The Financial Stability Board (FSB) has launched a consultation on efforts to help curb systemic risks with the introduction of legal entity identifiers (LEIs), the FSB announced Thursday.
Back in 2012, the G20 called for the global adoption of LEIs, which are alpha-numeric codes designed to uniquely identify counterparties to financial transactions.
Policymakers are pursuing the development of LEIs as a way of helping both regulators and market participants guard against systemic risks.
FSB is reviewing the state of progress by both national and international authorities on the implementation of LEIs.
The review aims to assess the strategies being used to introduce LEIs, whether the pace of adoption is adequate, and identify ongoing implementation challenges and possible solutions to these problems.
The FSB aims to publish a report on its findings in the first half of 2019.
In the meantime, it’s also seeking feedback from financial institutions, industry and consumer associations, and others on the implementation of LEIs. Comments are due by Sept. 21.