APIR Systems Limited, Australia’s leading provider of financial product and legal entity identifiers, recently surpassed the administration of over 10,000 Legal Entity Identifiers (LEIs) on behalf of their clients.
LEIs were created by the G20 to assist with financial transparency following the global financial crisis. The LEI captures not only key corporate information about a legal entity, but also details any direct and ultimate parent entities. It essentially unveils ‘who is who’ and ‘who owns what’ and so is a crucial identifier that helps regulators better oversee financial markets and monitor financial stability.
“While we have been providing LEI services since 2015, the growth has been exponential over the last 18 months mainly in response to the introduction of new transaction reporting rules by ASIC in October 2024,” Mr Donohoe says.
“The LEI’s adoption in over-the-counter (OTC) derivative transactions better aligns Australia’s regulatory system with regulation frameworks in the EU, US and UK. The move brings Australia in line with other jurisdictions and is another step towards a long-held goal of global regulatory harmonisation.
“APIR has worked closely with many of Australia’s largest financial institutions, including our existing wealth management customers, to deliver bespoke tailored solutions to assist them meet their regulatory obligations in an efficient and cost-effective way. Pleasingly customers have recognised the benefits of using a domestic provider including operating in the same time-zone, higher level of customer service and billing in the same currency.”
Looking ahead, Mr Donohoe points to Global Legal Entity Identifier Foundation’s (GLEIF) stated objective to increase LEI adoption outside of mandated use-cases within financial markets.
“The role of LEIs is expected to expand even further into areas such as cross-border payments, Anti-Money Laundering and Know Your Customer processes, and digital identity verification,” Mr Donohoe says.
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