ACSDA General Assembly Santiago – Chile – April 4, 2014 ANNA & Legal Entity Identifier (LEI)

1. ACSDA General Assembly Santiago – Chile – April 4, 2014 ANNA & Legal Entity Identifier (LEI) Martin Paladino ANNA Marketing Director 1

2. Agenda • ANNA and its membership • ANNA’s role in the international standardization • Legal Entity Identification • The LEI Solution • ANNA and the LEI Project 2

3. ANNA Overview • ISIN Standard was developed in the 1970’s • ANNA formed from group of ISIN Experts • ANNA founded in 1992 by 22 National Numbering Agencies • ANNA <-> ISO: interactive relationship • More than 20 years of constant membership growth • Formation of ASB as single ISIN database for all NNAs • Registration Authority (RA) for ISIN, CFI • Possible additional RA functions for new standards 3

4. ANNA Members • Total full ANNA memberships (per 31 Dec 2013): • 84 National Numbering Agencies; • ANNA Partners (as of 31 Dec 2013): 31 organisations • ISIN coverage in excess of 120 countries Overview of Membership by Business 4

5. ANNA Mission Statement ANNA (the “Association of National Numbering Agencies”)is fully committed to proactively promoting, implementing, maintaining and making available, standards for securities and related financial instruments, in a uniform and accurate structure for the benefit of their home markets and of the securities industry as a whole. 5

6. ANNA – The Standardisation Competence As the Registration Authority for ISO 6166 (ISIN) and ISO 10962 (CFI), ANNA is empowered by ISO to carry out its duties with respect to the two standards. This illustrates the close working cooperation required both directly and indirectly among ISO as our governing body, the SC4 membership (the responsible ISO sub-committee focused on ISO standards related to financial instruments) and ANNA as the entity responsible for the implementation of the standards.

7. LEI Legal Entity Identifier - Background • Long standing issues with risk and exposure management • - unequivocal identification, including company hierarchies, is critical for • risk assessment, systemic analysis, compliance, money laundering • prevention • No unique identifier, similar to the ISIN, for legal entities • - use of proprietary identifiers (e.g. BIC codes, Tax numbers) • - identification based on address data only is prone to error • Several previous attempts to create a standardized method for • identifying legal entities • - International Business Entity Identifier - IBEI (ISO 16372 – 2004) • * scope too broad • - Issuer & Guarantor Identifier – IGI (ISO 16372 – 2010) • * on hold pending GLEIS

8. Challenges • Regulators working in isolation • regulators unable to cross-reference and carrying out analysis on a global basis • Implementation cost & timeframe • how should the costs be covered? • global adoption of an international standards can take years • Scope and coverage • too many companies worldwide • some companies are deliberately non-transparent • Data quality and governance framework • how can adequate data quality be ensured?

9. Driving the LEI Initiative forward • Office of Financial Research (OFR, a U.S. Treasury Department) issued a policy statement with a deadline on 31 January 2011, on the requirements for a global and universal legal entity identifier for reporting • G20 (Cannes Summit, Nov. 2011) “We support the creation of a global legal entity identifier (LEI) which uniquely identifies parties to financial transactions. We call on the FSB to take the lead in helping coordinate work among the regulatory community to prepare recommendations for the appropriate governance framework, representing the public interest, for such a global LEI by our next Summit.” • Financial Stability Board (FSB) responsibility for coordination of the process to implement a Global LEI System • International Standards Organisation (ISO) development of international standard ISO 17442 Legal Entity Identifier; published in June 2012 and selected as the format for the identifier Global LEI System

10. Driving the LEI Initiative forward • Regulators mandating the use of LEIs for the reporting of counterparties of derivatives transactions to trade repositories: • Commodities and Futures Trade Commission (CFTC) imposed regulation requiring parties engaging in swap trades with companies in the U.S. to provide a legal entity identifier from April 2013 • European Securities Markets Authorities(ESMA) introduction of the European Market Infrastructure Regulation (EMIR) requiring LEI for reporting scheduled for implementation Feb 2014 • The Regulatory Oversight Committee (ROC): • Committee of authorities from around the world • Established after recommendations by the Financial Stability Board (FSB) • Endorsed by the Group of 20 (G20) • Implementation of the official Global LEI System (GLEIS) • Authorization of Pre-LOUs • Establishment of the Central Operating Unit (COU)

11. LEI Scope and Coverage • all financial intermediaries; • banks and finance companies; • all entities that issue equity, debt or other securities for other capital structures; • all entities listed on an exchange; • all entities that trade stock or debt, investment vehicles, including mutual funds, pension funds and alternative investment vehicles constituted as corporate entities or collective investment agreements (including umbrella funds as well as funds under an umbrella structure, hedge funds, private equity funds, etc.); • all entities under the purview of a financial regulator and their affiliates, subsidiaries and holding companies; • counterparties to financial transactions

12. LEI Structure 20 character code - allocated in accordance with ISO 17442:2012 XXXX XX XXXXXXXXXXXX XX 4 char LOU code 2 char reserved 12 char entity identification 2 char checksum

13. LEI Minimum Data Set The following set of reference data attributes are regarded as the minimum set of information that should be available at the launch of the LEI as specified in ISO 17442:2012: The official name of the legal entity; The address of the headquarters of the legal entity; The address of legal formation; The date of the first LEI assignment; The date of last update of the LEI; The date of expiry, if applicable; For entities with a date of expiry, the reason for the expiry should be recorded, and if applicable, the LEI of the entity that acquired the expired entity; The official business registry where the foundation of the legal entity is mandated to be recorded on formation of the entity, where applicable; The reference in the official business registry to the registered entity, where applicable.

14. Pre-LOU Principles • Financial Stability Board & Regulatory Oversight Committee Principles to be observed by Pre-LOUs* (27July 2013) - • Compliant with ISO 17442:2012 • Self-registration • Uniqueness and exclusivity • Portability • Relevant Pre-LEI survivor • Compatible reference data • Historical data • Data quality • Open access to Intellectual Property (IP) • Flexibility • Federation • Standards • * Document - Principles to be observed by Pre-LOUs that wish to integrate into the Interim Global LEI System (GLEIS) dated 27 July 2013

15. Cost Recovery • Financing of the Global LEI System is on the basis of cost recovery • Registering entities provide payment for LEI allocation to LOUs • LOUs contribute funding to the establishment and maintenance of COU • Cost recovery factors • Validation process • Revalidation during the year (for instance due to a corporate action) • Technological infrastructure for registration and publication (hardware, software, operation) • Mail and telephone support • Development of the portal, adapting to the regulatory requirements • Provision for necessary investments and system enhancements

16. Pre-LOU Sponsorship & Endorsement Process • Local regulator must be a full member of the ROC • ROC Observer status is inadequate • Review requirements and obligations • Principles can be met • Consideration to allocation scope and coverage • If Principles can be met, approach local regulator for sponsorship • Demonstration of adherence to Principles may be required • Regulator must contact ROC Secretariat and apply for allocation of a pre-LOU prefix • Local regulator will act as Sponsor • Pre-LOU prefix will be published on ROC website • Pre-LOU commences allocation of pre-LEIs • For pre-LEIs to be globally accepted the pre-LOU must obtain endorsement from the ROC • Demonstration of adherence to Principles • Process takes approximately 30 days www.leiroc.org

17. NNAs with Pre-LOU Status • As of 12/03/2014 22 Pre-LOUs were sponsored and received a prefix by the ROC. 9 of these are NNAs: • WM Datenservice (Germany) • Irish Stock Exchange (Ireland) • Palestine Securities Exchange (Palestine) • Takasbank (Turkey) • National Settlement Depository (Russia) • London Stock Exchange (United Kingdom) • Krajowy Depozyt Papierów Wartościowych S.A. (Poland) • Centralni Depozitar Cennych Papiru (Czech Republic) • Centralny Depozitar Cennych Papierov (Slovakia) • Currently 14 pre-LOUs are operational, of these, 7 are NNAs (highlighted in bold above). - All NNA Pre-LOUs have been endorsed by the ROC: pre-LEIs globally accepted • ANNA has set up a Working Group ((WG5) for those NNAs considering or intending to become a pre-LOU - All NNA Pre-LOUs are part of WG5 to share their expertise

18. Pre-LOU Validation Requirements • Self-registration • Registrant must be authorised to request the LEI on behalf of the entity • Entity eligibility • Ensure entity type and legal form is eligible for LEI allocation • Duplicate avoidance • Check for duplicates in local and other pre-LOU databases • Data record validation • Check business register (legal name, legal form, address) • Entity type specific check steps for investment funds and corporations of public law • Only following successful completion of all validation stages can a pre-LEI be allocated • The same validation process applies for initial registrations & renewals

19. Data Consistency • How do you ensure that the data received from an applicant is compatible with your systems with respect to the particular format used, the data conventions employed or the specific fields required? • Mandatory field requirements in online forms for the registrant data and LEI data record • Ensure data record and minimum data is complete • Dropdown selection lists • Consistent use of data • Minimises input errors • Use of ISO standards where possible • Country fields • Date formats

20. Registrant Validation • How do you ensure that the data has been received by an individual who is authorised to act on behalf of the applicant? • User registration process requiring population of mandatory fields confirming registrant name, company name, address, title, email address and telephone number • Validate function of applicant against business registers • Validate in the Power of Attorney the signed person against a public list of authorized signatures • Cross-reference registrant profile with entity details in pre-LEI request • Completion of registrant authorisation form

21. Data Validation • How do you ensure that the reference data received from the registrant is accurate? • Validation and cross-referencing against official public sources and legal documentation • Business registers • Legal form documentation e.g. prospectus, trust deeds, partnership agreements • Annual reports • Regulator records • Exchanges and trading venues • Regulatory disclosures • Numbering Agency data • Data vendors

22. Questions? 22