Reference Data Review

September 25, 2012, ReferenceDataReview.com A-Team Group

Delaney: What are your suggestions regarding best practice for data managers at financial institutions charged with implementing the LEI?

Schlatter: As a specialised solution for entity data management, we are obviously having a lot of discussions with our clients around the LEI implementation. While some industry participants view it as ‘just a mapping exercise’, we believe the implications on institutions’ architecture are much deeper. Relying solely on external providers will not be sufficient. Our approach is to create a clear and sustainable plan for better entity data management. We recommend a step-by-step strategy with quick-to-implement outputs:

  1. Reconcile internal data from all the different silos without trying to break those silos – don’t boil the ocean!
  2. Once the entity-linkage phase is completed, analyse data and improve quality – that’s when you can plug in external data providers
  3. Set up work flows to automate and control entity creation and data maintenance
  4. Distribute improved data back to the different silos

These four phases should actually be run on a regular basis to guarantee data accuracy over time. We strongly believe that entity data management and LEI mapping are not one-time tasks, but need to be new recurring processes.