What is the Policy Conformity Flag?

The recently introduced Policy Conformity Flag is considered by the Global Legal Entity Identifier Foundation (GLEIF) to be an essential mechanism to ensure the consistency and reliability of data on Legal Entity Identifiers (LEIs). This flag appears in the publicly available LEI database and aims to increase the quality and trustworthiness of the LEI system by clearly indicating whether an LEI complies with the standards and policies of the Regulatory Oversight Committee (ROC).

The Policy Conformity Flag is binary: an LEI record is either compliant or not. A compliant LEI record means:

• The LEI registration is valid- the registration was renewed on time.
• The identifiability of companies on global markets and data-driven investments are accelerated.
• It facilitates due diligence by providing up-to-date information on the parties involved, especially in international transactions.
• Level 2 reporting is complete - the company has reported information on its direct and ultimate parent companies or provided an acceptable reason for not reporting.
• The ability to identify and monitor risks from inter-company links is improved.
• It provides an easy-to-use measure of corporate transparency.

Usage of the Policy Conformity Flag

Conformity information is accessible in the LEI search details, the GLEIF Golden Copy Files and via the GLEIF API.

GLEIF has published an interactive dashboard for the Policy Conformity Flag that provides stakeholders with insights into the entire LEI ecosystem. This dashboard can be used to identify non-compliant records and statistics on the compliance levels of each LEI issuer.

Conclusion - Achieve Policy Conformity

This indicator is a significant addition to the LEI data set. It increases the confidence and reliability of the LEI reference data represented as it is only activated if the LEI is compliant overall. This allows users of the LEI data to make more informed decisions. It also motivates LEI holders to keep their LEIs active, up-to-date and accurate, which benefits the entire LEI ecosystem.

Eunetic is here to help if your LEI record is not compliant. Contact us and we will be happy to help you. At the start of the initiative, it is easy to determine why a record is not compliant - either your LEI has expired or the Level 2 reporting has not been completed. We can assist you with both!

For more information on compliance marking, please visit the GLEIF website.