GLEIF Simplifying Global Legal Entity Identification in the Digital Age Global Legal Entity Identifier Foundation Annual Report 2019 Table of Contents GLEIF simplifies global legal entity identification in the digital age. 3 Get to Know GLEIF 6 LEIs Worldwide 7 2019 Highlights 9 Chairman’s Statement 11 CEO’s Statement 13 Performance 35 Directors’ Report 44 Governance Statement 49 LEI for Business Value 56 Partnerships 58 Financial Statements 2019 63 Notes to the Financial Statements 2019 90 Independent Auditor’s Report 92 Board of Directors, CEO and LEI ROC Chairs 96 Overview of Professional Advisors 97 General Information Basel�Stadt, Switzerland, domicile of GLEIF 3 Get to Know GLEIF GLEIF Simplifying Global Legal Entity Identification in the Digital Age Established by the Financial Stability Board (FSB) in June 2014, the Global Legal Entity Identifier Foundation (GLEIF) is a not-for-profit organization GLEIF created to support the implementation and use of the Legal Entity Identifier ― Endorsed by the G20 (LEI). GLEIF is headquartered in Basel, Switzerland. ― Governance: oversight by GLEIF services ensure the operational integrity of the Global LEI System. regulators GLEIF also makes available the technical infrastructure to provide, via an open data license, access to the full global LEI repository free of charge to users. ― Not-for-profit with no commercial agenda The organization is overseen by the LEI Regulatory Oversight Committee (LEI ROC), which is made up of representatives of public authorities from ― Global and local expertise across the globe. The responsibility for governance lies with the GLEIF Board ― Leader in entity identification of Directors, which is comprised of 18 independent directors. GLEIF operates the Global LEI System in conjunction with GLEIF believes in the power of the LEI as a LEI issuing organizations, which were established to verify global standard to enable trusted legal entity business information, such as an entity’s ownership structure. identification, responding to the needs of the Only organizations accredited by GLEIF can issue LEIs. digital age. 4 Get to Know GLEIF GLEIF enables smarter, less costly and more reliable decisions about who to do business with. GLEIF does this by supporting the implementation of the LEI and by making available the Global LEI Index. This is the only global online source that provides open, standardized and high-quality legal entity reference data. The Global LEI Index contains historical and current LEI records including related reference data in one authoritative, central repository. The reference data represents the Global LEI Index: information on a legal entity identifiable with an LEI. A free global directory to The Global LEI Index brings efficiency, transparency and trust to legal entity promote transparency identification. Backed by the LEI Regulatory Oversight Committee (LEI ROC), it is the only online source with the potential to capture any entity engaging in financial transactions globally, regardless of who generates these transactions. In partnership with the LEI issuing organizations, GLEIF provides in-depth knowledge of local markets and can be relied on to make the correct information available year after year. Global LEI Index ― Adheres to Open Data Charter Any interested party can access and search the complete LEI data pool ― Free of charge access with no free of charge and without the need to register. registration required The Global LEI Index is of direct benefit to participants of the global business ― Accurate, up-to-date reference and community, including data suppliers and their customers, software providers, ownership data vendors and fintech organizations. It removes efforts associated with the ― High data quality, validated and verified maintenance of entity reference data and empowers market participants to cut costs, simplify and accelerate operations, and gain a deeper insight into the ― Data file downloads, API access global marketplace. ― Maps to other identifiers 5 Get to Know GLEIF Vision Mission One global identity for GLEIF believes that each business GLEIF’s mission is to provide trusted every business worldwide should have only one global services and open, reliable data for identity, which can support participation unique legal entity identification in an increasingly digital economy. LEIs worldwide. It does this by managing a LEI is the linchpin that connects can realize this objective. network of partners, known as the LEI issuing organizations, ensuring the the dots across the universe of GLEIF is on a journey to increase the integrity of the Global LEI System. entity identification. rate of LEI adoption so, in the future, the Global LEI Index will capture an GLEIF promotes broad LEI adoption increasing number of entities engaging in the private sector to generate in financial transactions globally, significant advantages for the wider providing a 360-degree view. business community. Legal Entity Identifier: A Global ID for businesses LEI The LEI is a 20-character, alphanumeric code based on the ISO 17442 standard ― Unique to each organization developed by the International Organization for Standardization (ISO). The LEI uniquely identifies legal entities that engage in financial transactions, thereby helping to create ― Global ISO standard greater transparency in the marketplace. Each LEI contains information about an entity’s ― Broad public good for use in the ownership structure, answering the questions of “who is who” and “who owns whom”. public and private sectors It provides a universally recognized identifier paired with essential entity data, rigorous ― Robust data quality management verification processes and high data quality. The LEI is a reporting requirement for several market regulatory organizations globally. ― Provides transparency in financial transactions 6 LEIs Worldwide Backed by a strong governance system, GLEIF enables Stable growth of the Global LEI System trusted global identification of legal entities in an increasingly digital world, through the Global LEI System. 34 57,816 1,007 27,521 163 28,910 6,311 1,336 31,840 58,483 1,024 2,807 20,116 122,365 141,664 3,161 87 75,780 108 10,526 9,527 3,355 27 214 429 160 106,527 111,813 57 9 8 201,108 6,889 34 2,427 2 3 1,287 3,138 1,479 3,796 7,103 1 5 13,290 2,652 108 1,077 15 5 8,588 15 125 57 22 3,819 3,771 6 146 535 100 6,023 206 2,435 32,558 1,155 21,850 2 159 609 7 8 1 24,521 4 103 352 29 511 9 19 5 965 1,360 25 785 7 4 4 5 395 1 97 21 123 35 62 3 1 25 4,592 7 484 18 571 15 1,071 35 5 8 5 33 88 1,599 2 65 767 12 4 1,271 1 261 32 14 8 4 1 1,925 1 575 25 22 29 7 4 29 108 66 22 8 7 41 131 49 1,956 99 236 17,452 3 594 1,541 4 773 388 3 1,404 At the end of 2019, the LEI data pool had grown by 14% 13 to approximately 1.5 million LEIs worldwide. This translates to the Global LEI Index containing accurate and - up to-date reference and ownership data on approximately This map shows the total number of active Visit the GLEIF website to access 1.5 million companies and organizations in over 250 countries information on the number of LEIs issued LEIs by jurisdiction in the Global LEI System by country https://www.gleif.org/en/lei- on 31 December 2019. and territories worldwide. data/global-lei-index/lei-statistics/ 7 2019 Highlights GLEIGLEIF in numbers +14%growth of LEI data pool 250+ 34 ~1.5 million countries and accredited legal entities with an LEI worldwide territories* LEI issuing with LEI service organizations availability ensure data is >99%LEI data quality verified and score accurate 29GLEIF responses to public 42 consultations 410 +17% staff members data quality growth of from reports issued relationship data 3,110 data challenges 21countries managed 2,109 ~1,500 1,744 14.5 service desk daily file downloads processed inquiries (golden copy and requests millionrevenue managed concatenated file) in data quality *Based on the ISO 3166-2 standard for country codes. 8 2019 Highlights GLEIF's core services NEW NEW Certification of LEI Accreditation LEI Search 2.0 Annual Accreditation Mapping Service Certification Service Enhanced functionality enables Verification Provides users with accurate Ensuring quality and identification of corporate Process of re-verification of cross -referencing of key entity performance standards for ownership structures and the LEI issuing organization's identifiers, free of charge. LEI services. pinpoints other identifiers that compliance with expected internal are mapped to an LEI. controls within its LEI operations. ― BIC-to-LEI mapping ― ISIN-to-LEI mapping Golden Copy File Data Quality Global Registration Data users obtain frequently Management Authority List updated information on LEIs Program Reference to over 700 (business) LEI Business and related reference data in a Monitoring and ensuring registers. Users of the LEI data readyo -t -use format. Statistics high -quality data for users. can identify the authoritative Access to key facts and source associated with a legal figures on the global LEI entity, thus making the LEI data population. more reliable and usable. Free Level 2 Regulatory Use of the NEW Ownership Data: LEI Worldwide “Who Owns Whom” Providing an overview of First Entity Legal Forms LEI Look�up API Users have access to the regulatory activities globally, Code List Provides users with faster, only free global ownership including the use of the LEI. Enhanced to over 2,100 entity customized and automated data source connecting legal forms and 90 jurisdictions: access to the legal entity the corporate dots based richer data provides an improved identifier data pool in real time.