LEI reporting initiative defended, despite high lapse rate

Operators of legal entity identifiers hope Mifid II will spur greater adoption

Many funds-of-funds could cease to exist
Ebb and flow: some legal entities decide not to pay the fee, so their status changes to 'lapsed' – Wolf

The official body responsible for overseeing legal entity identifiers, the Global LEI Foundation (Gleif), is convinced the initiative will make progress, despite data showing a third of LEIs are not being renewed. "The legal entity is obliged to give us any change in their status, but sometimes they don't, so our LOUs [local operating units] check on legal entities every year to make sure the data is still accurate," says Stephan Wolf, chief executive of Gleif. Since the LOUs charge for this