8 May 2025
📊SEC Proposal on Legal Entity Identifier Requirements for Financial Firms
Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Rules Relating to the Legal Entity Identifier Requirement
Summary
The SEC has issued a notice regarding a proposed rule change by the Fixed Income Clearing Corporation (FICC) to amend requirements related to the Legal Entity Identifier (LEI). The rule aims to streamline data collection and improve operational processes for member institutions by mandating the provision and maintenance of LEIs across relevant participants, enhancing risk management, and ensuring compliance.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The proposed rule change mandates that financial institutions apply for and maintain a Legal Entity Identifier (LEI), impacting compliance for member institutions. Non-compliance could result in fines, thereby increasing operational costs and affecting business practices and customer relationships.