Legal entity management, identifying every party to a financial transaction, is far easier said than done for financial institutions. It is a complex task that requires digging though complex ownership structures and hierarchies. Complex or not, though, regulators are paying attention and will continue to increase their scrutiny.
The Depository Trust and Clearing Corporation, a post-trade financial services company, is one of the driving forces behind a Legal Entity Identifier solution intended to create and apply a standard identifier to any organization involved in a financial transaction. A recent survey it commissioned found that many firms are still struggling with legal entity data compliance. Global derivatives regulations and the Foreign Account Tax Compliance Act (FATCA) were seen as driving the greatest operational challenges.
In this week’s podcast, we talk to Ron Jordan, DTCC’s chief data officer, about the report, improving data quality, and the steps that can alleviate a growing regulatory burden.
Listen to the Podcast. (12 min., 11 MB)
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