Treasury Management Internation Logo

Strate first to launch Legal Entity Identifier (LEI) Services in South Africa

Published 

A committee of global regulators, The Regulatory Oversight Committee (ROC), has endorsed Strate to offer Legal Entity Identifier (LEI) services to entities in South Africa. Strate is a licenced Central Securities Depository (CSD) that provides post-trade products and services to the financial markets.

As of February 2016, companies will be able to make use of Strate as a local provider of LEI services. To date, over 390,000 entities from 195 counties have obtained LEI codes. In South Africa, approximately 150 companies have functioning LEI codes (granted through international providers).

During the financial crisis and collapse of Lehman Brothers in 2008, it became evident that regulators and private sector managers were unable to readily identify the full extent of the market participants’ exposure to Lehman and the interconnectedness of financial institutions. This gave rise to the Regulatory Oversight Committee (ROC), which was founded by the G20’s Financial Stability Board, establishing what is called the Legal Entity Identifier (LEI) system. The system is governed by a committee of 50 global regulators who recognise the importance of the LEI as a key component of the financial markets which aims to reduce systemic risk and increase transparency.

An LEI is a unique numbering system (code) which allows for the identification of legally independent entities across the global financial markets. It has two fundamental characteristics, namely a uniqueness whereby once a code is assigned, it cannot be reassigned to another company (even if the company ceases to exist) and exclusivity whereby once a company has obtained a code, they cannot obtain another one.

In order to be endorsed as an issuer of LEIs, Strate was required to meet a set of stringent qualifying criteria set by the Regulatory Oversight Committee. Strate’s LEI services include the ability to register, view, search, update, renew, challenge and port LEI codes for companies

Importantly, the LEI system assists regulators in monitoring and analysing threats to financial stability. By obtaining an LEI code, companies can expect better risk management and improved transparency. It also helps companies to improve internal management of their operational risks and to create efficiencies in collecting, cleaning, aggregating and reporting data to regulators.

Global regulatory reporting is likely to become stricter in future and companies are encouraged and will benefit by obtaining an LEI code as soon as possible. Any legal entity that enters into a financial transaction is eligible to register for an LEI. However, single individuals (natural persons) are not eligible.

Strate’s CEO Monica Singer: “Strate is honoured to have been endorsed as an issuer of LEIs. With this new offering, we are able to expand our product base to the market by providing the local market with the much needed LEI services.”

Strate worked closely with the Financial Services Board to receive this endorsement from the ROC and is grateful for the support.

Most recent episodes

The Future of ESG in Treasury

In this podcast, Melissa Moi, Peter Jameson and Venkat ES from Bank of America join TMI’s Eleanor Hill to determine where the ESG journey is heading next. Our expert panel consider how changing regulation, technology solutions and metrics including ESG KPIs...

26:50

HSBC’s Sibos Spotlight: Investing in the Future – from Diversity to Green Deposits

In the final instalment of HSBC’s Sibos Spotlight, Eleanor Hill (TMI) invites Nadine Lagarmitte and Suraj Kalati (HSBC) to consider how corporates’ attitudes to...

25:12

HSBC’s Sibos Spotlight: The ESG Landscape – what every treasurer needs to know

In the third edition of HSBC’s Sibos Spotlight Podcast series, TMI’s Eleanor Hill invites Farnam Bidgoli (HSBC) to provide an in-depth overview of the current ESG...

16:24

The Path to Transformational Global Cash Visibility

Davina Bradley (CEVA Logistics) and Conor Deegan (CashAnalytics) join TMI’s Eleanor Hill to explore how treasurers can transform their cash visibility and forecasting within their business in a matter of weeks using a...

33:16

HSBC’s Sibos Spotlight: Embedding ESG in Trade and Supply Chains

In the second podcast from HSBC’s Sibos Spotlight series, TMI’s Eleanor Hill speaks to Surath Sengupta (HSBC) about embedding ESG into trade and supply chains....

20:58

Lost in Transaction: Overcoming Payments Pitfalls

From simple errors to duplicates, fraud and sanctions violations, there are a number of areas where payments can go wrong – especially in the real-time environment. In this podcast, TMI speaks to Andrew Ferrao...

34:25

HSBC's Sibos Spotlight: Central Bank Digital Currencies

The first edition of HSBC’s Sibos Spotlight series sees TMI’s Eleanor Hill joined by Mark Williamson and James Pomeroy (HSBC) to discuss the hot topic of Central Bank Digital Currencies (CBDCs). Our guests discuss...

25:48

Payments Vision 2025: The Inside Track

Wim Grosemans, Steven Lenaerts (BNP Paribas) and Wim Raymaekers (SWIFT) join TMI’s Eleanor Hill to outline their vision for the payments landscape in 2025. Our guests consider how recent developments such as instant...

28:21

Stepping Out from the Shadows

“Treasurers needs to step out of the shadows and into the sunshine in terms of their strategic contribution.” claims Zitah McMillan, Co-Founder and CEO, Predictive Black. In this podcast, hosted by TMI’s Eleanor Hill, our guest declares that the...

16:54

Why the ‘One Size Fits All’ Approach is Outdated - A Cash Segmentation Treasury Masterclass

With the ongoing low interest-rate environment and increasing regulatory change, it’s more important than ever for treasurers...

23:55