Waters Survey: Key challenges in legal entity identification
With the launch of a new legal entity identifier (LEI) looming, the financial services industry needs to get ready to ensure efficient and timely implementation of the new standard. Both firms and vendors will have to review existing data, processes and systems, and make any necessary changes before the LEI can be successfully rolled out globally.
An exclusive WatersTechnology survey of senior data management decision-makers in international financial institutions reveals that a large number of firms are yet to embark on this process. Although many have assessed what changes need to be made, only a minority have moved on to the next step where they have started making any of the necessary changes to entity data processes and systems, and almost one in three firms have not started working on an LEI project at all.
If the LEI is to become the global game-changer market participants have said they expect, these preparations need to start in the immediate future. By leaving it too late, firms will have to make do with quick-fixes, losing out on the opportunity the introduction of the LEI presents for firms striving to enhance data accuracy to mitigate risk.
Now is the time to promote the LEI internally and make sure senior management understands the potential benefits that can be realized by investing more in improving data management as part of an LEI project.