.

"The LEI is a single tool that shines some light where things have been very opaque in the past," says Rebecca Terner, executive director of policy and regulatory affairs at the Asia Securities & Financial Markets Association (Asifma). "While it's not the panacea that's going to save the world, it does play an integral role...