By Providence Emmanuel
The Central Securities Clearing System (CSCS) Plc has been accredited by the Global Legal Entity Identifier Foundation (GLEIF) to perform all Local Operating Unit (LOU) services in Nigeria.
This was contained in a letter dated 26 November2018 addressed to the company. The accreditation followed an inspection visit by a team of GLEIF representatives.
The letter signed by Stephan Wolf, the Chief Executive Officer of GLEIF, read in part “please be advised that CSCS Nigeria is being granted authorization to perform all LOU services as
defined in the Master Agreement and its Appendices.
“As previously stated, please be assured that the entire GLEIF organization is here to assist
and support your efforts and bringing continuous improvement to the entire GLEIS system by
facilitating a dedication to “best of breed” practices and methodologies in service and
operations”.In his reaction, Mr. Haruna Jalo-Waziri, the Managing Director/Chief Executive Officer, CSCS
Plc, said “we are delighted at this accreditation by GLEIF. CSCS is the only entity in Nigeria that
can perform this function. The Legal Entity Identifier (LEI) would enable firms to strengthen the accuracy, integrity, and aggregation of data across entities and subsidiaries and thus improve counterparty risk data and management, as well as supporting enhanced data
modeling and analysis”.
Mr. Jalo-Waziri added that “LEI system will allow precise and accurate regulatory reporting,
as well as support the production of data for recovery and resolution planning. This will inherently lead to operational efficiency that would allow for easy reconciliation of data. I encourage all business entities and organizations to acquire the LEI code or apply to CSCS for renewal if they have already registered”.
Owing to its effectiveness in other jurisdictions, the LEI code is a mandatory global
requirement that enables market operators to perform capital market functions; this will further deepen the Nigerian capital market and provide veritable identification of organizations, therefore compliance with this requirement.
A Legal Entity Identifier is a 20-character identifier that identifies distinct legal entities that engage in financial transactions. It is defined by ISO 17442. Natural persons are not required to have an LEI; they are eligible to have one issued, however, but only if they act in anindependent business capacity.