Global LEI Foundation Implements Fee Plan

At its inaugural board meeting, the Global Legal Entity Identifier Foundation (GLEIF) decided to implement one of the Financial Stability Board’s (FSB) recommendations for the Global Legal Entity Identifier System (GLEIS), by which the 2014 GLEIF funding plan will consist of a $20 annual license fee and $10 member credit fee per LEI.
By Jake Safane(2147484770)
At its inaugural board meeting, the Global Legal Entity Identifier Foundation (GLEIF) decided to implement one of the Financial Stability Board’s (FSB) recommendations for the Global Legal Entity Identifier System (GLEIS), by which the 2014 GLEIF funding plan will consist of a $20 annual license fee and $10 member credit fee per LEI.

The GLEIF board says it has been working closely with the Regulatory Oversight Committee (ROC), a global committee established following the FSB’s LEI recommendations, to put these FSB recommendations into action. In order to begin operations, the GLEIF decided to make the recommendation for “Sustainable Funding” as a high priority. This recommendation details two components to funding the GLEIF: “a local discretionary charge; and a common fee based on the number of registrations in each LOU to pay for the centralized operations in the Central Operating Unit, alongside any costs of implementing and sustaining the governance framework.”

The GLEIF Board has decided to apply these fees to all endorsed pre-LOUs (Local Operating Units) with activity from January 1, 2014, onward. The $20 license fee will act as the “common fee” per each LEI record issued or renewed. The GLEIF notes that LOUs “may ultimately pass this cost on to applicants for LEIs in accordance with the cost recovery principles of the GLEIS.” The $10 member credit fee for endorsed pre-LOUs will be used to assist with the establishment of initial GLEIF operations. Member credits, along with interest, will be returned to these pre-LOUs.

As part of the effort to ensure that fees are low enough to not act as a barrier to obtaining an LEI, the GLEIF can only adjust the license fee following consultation with the ROC.

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