Consob Notice of 17 December 2021

Recommendation of the European Systemic Risk Board of 24 September 2020 on the identification of legal entities (CERS/2020/12)

The world economy is based on a strictly connected and extremely complex network of financial transactions carried out by financial and non-financial operators. A clear identification of the subjects as individual and their connections is a fundamental requirement for drawing a reliable map of the global economic and financial framework, monitoring risks and identifying potential contagion chains on the markets.

The European Systemic Risk Board (ESRB) intervened on the issue of the identification of legal entities with the Recommendation of 24 September 2020 (published in the Official Journal of the European Union of 26 November 2020), divided into (sub) recommendations (A, B) which are addressed to different authorities according to the objective to be pursued.

The group A recommendations are addressed to the European Commission and have to do with the introduction of rules that require the use of the LEI identification code for the identification of entities operating on the financial markets.

The group B recommendations are addressed to the competent authorities and have to do with the introduction, pending an intervention by the European Commission on the group A recommendations, of measures at national level regarding the identification of subjects through the LEI code.

CONSOB, as of the range of its competences, will implement the ESRB recommendation B3 by which the authorities are recommended to identify through the LEI code the subjects about which they publish information and therefore will include the LEI code in the information that will be published on supervised entities, where the latter are already in possession of the LEI code.

THE CHAIRMAN
Paolo Savona