The IG is collaborating closely with private sector experts through a Private Sector Preparatory Group (PSPG) of some 300 members from 25 jurisdictions across the globe.

Charter for the Regulatory Oversight Committee (ROC): The IG has prepared a draft Charter for the Regulatory Oversight Committee for review and endorsement by the FSB and G20. The draft was supported by the FSB at its recent meeting in Tokyo for submission to the early November G20 Finance Ministers and Central Bank Governors meeting for final endorsement. Approval of the Charter will initiate the process for the ROC to be formed. ROC membership will be open to public authorities from across the globe that assent to the Charter. Authorities will also be able to apply for Observer status. The objective is to launch the ROC as the permanent governance body for the global LEI system in January 2013.

Location and legal form of the global LEI foundation: Formation of the ROC is a necessary step for the creation of the global LEI foundation which is the legal form for the Central Operating Unit. The location and exact legal form of the global LEI foundation will have a bearing on the overall governance framework for the Global LEI System. The IG and PSPG have analysed potential locations for the foundation and have now initiated a detailed assessment of a narrow set of potential candidates. The results of the assessment will facilitate the drafting of the necessary legal documentation to establish the foundation and will be presented at the first meeting of the ROC.

Board of Directors of the LEI foundation: One of the first tasks for the ROC will be the appointment of the initial Board of Directors. PSPG members are working closely with the IG to develop criteria for fitness, experience, regional and sectoral balance, term of office etcetera that will support the process for nomination and selection of the first Board and deliver a governance framework for the global LEI foundation to help sustain the public good nature of the system. The PSPG presented a number of initial recommendations and options related to these criteria for the Board of Directors on 16 October; the proposals are currently being reviewed by the IG and the final version of the recommendations will be presented at the first meeting of the ROC.

Operational Solutions Demonstration Day: The FSB hosted a Global LEI System Operational Solution Demonstration Day in Basel on 15 October. Thirteen presentations from across the globe were made that contained proposals and solutions covering all or part of the proposed global LEI system as set out in the FSB report. Annex 1 contains a list of the presenters.

Business Processes and Use Cases: PSPG members presented an initial set of deliverables containing business processes and use cases for the operational elements of the global LEI system at the joint PSPG and IG meeting on 16 October. PSPG members have already undertaken detailed work in some areas and will expand on a strong base. The next phase of the operational work is to build on these specification documents, focusing on how the system can best address a number of key issues in relation to areas such as data quality, addressing local languages, as well as how to draw most effectively on local infrastructure to deliver a truly global federated LEI system. The PSPG are requested to prepare clear proposals and recommendations by the end of the year, in order to support a successful and speedy launch of the global LEI system.

Number allocation scheme for the global LEI system: On 12 September, the IG requested an 'engineering study' from PSPG experts to determine which scheme for the management of the issue of identifiers best serves the purposes of the global LEI system. Following receipt of response and discussion with private sector experts at the 16 October PSPG meeting, the IG prepared a recommendation for the technical specification of the LEI code structure which has been endorsed by the FSB Plenary. Annex 2 sets out the FSB decision to adopt a 'structured' approach to the number allocation scheme, whereby LOUs are assigned a unique prefix. The FSB decision is provided now to deliver clarity and certainty to the private sector on the approach to be taken by potential pre-LEI systems that will facilitate the integration of such local precursor solutions into the global LEI system.

Ownership and hierarchy data: Addition of information on ownership and corporate hierarchies is essential to support effective risk aggregation, which is a key objective for the global LEI system. The IG is developing proposals for additional reference data on the direct and ultimate parent(s) of legal entities and on relationship (including ownership) data more generally and will prepare initial recommendations by the end of 2012. The IG is working closely with the PSPG to develop the proposals.

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