The FDTA Proposal: How the LEI strengthens your business in the financial world

2 september 2024

US financial regulation is about to take a decisive step. The US federal financial regulators have published a proposal to introduce common data standards for financial reporting. This proposal’s heart is the Legal Entity Identifier (LEI) – a globally recognized standard for uniquely identifying companies.

The LEI provides a clear and consistent solution for companies reporting to US regulators to ensure transparency and efficiency. GLEIF (Global Legal Entity Identifier Foundation) encourages all stakeholders to support this proposal and consider applying for an LEI number for your organization. The 60-day comment period ends on October 21 – it’s time to take action and promote the LEI as the central standard.

Why the Legal Entity Identifier (LEI) is indispensable

The Legal Entity Identifier (LEI) is a regulatory instrument and a valuable tool that offers your company many advantages. With an LEI, you benefit from

Increased compliance security:

the LEI makes it easier to fulfil regulatory requirements, which are becoming increasingly important in the US and worldwide.

Transparency and trust:

Unique identification of companies and their relationships builds confidence in your company among customers, partners, and regulators.

More efficient risk management:

The LEI provides a clear overview of corporate structures, which improves risk identification and management.

These advantages make the LEI indispensable to a modern, globally active company. Standardization through the LEI number provides an unprecedented opportunity to improve the quality and accessibility of financial data while strengthening your company’s international presence.

Support the LEI in the FDTA proposal

The proposed integration of the LEI into the FDTA data standards will benefit the US financial sector and your organization; it will also help your organization meet its compliance and transparency requirements efficiently. GLEIF encourages all LEI supporters to raise their voices and support the proposal. At the same time, consider applying for an LEI number to take full advantage of this unique identifier.

The comment period ends on October 21. Take this opportunity to actively contribute to the future of financial transparency and strengthen your company’s position in the global marketplace.