Global Legal Entity Identifier Foundation
Annual Report
2022
Chair’s Statement
3
CEO’s Statement
4
The LEI in 2022
5
Regulation Supporting ‘One Global Identity for Business’: 2022 in Review
7
Strategic Priorities: Pushing New Boundaries in Identity Management
8
Consolidated Financial Statements
10
Notes to the Consolidated Financial Statements
15
Independent Auditor’s Report
34
Overview of Professional Advisors
35
Abbreviations
36
Contact Us
37
Contents
2022 Annual Report
2
Chair’s Statement
Throughout 2022, economic participants globally have
acclimated to living with COVID-19 as an endemic disease and
proceeded to resume business as usual. The ‘reopening’ of
China at the end of the year signified that the international
business community and its supply chains might soon regain a
degree of operational normality.
The supply chain disruption experienced in recent years
emphasized our increasing global reliance on seamless
and efficient cross-border trade activities. For those close
to the Global Legal Entity Identifier Foundation (GLEIF),
this inevitably shone a light on the criticality of having a
universally recognized, standardized, and verified entity
identifier – such as the Legal Entity Identifier (LEI) – that
enables trusted identity management to support efficient
and transparent international supply capabilities.
The value of the LEI in this context is supported by the
globally representative Regulatory Oversight Committee
(ROC), the body which oversees policy decision for the Global
LEI System. The confidence that regulatory oversight bestows
on the integrity of LEI data significantly reduces uncertainty,
and therefore friction, in cross-border business activities.
From another perspective, the LEI’s value is also linked to the
advances made by GLEIF relative to the verifiable LEI (vLEI). In
2022 great progress has been made in accelerating the path
to LEI digitization, and this will facilitate cross-border trade
for all participants within the global economy in the near to
mid-term.
Expanding GLEIF’s
footprint in Asia
In anticipation of the post-pandemic return to ‘normal’
business operations, GLEIF, in conjunction with the ROC,
created a strategic plan in 2022 to support the growth of
LEI deployments in Asia with an expanded physical footprint
in the region.
The regulatory drive for LEI adoption in Europe has been
broad and widely supported, and we anticipate that the
Financial Data Transparency Act, which was passed by US
Congress in December 2022, will provide a huge opportunity
to boost LEI adoption in the US. However, initial LEI uptake
across the Asia-Pacific (APAC) region accelerated more
slowly. Presently, however, a number of regulatory initiatives
combined with the GLEIF/ROC strategic initiative within the
region are contributing to an increasing momentum of LEI
issuance, despite legacy challenges from the pandemic. Some
noteworthy flagship LEI developments in key Asian markets
last year included the following:
•
In Japan, a proof-of-concept initiated by GLEIF
demonstrated that embedding the LEI within eSeals brings
significant international interoperability and enhanced
trust advantages. The initiative, which encourages and
facilitates efficient and secure cross-border transactions
using a digital framework, continues to make progress.
•
Great strides were made in India toward improving the
security and efficiency of cross-border payments when the
Reserve Bank of India moved to require the use of the LEI
in large payment transactions.
•
Likewise, China continued to accelerate adoption of the
LEI through strong governmental and regulatory support.
To complement an established local office in Japan, and to
allow closer future collaboration between GLEIF’s experts and
LEI users, GLEIF’s on-the-ground presence will be boosted in
early 2023 with the opening of offices in Singapore and New
Delhi, India.
Strengthening core operations
Throughout the past year, participants within the Global LEI
System have invested time and energy to improve the Global
LEI System’s reach and its capacity to create LEIs.
LEI issuers around the world have done an outstanding job of
maintaining their operations and providing high-quality LEI
issuance services despite the disruption experienced in recent
years and while also expanding coverage to include trust fund
entities. In addition, the GLEIF team continued to work with a
variety of Business Registrants on a new initiative to enable
bulk registration.
A digital trust framework to
stimulate voluntary LEI adoption
In the past year, GLEIF made significant progress towards
a strategic objective unveiled in 2021: the creation of
a digitally trustworthy version of the LEI (the vLEI) and
an infrastructure to support its adoption. In addition to
publishing the vLEI Ecosystem Governance Framework, which
was based on the Trust over IP Governance Metamodel, the
key foundational elements for successful implementation
were also established. While it is still early days relative to
vLEI infrastructure development, there is an elevated level
of interest and enthusiasm from engaged stakeholders
in this digital global identity framework. This comes as no
surprise. The capacity for the vLEI to verify organizational
identity while promoting trust and transparency in this rapidly
digitizing global economy, is unparalleled. It will be a key
driver for adoption of the LEI more broadly, beyond mandates
and regulation. While we expect the model to take some time
to gain momentum, we anticipate early adoption to gather
pace throughout the year ahead.
2023: A year of opportunity
In many respects, 2022 proved to be a year of transition,
both for the world at large and for the Global LEI System.
Importantly, in the face of ongoing and emerging global
challenges, GLEIF has continued to grow and future-proof the
Global LEI System while driving the total LEI population higher
than ever before. For these achievements I wish to offer
sincere thanks to Steven Joachim, the outgoing Chairman
of GLEIF who helped to lead the organization throughout
2020-2023, for his dedicated service, commitment to GLEIF
and valuable contributions. I also extend heartfelt thanks
to the ROC, the GLEIF Board, all my GLEIF colleagues and to
every GLEIS stakeholder. Your dedication and contributions
bring us ever closer to achieving GLEIF’s vision: one global
identity for each business worldwide, including a digital
identity. I look forward to working alongside you in the year
ahead as we continue to capitalize on the momentum already
achieved and find new opportunities to bring transparency
and trust to an increasingly interconnected digital world.
2022 Annual Report
3
Teresa A Glasser
Chair of the Board of Directors,
Global Legal Entity Identifier
Foundation (GLEIF)
Stephan Wolf
Chief Executive Officer,
Global Legal Entity Identifier
Foundation (GLEIF)
CEO’s Statement
GLEIF’s commitment to deliver a world-class universal entity
identity management ecosystem was rewarded in 2022 with
impressive growth on multiple levels. At the end of the year,
2.19 million active LEIs were reported globally. Annual growth
of nearly 13% had driven global LEI volumes higher than they’ve
ever been before. This significant scale-up was supported by
an increase in enabling stakeholders within the Global LEI
System; throughout the year we warmly welcomed a host of new
participants to our ecosystem, including Validation Agents, LEI
and vLEI issuers, and mapping partners. As a result, the Global LEI
System is currently stronger and more expansive than ever before.
Yet growth last year went far beyond that which can be
measured quantitatively. GLEIF continued to amplify the LEI’s
value, expanding its unique capability in the digital world while
enhancing the quality, scope and transparency of data housed
within the Global LEI Index.
GLEIF’s focus on increasing the relevance and value of the LEI
led to a rise in governments, authorities and other influential
organizations championing it. Notably, support was not
only in favor of regulatory agendas but also of bringing
benefits to private and public sector use cases outside of
those traditionally mandated. The proliferation of new LEI
applications being considered and consulted on around the
world demonstrates the universal applicability of one global
identity behind every business.
Enabling global identity. Protecting
digital trust. Introducing GLEIF’s
new brand identity
A key priority for GLEIF in 2022 was the continued development of
an infrastructure that supports the implementation of a digitally
verifiable version of the LEI – the vLEI. In line with GLEIF’s
vision, ‘one global identity behind every business’, the Global
LEI System provides open and reliable data to enable legal
entities to be identified unambiguously. Yet there is a real need
for a cross-border organizational digital identity management
infrastructure to extend transparency and confidence to all
digital transactions as well as those that happen offline.
It has been natural for GLEIF to evolve the utility of the Global
LEI System to create a digital trust ecosystem for legal entities
everywhere. While GLEIF first unveiled plans for a vLEI technical
infrastructure and issuance process in 2021, these past twelve
months have been hugely progressive in terms of laying
down the governance framework, building an operational
implementation model and broadening the LEI’s relevance in
both the offline and digital worlds.
To embrace and highlight this transformation within the Global
LEI System, GLEIF unveiled a new look in 2022. A modern, clean
brand identity was created, including a new logo, strapline,
and trust marks, ensuring that this milestone evolution of the
Global LEI System was mirrored by an outward transformation.
The intention was to help the GLEIF ecosystem better convey
the LEI’s central purpose: to create lasting and verifiable trust
between legal entities everywhere – whether offline or online.
A focus on data: Quality
and scope enhancements
Elsewhere, updated policies and strategic collaborations
throughout 2022 greatly enhanced the scope, transparency,
and utility of LEI data, leading to improvements in the overall
value of data within the Global LEI index – which will benefit
data users globally.
New ROC policies outlined new LEI data formats which
expanded the scope of data contained in each LEI, creating yet
more transparency in the global marketplace. The three key
changes were:
•
The structured classification of public sector entities
allowing General Government Entities or International
Organizations to be recognized. By the end of 2022,
over 4,800 government entities and 27 international
organizations had been reported.
•
A requirement for the inclusion of Legal Entity Event data,
such as a name change, a change in legal entity form, or
mergers and acquisition. This enables LEI data to deliver
the most accurate and up-to-date information about legal
entities as they evolve. Over time, this will stimulate the
retirement of old LEIs and the creation of new ones.
•
Updates to the way entity relationships which impact
investment funds are recorded, to facilitate the
standardized collection of fund relationship information
at the global level. At the end of 2022, over 88,000 legal
entities reported fund relationships.
Separately, GLEIF and its partner Sociovestix Labs collaborated
to create a new open-source tool that uses machine learning
algorithms to assess and improve data quality. The tool, known as
Legal Entity Name Understanding (LENU), enables automated
assignment of Entity Legal Form (ELF) Codes based on an entity’s
legal name and jurisdiction. LENU is freely available on GitHub.
Building momentum for
mass LEI deployment
GLEIF continued to push boundaries in 2022 by supporting LEI
adoption both within and beyond traditional regulated markets.
The strong regulatory support for the LEI within its historical
playground of capital and money markets has given it
unimpeachable credentials for enabling trust and transparency
within complex identity management ecosystems. This
paved the way for champions such as the Financial Stability
Board (FSB), the European Commission (EC), the Bank for
International Settlements (BIS) and the International Chamber
of Commerce (ICC) to advocate for its use last year within the
context of cross-border payments, open finance, trade finance
and supply chain use cases, respectively.
The LEI has also been making headway in the area of
Environmental, Social and Corporate Governance (ESG).
It’s widely understood that the lack of standardized entity
identification is a real challenge in ESG reporting, data
collection, and data exchanges, making it difficult to find,
compare and consume ESG data globally and resulting in a
lack of transparency and inefficiencies. Influential bodies in
the sustainability space have now concluded that the LEI
offers an established and openly available solution. In 2022,
collaborations between GLEIF and ESG bodies such as OS-
Climate and Carbon Call laid strong foundations for the LEI to
have real impact in ESG reporting 2023 and beyond.
With so many influential supporters recognizing the relevance
and value of the LEI over such a wide application landscape, it
is anticipated that momentum will continue building into 2023
and beyond.
I wish to thank all of my GLEIF colleagues, as well as partners,
and stakeholders who support and enable the organization’s
success. In particular, I’d like to thank Steven Joachim, GLEIF’s
outgoing Chairman who served throughout 2020-2023 and
whose leadership and dedication to the role contributed to
GLEIF’s progress. I look forward to working with his successor
and GLEIF’s Board in the coming year.
2022 Annual Report
4
The LEI in 2022
Active LEIs by region:
Worldwide LEI adoption reached a new
milestone in 2022: 2+ million active LEIs
2.19
million
active LEIs
globally
252,000
total LEIs issued
in 2022
12.9%
annual growth
rate*
250
jurisdictions
with LEI
services
As of 2022, Dec, 31
New collaborations
and partners broadened
the scope of the
Global LEI System:
A new LEI issuer
The first vLEI issuer
Two new identifiers
mapped to the LEI
Market Identifier Code
(MIC)
Global Company ID
Three new Validation Agents
*The annual growth rate is based on new issuance in 2022 compared with total number of active LEIs in 2021.
2022 Annual Report
5
Americas
402,967
Europe
1,466,185
Africa
9,745
Oceania
33,494
Asia
278,961
Top 5 countries by LEI volume:
269,023
US
174,651
Germany
174,065
UK
157,393
Italy
137,558
Spain
Top 5 countries by renewal rate
1
:
91%
Japan
88.5%
Luxembourg
87.3%
Finland
81.6%
Norway
81.2%
Liechtenstein
Top LEI growth jurisdictions in 2022:
5 most competitive markets
2
:
New data available in the Global LEI System
At the end of 2022 there were:
• Over 4,800 government entities
• Over 88,000 legal entities reporting fund relationships
• 27 international organizations
Malta Portugal Bulgaria Norway Marshall
Islands
1
Renewal rates
Renewal means that the reference data,
i.e., the publicly available information on
legal entities identifiable with an LEI, is
re-validated annually by the managing
LEI issuer against a third-party source.
2
Competitive markets
So called ‘competitive markets’ refer to
those with over 1,000 LEIs, based on the
number of LEI issuers providing services
in the jurisdiction. The most competitive
markets are those with the most LEI issuers
per jurisdiction, with similar market share.
The LEI in 2022
Continued growth across
the Global LEI System
Global trends in LEI issuance
2022 Annual Report
6
+42.7%
3,526 total
active LEIs
Iceland
+48.3%
105,346 total
active LEIs
China
+27.8%
6,382 total
active LEIs
+43.2%
109,359 total
active LEIs
+157.1%
2,434 total
active LEIs
Saudi Arabia
India
Turkey
Regulation
Supporting
‘One Global
Identity for
Business’:
2022 in Review
Regulatory authorities across
the world recognize the
value of the LEI as a mandated
component of an identity
management ecosystem. At the end of 2022, LEI use was
either required or recommended across an unprecedented
number of existing or proposed regulatory activities.
Mandates
*
for LEI usage:
234
regulations
Recommendations
for LEI use:
The LEI is being used by regulators
worldwide to verify counterparty
identification related to:
Champions of the LEI:
Jurisdictions
globally mandating
the LEI:
*
The term ‘mandate’ refers to regulations where the LEI
is either the only allowed identifier or one of multiple
accepted identifiers.
policy papers or recommendations published by
international or regional organizations.
22
61
➜ Capital markets
➜ Trade and transactions
➜ Customs
➜ Payments
➜ Crypto-assets
➜ Digital finance
➜ Supervisory reporting
➜ Non-financial reporting
➜ Insurance
➜ Corporate debt lending
➜ Anti-money laundering
➜ Bank of England
➜ Bank for International Settlements
➜ Business at OECD
➜ European Commission
➜ European Systemic Risk Board
➜ Financial Stability Board
➜ Insurance Regulatory and
Development Authority of India
➜ The People’s Bank of China
➜ The Reserve Bank of India
➜ U.S. Securities and Exchange Commission
➜ World Economic Forum
➜ World Trade Organization
Public consultations
GLEIF actively participates in relevant
public consultations published by
regulators and organizations to
highlight the added value of the LEI.
GLEIF prioritizes this activity to raise
awareness of the LEI and further
drive its global use. In 2022, GLEIF
responded to 53 consultations
across 7 jurisdictions.
Proposed future LEI use includes the following:
US
Financial Data
Transparency
Act
US Customs
and Border
Protection
Global Business
Identifier
Open
Finance
Alternative
Investment
Funds
2022 Annual Report
7
GLEIF’s strategic focus in 2022 was guided by
the organization’s vision: for the LEI to enable
one global identity behind every business.
Efforts continued to broaden the relevance
and utility of the LEI and to bring new value to
existing and additional public and private sector
stakeholders. This led to a tangible acceleration
in interest, advocacy, and use of the LEI across
new markets and applications, reflecting the
success of GLEIF’s commitment to bring
LEI-associated benefits to all.
Opening doors for
LEI use in new fields
GLEIF celebrated a surge of interest in the LEI across
a wide range of new public and private sector use
cases and applications in 2022. Growing acceptance was
stimulated throughout the year by strong advocacy
from some high-profile LEI champions.
Cross-border payments
• In 2022, the FSB published
a report encouraging
global standards-setting
bodies and international
organizations with
authority in the financial, banking, and payments space
to drive forward LEI references in their work. A primary
near-term goal of the FSB’s report, published as part of
the G20 Roadmap for Enhancing Cross-Border Payments,
is to accelerate LEI use initially in cross-border payment
transactions. By helping to make these transactions
faster, cheaper, more transparent, and more inclusive,
while maintaining their safety and security, the LEI has
been deemed by the FSB to support the goals of the G20
roadmap.
Trade finance and supply chain
• The EC’s Expert Group on the
European Financial Data Space
issued a Report on Open Finance,
which stated that the LEI has an
important role to play in open finance
by promoting standardized data
identification and aggregation, improving data quality and
transparency, and reducing costs related to verification
checks. The Expert Group recognized the value that the
LEI brings to enabling meaningful data sharing through
standardization and harmonization and the role the
LEI plays in facilitating identification of financial service
providers and other legal entity parties in a seamless
way through the publicly accessible Global LEI Index.
The Expert Group also highlighted the LEI’s utility for
streamlining the acquisition of trade financing process
for all businesses, and for small and mid-size enterprises in
particular.
• Reinforcing the support of the EC, the
BIS published a paper recognizing the
need for corporate digital identity
based on a unique legal entity identifier
to promote operational efficiency,
market integrity, and financial stability and inclusion. The
BIS proposed that the LEI is a ‘sounder starting point’ for
corporate ID than business registration identifiers, as it is
global, unique, and widely recognized.
• In a whitepaper entitled ‘Shutting
Fraudsters Out of Trade’, the ICC
called for the use of the LEI, alongside
digital ledgers, invoice number
tracking, and Application Programming
Interfaces (APIs) between revenue departments, banks,
and regulators, to enable banks to share fraud data
and help shut fraudsters out of the system. The ICC also
recommended that organizations become Validation
Agents in the Global LEI System to ensure that their
clients engaged in cross-border payments obtain an
LEI to help to prevent fraud related to misidentification
in financial transactions.
• In early 2022, GLEIF partnered with Surecomp to embed
the Global LEI Index into RIVO, its cloud-based trade
finance solution. Incorporating LEI data enables Surecomp
customers to verify the identity of trade participants
quickly, facilitating greater trust and transparency within
trade transactions and standardizing entity identification
for better Know Your Customer (KYC), fraud, and Anti-
Money Laundering (AML) compliance.
What is the Global LEI System?
The Global LEI System is the infrastructure that
enables LEIs to be issued to legal entities globally.
The Global LEI System operates in three-tiers:
•
The ROC is a group of more than 65 financial
market regulators and other public authorities
and 19 observers from more than 50 countries. It
promotes the broad public interest by improving
the quality of data used in financial data reporting,
improving the ability to monitor financial risk,
and lowering regulatory reporting costs through
the harmonization of these standards across
jurisdictions. It oversees GLEIF to ensure it upholds
the principles of the Global LEI System.
•
GLEIF supports the implementation and use of the
LEI. It makes available the Global LEI Index which
is the only global online source that provides open,
standardized and high quality legal entity reference
data. It also provides services that ensure the
operational integrity of the Global LEI System, such
as the accreditation of LEI issuing organizations.
•
LEI issuing organizations are accredited by GLEIF to
supply registration, renewal, and other services, and
act as the primary interface for legal entities wishing
to obtain an LEI.
2022 Annual Report
8
Strategic Priorities:
Pushing New Boundaries
in Identity Management
ESG reporting
GLEIF strongly advocates the availability and usage of the
LEI to support transparency in global sustainability initiatives.
In line with the global business community’s growing
commitment to ESG goals, GLEIF promotes the role that the
LEI can play in standardizing entity identification for ESG data
comparison. By tagging entities with the LEI and using it as an
ESG data connector, transparency can be increased for the
reporting entity, related companies, and even for suppliers.
Inclusion of the LEI in ESG tagging will ultimately facilitate
enhanced comparability of ESG data during due diligence
and KYC processes.
• In 2022, OS-Climate, hosted by
the Linux Foundation, welcomed
GLEIF’s participation in a
collaborative effort to drive trust
and transparency with its Open-Source Climate Data and
Analytics Solutions. As an active contributor to this open-
source community, GLEIF will help realize OS-Climate’s
goal of building a data and software platform that boosts
global capital flows into climate change mitigation and
resilience.
• The value of the LEI in supporting the
G20’s sustainability agenda was also
recognized in a report published by
leading global business community
influencers – the Business Twenty
(B20), Business in the Organization
for Economic Co-operation and
Development (OECD), and the
International Organisation of
Employers (IoE). The LEI is recognized for its
capacity to reduce costs and fragmented
approaches across borders for the business
community and help set the stage for better
risk management information in the future.
• GLEIF was also confirmed as
co-lead of the ‘discoverable
data’ subgroup for The
Carbon Call. The Carbon Call
builds on, promotes, and
helps accelerate ongoing work to improve measurement,
reporting, and verification of greenhouse gas (GHG)
emissions and removal, primarily for the corporate
sector. The LEI and the vLEI can play a crucial role in
sustainability reporting frameworks and, as the co-lead of
the ‘discoverable data’ subgroup, GLEIF can help promote
transparency in sustainability reporting to support The
Carbon Call roadmap released at COP27.
The vLEI: A bedrock for
cross-border digital trust
A cornerstone of GLEIF’s strategic focus in 2022 was the
continued expansion of the Global LEI System to create
a wholly unique, cross-border digital trust ecosystem that
can verify the identity of a legal organization or a person
acting on its behalf. The organization set a rapid pace in
its continued development of the vLEI infrastructure – the
implementation backbone that will enable digitally verifiable
versions of the LEI to bring trust and transparency to any
and all digital organizational identity management systems
in the future.
Notable advances were made on this front in 2022 with
significant milestones realized.
• GLEIF published its vLEI Ecosystem Governance
Framework, which defined the vLEI operational model and
described how vLEI issuing organizations would be qualified
and perform their roles. The Framework was created in
full accordance with standards and recommendations
of the Trust Over IP Foundation (ToIP), hosted by the
Linux Foundation, and it was the most comprehensive
framework ever developed using the ToIP Governance
Metamodel. The publication of the Framework represented
a foundational step for the vLEI initiative.
• A new International Organization for Standardization (ISO)
standard was published, supporting the uniform inclusion
of ‘official organizational roles’ in LEI-based digital identity
tools. The significance of ISO 5009 was its capacity to pave
the way for vLEI credentials and digital certificates with
embedded LEIs to become a universally trusted method of
digitally confirming the authenticity of people authorized
to act on behalf of an organization. The combination of
LEIs and official organizational roles within digital identity
credentials promotes greater trust in the authenticity of
an entity’s authorized representatives, enabling new digital
identity management use cases.
• GLEIF launched the verifiable LEI Issuer Qualification
Program, enabling organizations to become qualified by
GLEIF to act as the primary interface for legal entities
seeking vLEI credentials.
• GLEIF qualified the first vLEI issuer. Provenant’s
qualification was accompanied with an announcement
that the organization was trialling a suite of
organizational identity services designed to leverage the
vLEI. The suite of services, comprising credential and key
management, digital signing, and verification, was being
offered for proof-of-concept trials to organizations in the
business telecoms ecosystem.
The significant progress and irreversible momentum already
achieved indicate an exciting outlook for 2023 and beyond.
As an increasing number of vLEI issuers become qualified,
more industry-specific use cases and services that utilize the
vLEI will emerge.
2022 Annual Report
9
2022 Annual Report
10
Global Legal Entity Identifier Foundation (GLEIF)
Basel, Switzerland
Consolidated
Financial Statements 2022
for the Period from January 1 to December 31, 2022
Notes Jan. to Dec. 2022 Jan. to Dec. 2021
US$ US$
Fee revenue 3.1 14 , 3 82, 820 13, 201,695
Wages and salaries -7 ,301,04 1 -7 ,059,042
Social contributions and expenses for pensions and care -911, 79 2 -92 5, 65 2
Personnel expenses 3.2 -8 , 212 ,8 33 -7, 9 8 4 , 6 9 4
Other operating expenses 3.3 -4 , 0 8 8 ,9 17 -4,773, 507
Other operating income 3.4 103,333 1 62 ,76 4
Amortization and depreciation expense 4.5/4.6/4.7 -1,59 2,50 1 -1,683,7 04
Operating surplus / (loss) 59 1,9 02 -1 , 0 7 7, 4 4 6
Subsidies and donations 3.5 5 ,031 111,690
Financial income / expense 3.6 -3 5 9, 4 8 0 -2 3 9, 6 3 1
Net surplus / (loss) 237 ,453 -1 , 2 05 , 38 7
Changes of components of net equity from actuarial gains and losses in pension
and similar obligations
3.2 -4,7 39 13 ,9 9 6
Items that will not be reclassified to net surplus -4,7 39 13 ,9 9 6
Other comprehensive income -4 ,739 13 ,9 96
Total comprehensive income 232 ,7 14 -1,191,391
Statement of Comprehensive Income
for the Period from January 1 to December 31, 2022
2022 Annual Report
11
Assets Notes Dec. 31, 2022 Dec. 31, 2021
US$ US$
Receivables from LEI issuers 4.1 2, 37 3 , 249 1,846,734
Current financial assets 4.2 11,8 86 1,840
Other assets 4.3 33 0,60 6 37 4,8 27
Cash and cash equivalents 4.4 11, 275,6 46 12 ,1 93 ,7 8 9
Current assets 13,991,3 87 1 4 , 4 1 7, 1 9 0
Intangible fixed assets 4.5 1,689 ,213 1, 46 8, 286
Tangible assets 4.6 205 ,2 99 16 0,0 67
Long-term financial assets 4.2 136 ,52 5 14 4 ,97 3
Right-of-use assets 4.7 3 , 4 7 7, 2 0 4 4,43 6, 334
Non-current assets 5 , 50 8 , 241 6,209 ,660
Balance Sheet
as at December 31, 2022
Liabilities and equity Notes Dec. 31, 2022 Dec. 31, 2021
US$ US$
Payables due to vendors 4.8 80 2,608 913 ,2 90
Liabilities due to Board
Directors
6.1 15,518 96
Current financial liabilities 4.9 1 ,12 4 ,12 8 1,2 23, 308
Other payables 4.10 1,7 10,032 1,804,330
Deferred subsidies 3.5 1, 217 5 ,031
Current liabilities 3,653,503 3, 946, 055
Provision for pension costs 3.2 45,01 0 33 , 61 1
Long-term financial liabilities 4.9 2 , 4 8 9, 5 9 2 3 , 5 6 7, 1 5 8
Deferred subsidies 3.5 0 1, 217
Non-current liabilities 2 , 53 4 , 602 3 ,6 01 ,98 6
Paid-in Foundation capital 55 ,92 7 55 ,92 7
Other reserves 23 ,689 28, 428
Retained surplus 13 , 2 31 ,9 07 12 ,9 9 4 , 45 4
Organizational capital 4.11 13, 311,523 13,07 8,809
2022 Annual Report
12
Cash Flow Statement
for the Period from January 1 to December 31, 2022
Notes Jan. to Dec. 2022 Jan. to Dec. 2021
US$ US$
Net surplus / (loss) 2 3 7, 4 5 3 -1 , 20 5 , 3 8 7
Amortization and depreciation expense 1,5 9 2,50 1 1,683, 704
Increase (decrease) of provisions 3 , 415 5 ,9 60
(Gains) / losses from the disposal of fixed assets -6 ,42 0 7 2 , 2 74
Financial income / expense 126 , 29 0 112 , 622
Other non-cash expenses and income 233 ,54 7 1 2 7,1 7 3
Decrease / increase of receivables and other current assets -528,015 -1 1 8 ,0 3 7
Increase / decrease of liabilities to vendors and other operating (non-financial) liabilities -203,8 73 18 4 ,03 7
Interest received 4 ,94 2 51,737
Cash flow from operating activities 1 , 4 5 9, 8 4 0 914,083
Receipts from the disposal of intangible and tangible fixed assets and right-of-use assets 20, 239 4, 311
Acquisition of intangible and tangible fixed assets and right-of-use assets 4.5/4.6/4.7 -7 5 6 , 6 13 -999 ,40 7
Acquisition / settlement of financial assets 4.2 -1 ,94 2 4 , 3 61
Cash flow from investing activities -7 38 , 31 6 -99 0,735
Repayment of lease liabilities -1,007,066 -98 1 ,9 40
Proceeds from other (non-lease) financial liabilities -1 , 8 16 -1 8 ,74 6
Interest paid -1 31 ,1 8 5 -16 4 , 261
Cash flow from financing activities -1 ,1 4 0 ,0 6 7 -1 ,1 6 4 , 94 7
Total cash flow effects on cash and cash equivalents -418,543 -1,24 1,59 9
Effect of changes in exchange rates on cash and cash equivalents -49 9, 6 0 0 -6 5 3 ,1 9 2
Cash and cash equivalents at beginning of period 12 ,1 93 ,7 8 9 14,0 88,580
Cash and cash equivalents at end of period 4.4 11,275 ,64 6 1 2 ,1 93 ,7 8 9
2022 Annual Report
13
Statement of Changes in Organizational Capital
Paid-in foundation
capital
Other reserves,
actuarial gains
and losses from
pension obligations
Retained surplus Organizational
capital
US$ US$ US$ US$
Balance as of December 31, 2020 55 ,92 7 14 ,4 32 14 ,1 9 9, 8 4 1 14,2 7 0 ,2 00
Net surplus / (loss) 0 0 -1 , 2 05 , 3 8 7 -1 , 2 0 5 , 3 8 7
Other comprehensive income 0 13 ,9 9 6 0 1 3 ,9 96
Total comprehensive income 0 13 ,9 9 6 -1 , 20 5 , 3 87 -1,191,391
Balance as of December 31, 2021 55 ,92 7 28,428 1 2 ,994 , 4 54 13,07 8,809
Net surplus / (loss) 0 0 2 3 7, 4 5 3 2 3 7, 4 5 3
Other comprehensive income 0 -4 ,739 0 -4,7 39
Total comprehensive income 0 -4 ,739 2 3 7, 4 5 3 232 ,7 14
Balance as of December 31, 2022 55 ,92 7 23, 689 13,231,907 13, 311,523
2022 Annual Report
14
2022 Annual Report
15
Notes to the Consolidated Financial Statements
1. Information on GLEIF
The accompanying consolidated financial statements present the operations of Global Legal
in Basel, Switzerland and its subsidiary (together referred to as the “GLEIF Group”).
GLEIF is a foundation according to Swiss civil law and registered under no. CHE-200.595.965 in
the commercial register of Basel-Stadt, Switzerland . The address of the Foundation is St. Alban-
establishment in Frankfurt am Main, Germany, where the main operating activities of the
Foundation are located.
The establishment of this system has been required by the Heads of State and Government of
the Group of Twenty, calling the Financial Stability Board to coordinate the work among the
regulatory bodies. Prior to the foundation of GLEIF, the Financial Stability Board established
the Regulatory Oversight Committee (“LEI ROC”), which had set forth requirements for the
structure of the Global LEI System and for the managing, monitoring, and standard-setting
functions, as well as the internal structure and the funding of GLEIF. The LEI ROC has, as
stipulated in Article 4 of the GLEIF Statutes, the regulatory oversight of the Global LEI System,
including the activities of GLEIF in the broad public interest.
GLEIF is under supervision of the Swiss Supervisory Board of Foundations since the
establishment of GLEIF in June 2014.
The consolidated financial statements were authorized for publication by the Board of
Directors on 26 July, 2023.
2. Basis of Presentation and Summary
of Significant Accounting Policies
2.1 General
These consolidated financial statements have been prepared in accordance with International
Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board
(IASB). GLEIF also prepares a set of statutory financial statements in accordance with the Swiss
Code of Obligations.
These consolidated financial statements are presented in U.S. dollars (US$), with rounding to
the nearest dollar, unless otherwise stated.
The consolidated financial statements are prepared on the historical cost basis, unless
otherwise stated in the accounting policies.
The accounting policies set out below are unchanged from the prior period and have been
applied consistently throughout both periods.
2.2 Basis of consolidation
The consolidated financial statements comprise the financial statements of GLEIF and its
subsidiary as at 31 December 2022. Control is achieved when the GLEIF Group is exposed, or has
rights, to variable returns from its involvement with the investee and has the ability to affect
those returns through its power over the investee. Specifically, the GLEIF Group controls an
investee if, and only if, the GLEIF Group has:
•
Power over the investee (i.e., existing rights that give it the current ability to direct the
relevant activities of the investee);
•
Exposure, or rights, to variable returns from its involvement with the investee;
•
The ability to use its power over the investee to affect its returns.
Generally, there is a presumption that a majority of voting rights results in control. To support
this presumption and when the GLEIF Group has less than a majority of the voting or similar
rights of an investee, the GLEIF Group considers all relevant facts and circumstances in
assessing whether it has power over an investee, including:
2022 Annual Report
16
•
The contractual arrangement(s) with the other vote holders of the investee;
•
Rights arising from other contractual arrangements;
•
The Group’s voting rights and potential voting rights.
Based on corporate governance and any additional agreements, companies are analyzed for
their activities and variable returns, and the link between the variable returns and the extent to
which their relevant activities could be influenced.
The GLEIF Group re-assesses whether or not it controls an investee if facts and circumstances
indicate that there are changes to one or more of the three elements of control. Consolidation
of a subsidiary begins when the GLEIF Group obtains control over the subsidiary and ceases
when the GLEIF Group loses control of the subsidiary. Assets, liabilities, income and expenses of
a subsidiary acquired or disposed of during the year are included in the consolidated financial
statements from the date the GLEIF Group gains control until the date the GLEIF Group ceases
to control the subsidiary.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their
accounting policies in line with the GLEIF Group’s accounting policies. All intra-group assets and
liabilities, equity, income, expenses and cash flows relating to transactions between members of
the GLEIF Group are eliminated in full on consolidation.
If the GLEIF Group loses control over a subsidiary, it derecognizes the related assets (including
goodwill), liabilities, non-controlling interest and other components of equity, while any
resultant gain or loss is recognized in profit or loss. Any investment retained is recognized at
fair value.
Scope of consolidation
As of December 31, 2022, the GLEIF Group consists of GLEIF and its subsidiary “GLEIF Americas,
a New Jersey nonprofit corporation” (hereinafter: “GLEIF Americas”) with its registered seat
in Jersey City, New Jersey, United States of America. The subsidiary was incorporated on May
1, 2020 and is consolidated since then. Article 3.01 of the bylaws states that at each time the
majority of the board members must be affiliated with GLEIF. The members of initial board of
trustees are officers and employees of GLEIF. Board members are elected or re-elected by the
majority of the existing trustees.
2.3 Foreign currency
The functional currency of GLEIF is the U.S. dollar, as the Foundation generates its revenues
and receives almost all cash flows from the LEI issuers (also referred to as Local Operating Units
(“LOUs”)) in this currency. The functional currency of GLEIF Americas is the U.S. dollar as well.
Transactions that are denominated in a currency other than U.S. dollar are recorded at the spot
exchange rate on the date when the underlying transactions are initially recognized. At the
end of the reporting period, foreign currency-denominated monetary assets and liabilities are
retranslated into U.S. dollars, applying the spot exchange rate prevailing at that date. Gains
and losses arising from these foreign currency revaluations are recognized in financial
income / expense.
The exchange rates of the most significant foreign currencies are:
Dec. 31, 2022 Dec. 31, 2021
US$ US$
Swiss Franc to U.S. dollar 1.0832 1.0963
Euro to U.S. dollar 1.0666 1.1326
2.4 Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable net of
discounts and rebates and excluding taxes or duty. Revenue is recognized over the term of the
license period on an accrual basis.
The revenue of GLEIF is based on arrangements with the LEI issuers to pay to GLEIF a fixed
service fee for each LEI issued and served by the respective issuer.
The license period of an LEI is one year from the date of issuance or renewal. During this period,
the LEI issuers are responsible for managing and maintaining the integrity and accuracy of
the LEI entry data and of the associated changes. The services provided by GLEIF to the LEI
issuers relate to quality assurance, standardization, and certain other work with regard to the
LEI issuers’ management of LEIs. Accordingly, the revenue of GLEIF is related to the service
periods of the LEIs. On a straight-line basis, GLEIF recognizes the revenue over the terms of the
contracts between the LEI issuers and the LEI users, and defers the revenue that is allocated to
the portion of the LEI service periods remaining after the balance sheet date. The outstanding
portion of the LEI service periods is estimated based on quarterly performance reports of each
LEI issuer.
Under the “master agreement” arrangement, the LEI issuer pays a quarterly service fee based
on all active LEIs under its management at the end of the quarter. For service fees under this
agreement, GLEIF only reflects in the balance sheet and as revenue 50 % of the quarterly
service fee for new / renewed LEIs during the quarter. The remaining 50 % that has neither
been earned nor billed at the end of the quarter is not shown in the balance sheet and only
recognized in the subsequent quarter.
2022 Annual Report
17
2.5 Government grants
A government grant or assistance is recognized only when there is reasonable assurance that
the relevant group entity will comply with any conditions attached to the grant and the grant
will be received. The grant is recognized as income over the period necessary to match with
the related costs, for which they are intended to compensate, on a systematic basis. A grant
receivable as compensation for costs already incurred or for immediate financial support, with
no future related costs, is recognized as income in the period in which it is receivable. A grant
relating to assets (capitalized expenditure) is recognized as deferred income (liability), and
released in accordance with the amortization of the related assets.
2.6 Interest
Interest income and expense are recognized using the effective interest method. The effective
interest rate is established on initial recognition of the financial asset or liability and is not
revised subsequently.
2.7 Income taxes
Since 2015, the Foundation’s activities are located in Basel, Switzerland and in Frankfurt am
Main, Germany. GLEIF is free from Swiss income taxes based on an assessment of the tax
authority Basel-Stadt, Switzerland. In Germany, the activities of GLEIF to manage and monitor
the Global LEI System are free from corporate and trade tax on income by law.
GLEIF Americas is exempt from federal income tax under Internal Revenue Code (IRC)
Section (c)(3).
2.8 Provisions
A provision is recognized in the balance sheet when a group entity has a present legal or
constructive obligation as a result of a past event, it is probable that an outflow of economic
benefits will be required to settle the obligation, and a reliable estimate can be made of the
amount of the obligation. If the effect is material, provisions are recognized at present value by
discounting the expected future cash flows at a rate that reflects current market assessments
of the time value of money. When a contract becomes onerous, the present obligation under
the contract is recognized as a provision and measured at the lower of the expected cost of
fulfilling the contract and the expected cost of terminating the contract as far as they exceed
the expected economic benefits of the contract. Additions to provisions and reversals are
generally recognized in the income statements.
Provisions for pension obligations are recognized by using the projected unit credit method
based on reasonable assumptions for the long-term expected rate of salary increases and
benefit increases, demographic assumptions, and long-term interest rates as of the balance
sheet date. The related plan assets are recognized at their fair value in accordance with IAS 19.
2.9 Lease commitments
At inception of a contract, the GLEIF Group assesses whether a contract is, or contains, a lease.
A contract is, or contains, a lease if the contract conveys the right to control the use of an
identified asset for a period of time in exchange for consideration.
At commencement or on modification of a contract that contains a lease component, the GLEIF
Group allocates the consideration in the contract to each lease component on the basis of its
relative stand-alone prices. However, for the leases of IT equipment for the GLEIF data centers
the GLEIF Group has elected not to separate non-lease components and account for the lease
and non-lease components as a single lease component.
The GLEIF Group recognizes a right-of-use asset and a lease liability at the lease
commencement date. The right-of-use asset is initially measured at cost, which comprises the
initial amount of the lease liability adjusted for any lease payments made at or before the
commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle
and remove the underlying asset or to restore the underlying asset or the site on which it is
located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the
commencement date to the end of the lease term, unless the lease transfers ownership of the
underlying asset to the GLEIF Group by the end of the lease term or the cost of the right-of-use
asset reflects that the Group will exercise a purchase option. In that case the right-of-use asset
will be depreciated over the useful life of the underlying asset, which is determined on the same
basis as those of property and equipment. In addition, the right-of-use asset is periodically
reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease
liability.
The lease liability is initially measured at the present value of the lease payments that are
not paid at the commencement date, discounted using the interest rate implicit in the lease
or, if that rate cannot be readily determined, the GLEIF Group’s incremental borrowing rate.
Generally, the GLEIF Group uses its incremental borrowing rate as the discount rate.
The lease liability is measured at amortised cost using the effective interest method. It is
remeasured when there is a change in future lease payments arising from a change in an
index or rate, if there is a change in the GLEIF Group’s estimate of the amount expected to
be payable under a residual value guarantee, if the GLEIF Group changes its assessment of
whether it will exercise a purchase, extension or termination option or if there is a revised in-
substance fixed lease payment.
When the lease liability is remeasured in this way, a corresponding adjustment is made to the
carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount
of the right-of-use asset has been reduced to zero.
Short-term leases and low-value leases are recognized as expenses on a straight-line basis.
Lease arrangements with a residual lease term under 12 months on the date of initial
application are treated as short-term leases.
2022 Annual Report
18
2.10 Tangible fixed assets
GLEIF Group tangible fixed asset items are initially measured at cost. Cost includes
expenditures that are directly attributable to the acquisition of each item. Tangible fixed
assets are subsequently measured at cost less accumulated depreciation and any accumulated
impairment losses. Depreciation is charged to allocate the cost of assets less their residual
values over their estimated useful lives, using the straight-line method.
The estimated useful lives of all items of tangible fixed assets are as follows:
Technical and computer equipment 3 to 5 years
Motor vehicles 6 years
Office equipment 6 to 10 years
2.11 Intangible fixed assets
Separately acquired intangible fixed asset items are initially measured at cost. Cost includes
expenditures that are directly attributable to the acquisition of each item. After initial
measurement, intangible fixed assets are measured at cost less accumulated amortization and
any accumulated impairment losses. Amortization is charged on a straight-line basis over the
estimated useful lives of the intangible fixed assets.
The estimated useful lives of intangible fixed assets are as follows:
Software 3 to 5 years
As at the end of the current financial year, GLEIF Group did not have intangible fixed assets with
an indefinite useful life.
2.12 Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and
a financial liability or equity instrument of another entity. Financial assets of the GLEIF
Group mainly include cash and cash equivalents, long- and short-term security deposits, and
receivables from LEI issuers’ fees. Financial liabilities of the GLEIF Group mainly comprise
payables to vendors and to employees and Board Directors. GLEIF Group does not make use of
the option to designate financial assets or financial liabilities at fair value through profit or loss
at inception (Fair Value Option). Based on their nature, financial instruments are classified as
financial assets, and financial liabilities measured at cost or amortized cost, and financial assets
and financial liabilities measured at fair value.
Financial instruments are recognized on the balance sheet when a group entity becomes a
party to the contractual obligations of the instrument. Regular way purchases or sales of
financial assets, i.e., purchases or sales under a contract whose terms require delivery of the
asset within the time frame established generally by regulation or convention in the market
place concerned, are accounted for at the trade date.
Initially, financial instruments are recognized at their fair value. Transaction costs directly
attributable to the acquisition or issue of financial instruments are only included in determining
the carrying amount if the financial instruments are not measured at fair value through profit
or loss. Subsequently, financial assets and liabilities are measured according to the category
– cash and cash equivalents, loans and receivables, financial liabilities measured at amortized
cost – to which they are assigned.
Cash and cash equivalents
The GLEIF Group considers all highly liquid investments that are readily convertible to known
amounts of cash and that are subject to an insignificant risk of change in value and have less
than three months maturity from the date of acquisition to be cash equivalents. Cash and cash
equivalents are measured at cost.
Loans and receivables
Financial assets classified as loans and receivables are measured at amortized cost using the
effective interest method less any impairment losses. Impairment losses on trade and other
receivables are recognized using separate allowance accounts.
Financial liabilities
The GLEIF Group measures financial liabilities at amortized cost using the effective interest
method.
2022 Annual Report
19
2.13 Accounting pronouncements applied in the
financial statements
GLEIF Group has applied all IFRS accounting pronouncements that are effective for this
reporting period. The GLEIF Group has not adopted any standards that have already been
issued but that are not yet effective for this reporting period. The amendments had no
material effect.
Amendments to
standards
Description
Mandatory
application
IFRS 3
Amendments to IFRS 3 Business
Combinations: Reference to the
Conceptual Framework
Jan. 1, 2022
IAS 16
Amendments to IAS 16 Property, Plant
and Equipment: Proceeds before
Intended Use
Jan. 1, 2022
IAS 37
Amendments to IAS 37 Provisions,
Contingent Liabilities and Contingent
Assets: Onerous Contracts — Cost of
Fulfilling a Contract
Jan. 1, 2022
Annual Improvements to IFRS Standards
2018–2020 Cycle
Jan. 1, 2022
2.14 Not yet adopted recent accounting pronouncements
The following pronouncements issued by the IASB are not yet effective and have not yet been
adopted by the Foundation:
Pronouncement Description
Mandatory
application
Anticipated
effect
IAS 1
Presentation of Financial
Statements and IFRS
Practice Statement 2:
Disclosure of Accounting
Policies
Jan. 1, 2023
No material
effect
expected
IFRS 17
IFRS 17 Insurance Contracts
and amendments to IFRS 17
Insurance Contracts
Jan. 1, 2023
No material
effect
expected
IAS 8
Accounting Policies,
Changes in Accounting
Estimates and Errors:
Definition of Accounting
Estimates
Jan. 1, 2023
No material
effect
expected
IAS 12
Income Taxes: Deferred
Tax related to Assets and
Liabilities arising from a
Single Transaction
Jan. 1, 2023
No material
effect
expected
IAS 1
Amendments to IAS 1
Presentation of Financial
Statements: Classification
of Liabilities as Current
or Non-current, including
Deferral of Effective Date,
as well as Noncurrent
Liabilities with Covenants
Jan. 1, 2024
Effects
currently
being
evaluated
IFRS 16
Amendments to IFRS 16
Leases: Lease Liability in
a Sale and Leaseback
Jan. 1, 2024
No material
effect
expected
2022 Annual Report
20
2.15 Critical accounting estimates
The financial statements are prepared in accordance with IFRS as issued by the IASB. The
significant accounting policies, as described above and in this section, are essential to
understanding the GLEIF Group’s results of operations, financial positions, and cash flows.
Some of these accounting policies require critical accounting estimates that involve complex
and subjective judgments and the use of assumptions. Some of these assumptions may be
for matters that are inherently uncertain and susceptible to change. Such critical accounting
estimates may have a material impact on the results of operations, financial positions, and cash
flows.
Revenue recognition on service contracts
The allocation of revenue relating to the Foundation’s service contracts with LEI issuers to
the appropriate accounting periods is based on reasonable estimates of the timing of the
underlying LEI service contracts between the LEI issuers and the LEI users. The Foundation
receives quarterly reports from the LEI issuers detailing the number of LEIs renewed or newly
issued by the LEI issuers. GLEIF has applied estimates, assuming that the issuance and renewal
of each LEI, as well as the related start of a standard one-year service period, are distributed
on a straight-line basis within the reported quarters. Changes in these estimates may lead to an
increase or decrease of revenue.
3. Statement of Comprehensive Income
3.1 Fee revenue
The revenues split in regions (based on the legal seat of the LEI issuers) as follows:
Jan. to Dec. 2022 Jan. to Dec. 2021
US$ US$
Europe 12,090,166 11,138,827
Asia 1,047,770 947,530
North and South America 1,171,621 1,041,074
Other regions 73,263 74,264
Fee revenues 14,382,820 13,201,695
While a significant portion of the overall GLEIF fees are from LEI issuers with a legal seat in
Europe, the underlying cash flows of GLEIF are generated by a very geographically diverse
population of LEI registrants. Within Europe, 44.1% of the revenue is concentrated on three
LEI issuers.
3.2 Personnel expenses
Jan. to Dec. 2022 Jan. to Dec. 2021
US$ US$
Wages and salaries 7,301,041 7,059,042
Social contributions and
expenses for pension and care
911,792 925,652
Personnel expenses 8,212,833 7,984,694
The personnel expenses consist of the fixed and accrued variable remuneration as well as
the bonus accrual for employees employed by the GLEIF Group. Social, pension, and care
contributions are also included as part of these expenses.
As of year-end 2022, GLEIF Group employed 59 (2021: 53) employees. The average headcount for
2022 is 57 (2021: 54) employees.
2022 Annual Report
21
Pension plan
Under Swiss law, GLEIF has to arrange for an affiliation contract with a pension fund for the
Swiss employees to comply with legal requirements. The pension fund has to provide at least
occupational benefits according to law.
In 2015, GLEIF set up a pension plan in Switzerland with AXA Vorsorgestiftung as a collective
foundation. Based on the plan rules and pension law in Switzerland, the plan qualifies as a
defined benefit scheme under IFRS. The insurance plan is contribution-based and contains a
cash balance benefit formula. Under Swiss law, the pension fund guarantees the vested benefit
amount as confirmed annually to members.
The collective foundation of AXA guarantees a 40% coverage of the retirement accounts
covered by an insurance policy. The other assets are pooled for all affiliated companies. The
collective foundation can adjust risk and cost contributions according to the circumstances.
The employer has to cover at least half of all contributions. The collective foundation is able to
withdraw from the contract with the employer. In that case, the company needs to affiliate with
another pension institution.
GLEIF recognized pension cost of US$ 13,379 (2021: US$ 15,971) within personnel expenses and
net interest expenses of US$ 92 (2021: US$ 95), and paid employer and employee contributions
of US$ 9,957 (2021: US$ 10,007) to the scheme.
Actuarial gains of US$ 5,450 (2021: US$ 11,657) from the defined benefit obligation, net of US$
10,189 losses (2021: plus US$ 2,339 gains) from the return on plan assets have been recognized as
other comprehensive income.
The defined benefit obligation amounted to US$ 197,365 on December 31, 2022 (December 31,
2021: US$ 128,227), net of the plan assets of US$ 152,355 (December 31, 2021: US$ 94,616). A net
pension liability of US$ 45,010 (December 31, 2021: US$ 33,611) was recognized in the balance
sheet as of December 31, 2022.
The weighted average duration of the obligation is 13.7 (2021: 17.5) years. The employee and
employer contributions expected for the next fiscal year are US$ 15,713 each.
For the calculation of the defined benefit obligation, a discount rate of 2.30% (2021: 0.25%)
and a long-term salary increase rate of 1.0% (2021: 1.0%) is used. Mortality, risk of disability, and
turnover rates are set in accordance with the statistical database BVG 2020.
A sensitivity analysis was performed for the most important parameters that influence the
pension obligation of the employer. The discount rate and the assumption for salary increases
are modified by a certain percentage. Sensitivity on mortality is calculated by changing the
mortality with a constant factor for all age groups, resulting in a change of the longevity for the
ages by one year longer or shorter as the baseline value. The sensitivity analysis results are as
follows:
Investment of assets is carried out by the governing bodies of AXA Vorsorgestiftung or by
mandated parties. The structure of the plan assets by classes is as follows:
Dec. 31, 2022 Dec. 31, 2021
US$ US$
Cash and cash equivalents 5,622 977
Equity instruments 43,954 22,582
Debt instruments 45,219 9,095
Real estate 38,546 14,418
Other 19,014 10,335
Total plan assets at fair value
(quoted market price)
152,355 57,407
Total plan assets at fair value
(non-quoted market price)
0 33,903
Plan assets 152,355 91,310
Dec. 31, 2022 Dec. 31, 2022
US$ US$
Defined benefit obligation
with a change of
Discounting rate by +0.25 % / -0.25 % 191,042 204,238
Interest rate by +0.25 % / -0.25 % 200,684 194,154
Future salary increases by -0.25 % / +0.25 % 196,402 197,7 74
Life expectancy -1 year / +1 year 196,178 198,539
Pension increase by +0.25 % / -0.25 % 200,027 194,845
2022 Annual Report
22
3.3 Other operating expenses
Jan. to Dec. 2022 Jan. to Dec. 2021
US$ US$
Rental 159,079 168,393
Contractors 324,046 440,137
Travel and entertainment 469,569 37,522
IT consulting and development 195,368 382,373
IT service and maintenance 820,408 763,449
Website translation expenses 140,922 171,376
Telephone and communication,
office expenses
125,717 122,609
Consulting and advice 687,250 905,064
Public relation advice 483,293 955,369
Legal advice 254,236 251,991
Tax advice, accounting and audit 186,176 196,387
Advertising 94,802 103,370
Staff training expenses 35,520 92,052
Insurance premiums 49,250 59,085
Disposal of fixed assets 13,819 76,585
Other 49,462 47,745
Other operating expenses 4,088,917 4,773,507
3.4 Other operating income
Jan. to Dec. 2022 Jan. to Dec. 2021
US$ US$
Release of prior year liabilities 81,659 153,565
Refunds and reimbursements 980 2,537
Income from subsequent
capitalization
0 834
Other 20,694 5,828
Other operating income 103,333 162,764
3.5 Subsidies and donations
Jan. to Dec. 2022 Jan. to Dec. 2021
US$ US$
Subsidy granted in 2015 0 17
Subsidy granted in 2016 5,031 13,943
GIZ grant 0 97,730
Income from subsidies and
donations
5,031 111,690
In 2016 and 2015, GLEIF received assistance from a government authority of the region of
Hesse, Germany (“Hessisches Ministerium für Wirtschaft, Verkehr und Landesentwicklung”).
The assistance was limited to a maximum of EUR 250,000 each year. In order to receive the
assistance, GLEIF was required to incur certain qualifying expenditures. GLEIF complied fully
with the terms of the subsidy and in turn received the full amount of EUR 250,000 (US$ 260,725
in 2016 and US$ 274,400 in 2015).
In 2020, GLEIF received a grant from the Deutsche Gesellschaft für Internationale
Zusammenarbeit (GIZ) GmbH. The grant is limited up to a maximum of EUR 80,000 and
made available for the period from 01.11.2020 to 30.04.2021. GLEIF received the pre-financing
instalment in the amount of EUR 72,000 (US$ 87,595) in 2020. In order to receive the grant,
GLEIF is required to incur certain qualifying expenditures during the aforementioned period. In
2021, the grant period was extended to June 30, 2021 and increased to a maximum amount of
EUR 86,684.57.
2022 Annual Report
23
The portions of the subsidies attributable to capital expenditures (tangible and intangible
fixed assets), advance payments, and deferred expenses have been deferred and are amortized
over the useful life of the associated fixed assets. The portions of the subsidies attributable
to future costs have been deferred and will be recognized in profit or loss in the same period
as the relevant expenses.
GLEIF Group has not benefited from any other form of government assistance.
No unfulfilled conditions or other contingencies attached to government assistance have
been recognized.
3.6 Financial income / expense
Jan. to Dec. 2022 Jan. to Dec. 2021
US$ US$
Interest income 4,942 51,737
Interest expense -131,232 -164,359
Currency translation gains 1,622,209 1,221,100
Currency translation losses -1,855,399 -1,348,109
Financial result -359,480 -239,631
The net currency translation losses result from payment of invoices in foreign currency as well as
the translation of monetary balances as at the end of 2022.
4. Balance Sheets
4.1 Receivables from LEI issuers’ fees
As in the prior year, all receivables from LEI issuers’ fees are due after the balance sheet date.
As of the balance sheet date, there are no indications that the receivables will not be settled
and thus, allowances are not considered material and therefore not recorded.
4.2 Current and non-current financial assets
Dec. 31, 2022 Dec. 31, 2021
US$ US$
Receivables due from vendors 8,157 1,341
Other current financial assets 3,729 499
Current financial assets 11,886 1,840
Dec. 31, 2022 Dec. 31, 2021
US$ US$
Deposit due later than one year
Office premises 136,525 144,973
Non-current financial assets 136,525 144,973
The balance outstanding as of December 31, 2022, relates mainly to a security deposit for the
lease contract that the Foundation entered into in 2015.
The outstanding deposits receivable analysis is as follows:
Dec. 31, 2022 Dec. 31, 2021
US$ US$
Deposits receivable later than five
years
136,525 144,973
Total deposits receivable 136,525 144,973
2022 Annual Report
24
4.3 Other current assets
Dec. 31, 2022 Dec. 31, 2021
US$ US$
VAT refunds
Germany 76,302 114,604
Switzerland 16,804 29,624
Prepaid IT licenses and
maintenance
150,158 110,653
Annual newsletter subscriptions 9,327 28,973
Prepaid insurances 25,087 26,341
Prepaid travel expenses 19,961 1,148
Prepaid public relation advice 2,258 27,782
Prepaid training costs 2,368 152
Other prepaid expenses 12,571 11,935
Receivables due from employees 9,367 9,176
Reimbursements due from social
organizations
6,403 1,406
Other 0 13,033
Other current assets 330,606 374,827
4.4 Cash and cash equivalents
The position consists of current bank accounts, call money and cash on hand.
Dec. 31, 2022 Dec. 31, 2021
US$ US$
UBS Group AG 3,633,200 910,211
Sparkasse Langen-Seligenstadt 7,108,501 10,566,634
TD bank 533,903 716,899
Cash on hand 42 45
Cash and cash equivalents 11,275,646 12,193,789
2022 Annual Report
25
4.5 Intangible fixed assets
The carrying amounts of all intangible fixed assets are as follows:
GLEIS IT
Solutions
Other
intangible
assets
Prepay-
ments
Total
US$ US$ US$ US$
2021
Accumulated cost 1,983,483 276,056 581,775
2,841,314
Accumulated
depreciation
-1,145,408 -227,620 0
-1,373,028
Carrying amount
as of Dec. 31, 2021
838,075 48,436 581,775
1,468,286
Reconciliation
Carrying amount
as of Jan. 1, 2021
777,411 96,872 346,357
1,220,640
Additions 106,525 0 700,267
806,792
Transfer -
Accumulated cost
464,849 0 -464,849
0
Disposal -
Accumulated cost
-201,547 0 0
-201,547
Depreciation -434,729 -48,436 0
-483,165
Disposal -
Accumulated
depreciation
125,566 0 0
125,566
Carrying amount
as of Dec. 31, 2021
838,075 48,436 581,775
1,468,286
GLEIS IT
Solutions
Other
intangible
assets
Prepay-
ments
Total
US$ US$ US$ US$
2022
Accumulated cost 2,995,719 276,056 187,788
3,459,563
Accumulated
depreciation
-1,494,294 -276,056 0
-1,770,350
Carrying amount as
of Dec. 31, 2022
1,501,425 0 187,788
1,689,213
Reconciliation
Carrying amount as
of Jan. 1, 2022
838,075 48,436 581,775
1,468,286
Additions 142,011 0 487, 384
629,395
Transfer -
Accumulated cost
870,225 0 -870,225
0
Disposal -
Accumulated cost
0 0 -11,146
-11,146
Depreciation -348,886 -48,436 0
-397,322
Carrying amount as
of Dec. 31, 2022
1,501,425 0 187,788
1,689,213
The GLEIS IT solutions contain specific developed software for the maintenance and quality
assurance of the GLEIS databases as well as data exchange tools for the communication
between GLEIF Group and the LEI issuers.
The other intangible assets contain standard software licenses and the ERP system.
All intangible fixed assets stem from external developments or purchases.
2022 Annual Report
26
4.6 Tangible fixed assets
The carrying amounts of all tangible fixed assets are as follows:
Technical and
computer
equipment
Office equipment Motor vehicles Prepayments Total
US$ US$ US$ US$ US$
2021
Accumulated cost 543,453 220,645 70,466 10,515
845,079
Accumulated depreciation -445,302 -169,244 -70,466 0
-685,012
Carrying amount as of Dec. 31, 2021 98,151 51,401 0 10,515
160,067
Reconciliation
Carrying amount as of Jan. 1, 2021 90,476 77,764 5,871 0
174,111
Additions 86,995 0 0 10,515
97,510
Disposal - Accumulated cost -51,171 0 0 0
-51,171
Depreciation -78,716 -26,363 -5,871 0
-110,950
Disposal - Accumulated depreciation 50,567 0 0 0
50,567
Carrying amount as of Dec. 31, 2021
98,151 51,401 0 10,515 160,067
2022
Accumulated cost 572,013 223,179 64,558 0
859,750
Accumulated depreciation -459,317 -193,339 -1,795 0
-654,451
Carrying amount as of Dec. 31, 2022 112,696 29,840 62,763 0
205,299
Reconciliation
Carrying amount as of Jan. 1, 2022 98,151 51,401 0 10,515
160,067
Additions 74,630 5,902 64,558 0
145,090
Transfer - Accumulated cost 10,515 0 0 -10,515
0
Disposal - Accumulated cost -56,585 -3,368 -70,466 0
-130,419
Depreciation -68,916 -26,474 -1,795 0
-97,185
Disposal - Accumulated depreciation 54,901 2,379 70,466 0
127,746
Carrying amount as of Dec. 31, 2022 112,696 29,840 62,763 0
205,299
No asset is pledged as security for liabilities of the GLEIF Group. Nevertheless, in accordance with general purchase conditions in Germany, most vendors will withhold the legal ownership of assets
delivered until the purchase price is fully paid.
2022 Annual Report
27
4.7 Leases
Leases are accounted for as described in section 2.9. As a lessee, GLEIF Group has concluded
contracts for real estate and technical and computer equipment.
The carrying amounts of all right-of-use assets are as follows:
Land and
buildings
Technical and
computer
equipment
Total
US$ US$ US$
2021
Accumulated cost 4,016,266 2,262,528
6,278,794
Accumulated depreciation -995,274 -847,186
-1,842,460
Carrying amount as of Dec. 31, 2021 3,020,992 1,415,342
4,436,334
Reconciliation
Carrying amount as of Jan. 1, 2021 3,321,640 1,972,274
5,293,914
Additions 38,156 193,853
232,009
Depreciation -338,804 -750,785
-1,089,589
Carrying amount as of Dec. 31, 2021 3,020,992 1,415,342
4,436,334
2022
Accumulated cost 4,166,237 2,251,421
6,417,658
Accumulated depreciation -1,350,897 -1,589,557
-2,940,454
Carrying amount as of Dec. 31, 2022 2,815,340 661,864
3,477,204
Reconciliation
Carrying amount as of Jan. 1, 2022 3,020,992 1,415,342
4,436,334
Additions 149,971 -11,107
138,864
Depreciation -355,623 -742,371
-1,097,994
Carrying amount as of Dec. 31, 2022 2,815,340 661,864
3,477,204
In October 2019, GLEIF agreed to an adjustment of the rental contract with the lessor of the
Frankfurt office premises. The new minimum lease term runs until December 2025. An option
to extend the lease term until December 2030 was agreed upon. GLEIF considers it as highly
probable that this option will be used by GLEIF.
The outstanding discounted lease payments have the following maturities:
Dec. 31, 2021
US$
Dec. 31, 2021
US$
Land and buildings
Technical and
computer equipment
Maturities of discounted lease payments
Not later than one year 395,439 783,991
Later than one year and not later than
five years
1,491,154 719,895
Later than five years 1,356,109 0
Total lease payments 3,242,702 1,503,886
Dec. 31, 2022
US$
Dec. 31, 2022
US$
Land and buildings
Technical and
computer equipment
Maturities of discounted lease payments
Not later than one year 390,643 702,173
Later than one year and not later than
five years
1,473,044 0
Later than five years 1,016,548 0
Total lease payments 2,880,235 702,173
In addition, the following amounts were recognized in the statement of comprehensive income
in 2021 and 2022:
Jan. to Dec. 2021
US$
Jan. to Dec. 2021
US$
Land and buildings
Technical and
computer equipment
Impact on the Statement of
Comprehensive Income
Interest expense -83,634 -48,548
Expenses for variable lease payments -113,121 0
Total -196,755 -48,548
Jan. to Dec. 2022
US$
Jan. to Dec. 2022
US$
Land and buildings
Technical and
computer equipment
Impact on the Statement of
Comprehensive Income
Interest expense -69,279 -40,092
Expenses for variable lease payments -93,406 0
Total -162,685 -40,092
Cash outflows related to lessee activities in 2022 amounted
to US$ 1,271,589 (2021: US$ 1,325,182).
2022 Annual Report
28
4.8 Payables to vendors
The current payables to vendors, including accrued payables, are due or will become due within three months after the balance sheet date.
Normal payments terms agreed with the vendors range between 7 and 30 days after invoicing.
4.9 Financial liabilities
Dec. 31, 2022 Dec. 31, 2021
US$ US$
Leasing liabilities falling due later than one year and not later than five years 1,473,044 2,211,049
Leasing liabilities falling due later than five years 1,016,548 1,356,109
Long-term financial liabilities 2,489,592 3,567,158
Leasing liability portion falling due within one year after the balance sheet date 1,092,816 1,179,430
Short-term bank liabilities 6,223 7,812
Liabilities due to LEI issuers 25,089 36,066
Current financial liabilities 1,124,128 1,223,308
Total financial liabilities 3,613,720 4,790,466
The short-term bank liabilities reflect the balances on the GLEIF Group’s credit card accounts.
The liabilities due to LEI issuers arise from the annual true up of the volume of LEIs managed by the LEI issuers. If the effective annual fee is lower than the amounts paid in advance, GLEIF issues a
credit for such an overpayment.
Further details of lease liabilities are provided in section 4.7.
The reconciliation of the changes in liabilities arising from financing activities with the related cash flows is shown in the following table:
Jan. to Dec. 2022 Jan. to Dec. 2021
Leasing liabilities
Short-term
bank liabilities
Liabilities from
financing activities
Leasing liabilities
Short-term
bank liabilities
Liabilities from
financing activities
US$ US$ US$ US$ US$ US$
Carrying amount as of Jan. 1 4,746,588 7,812
4,754,400
5,920,081 27,772
5,947,853
Additions 129,723 0
129,723
230,242 0
230,242
Changes from financing cash flows -1,116,437 -1,816
-1,118,253
-1,114,122 -18,747
-1,132,869
Interest accrued 109,371 0
109,371
132,182 0
132,182
Currency revaluation -286,837 227
-286,610
-421,795 -1,213
-423,008
Carrying amount as of Dec. 31 3,582,408 6,223
3,588,631
4,746,588 7,812
4,754,400
2022 Annual Report
29
4.10 Other payables
Dec. 31, 2022 Dec. 31, 2021
US$ US$
Wage and church tax payables 102,716 105,021
Social security liabilities 26,517 43,642
Outstanding vacation 179,407 183,845
VAT payable
Russia 0 593
Variable salary 660,823 614,906
Bonuses 714,888 652,833
Other liabilities due to employees 25,681 203,490
Other payables 1,710,032 1,804,330
The variable remuneration to GLEIF Group employees is accrued for in 2022 in accordance with
the employment contracts. The bonuses to employees are accrued in accordance with board
and management decisions.
The outstanding vacation liability in 2022 reflects the accrued salary and social contribution
payments for the respective time.
4.11 Organizational capital
The Foundation’s initial paid-in foundation capital in an amount of CHF 50,000 was contributed
by the Financial Stability Board, according to Article 7 of the GLEIF Statutes. With the consent
of the GLEIF Board of Directors, the Financial Stability Board is permitted, but not obliged, to
make additional contributions.
According to Article 10 of the GLEIF Statutes, any surplus generated by GLEIF is dedicated to
pursue the purposes of the Foundation. Any distribution payment to Directors, employees, or
third parties, other than those made with the consent of the GLEIF Board of Directors and in
accordance with the Foundation’s purpose, is not permitted.
The Foundation’s capital does not entitle the founder to receive distributions or any repayment
of the capital contributed.
According to the Statutes, GLEIF must operate on a not-for-profit basis. In order to ensure
the sustainable performance of the Foundation, the GLEIF Board of Directors and GLEIF
management believe that a reasonable level of total capital reserve is necessary.
The consolidated total comprehensive income generated in 2022 will be allocated to the GLEIF
Group’s reserves. Together with the retained surplus and other reserves, the consolidated total
organizational capital is US$ 13 , 311 ,5 23 .
2022 Annual Report
30
5. Financial Instruments
5.1 Additional disclosures on financial instruments
The following table presents carrying amounts of each category of financial assets and financial
liabilities:
Dec. 31, 2022 Dec. 31, 2021
Carrying amount Carrying amount
US$ US$
Financial assets measured at cost
or amortized cost
Long-term security deposits 136,525 144,973
Receivables from LEI issuers fees 2,373,249 1,846,734
Cash and cash equivalents 11,275,646 12,193,789
Receivables due to vendors 8,157 1,341
Other non-derivative financial
assets
3,729 499
13,797,306 14,187,336
Financial liabilities measured at
cost or amortized cost
Payables due to vendors 802,608 913,290
Liabilities due to Board Directors 15,518 96
Leasing liabilities 3,582,408 4,746,588
Liabilities due to banks 6,223 7,812
Liabilities due to LEI issuers 25,089 36,066
4,431,846 5,703,852
All financial assets and liabilities are measured at cost or amortized cost.
The carrying amounts of cash and cash equivalents, LEI issuers’ fee and other receivables, and
vendor payables with a remaining term of up to twelve months, other current financial assets
and liabilities represent a reasonable approximation of their fair values, mainly due to the
short-term maturities of these instruments. With regard to the non-current financial liabilities
from leasing contracts, the fair value as of December 31, 2022 is considerably lower than the
carrying amount due to the overall changes in interest rates in 2022.
The realization and valuation of the financial assets and liabilities mentioned above generated
a net foreign currency loss of US$ 238,847 (2021: US$ 219,737).
Total interest income / expense and bank transaction expenses from financial instruments are:
Jan. to Dec. 2022 Jan. to Dec. 2021
US$ US$
Total interest income 2,372 51,189
Total interest expense 131,140 164,219
Total bank transaction expenses 7,83 4 6,406
The bank transaction expenses are presented under the operating expenses.
2022 Annual Report
31
5.2 Financial risk management
The GLEIF Group’s operating business as well as its intended future investment and financing activities are affected by changes in
foreign exchange rates and interest rates. GLEIF Group identifies, analyzes, and manages the associated market risks in order to
optimize the allocation of the financial resources. The GLEIF Group seeks to manage and control these risks primarily through its
regular operating and financing activities.
Foreign currency exchange rate risk
The operating structure of GLEIF Group exposes the GLEIF Group to foreign currency exchange rate risks, particularly regarding
fluctuations between the U.S. dollar and the Swiss franc as well as the Euro, in the ordinary course of business. Based on an annual
budget and monthly interim statements, the GLEIF Group plans the future financial disbursements in each significant transaction
currency to mitigate the risk exposure to unpredicted and unwanted currency exchange expenses.
IFRS 7 requires the presentation of the effects of hypothetical changes of currency relations on surplus and equity using a
sensitivity analysis. The changes of currency prices are related to all financial instruments outstanding at the end of the reporting
period. To determine the net foreign currency risk, the financial instruments are categorized according to their foreign currency,
and a 10% increase or decrease is assumed for the transaction currency.
The following table shows the effect for the two main foreign transaction currencies.
2021 2021
Effect on equity Effect on surplus
US$ US$
10% Increase of transaction currency
Swiss Franc 17,693 17,693
Euro 521,441 521,441
539,134 539,134
10% Decrease of transaction currency
Swiss Franc -17,693 -17,693
Euro -521,441 -521,441
-539,134 -539,134
2022 2022
Effect on equity Effect on surplus
US$ US$
10% Increase of transaction currency
Swiss Franc 23,267 23,267
Euro 369,877 369,877
393,144 393,144
10% Decrease of transaction currency
Swiss Franc -23,267 -23,267
Euro -369,877 -369,877
-393,144 -393,144
Interest rate risk
Interest rate risk is the risk that the fair value or future cash
flows of a financial instrument will fluctuate because of
changes in market interest rates. This risk arises whenever
interest terms of financial assets and liabilities are different.
Due to the increase of interest rates during the fiscal year
2022, and the higher spread between interest rates for
assets and liabilities, GLEIF Group’s interest rate risk
increased from a low to a moderate level. Certain operating
resources, particularly office facilities, are financed through
medium- to long-term interest-bearing leasing contracts,
so any future replacement of such leases would incur
additional interest costs. On the other hand, GLEIF Group
can generate significantly higher interest income from cash
funds in the future.
Liquidity risk
Liquidity risk results from the GLEIF Group’s potential
inability to meet its financial liabilities, in particular for
ongoing cash requirements from operating activities.
The GLEIF Group management is able to mitigate liquidity
risks due to the quarterly instalments and quarterly
invoicing agreed in both kinds of arrangements with the
LEI issuers and the repeating cash structure of the most
operating expenses.
Credit risk
Credit risk from fee receivables and other financial
receivables includes the risk that receivables will be
collected late or not at all. These risks are analyzed and
monitored by the management. The GLEIF Group mitigates
the default risks by assessing the financial strength of an
LEI issuer candidate during the accrediting and monitoring
processes. However, default risk cannot be excluded with
absolute certainty. The maximum default risk amount is
the carrying amount of the financial asset. No collateral or
insurance is agreed with regard to the default risk.
GLEIF Group has two major banking relationships. The
majority of its cash holdings is concentrated within one of
these banks.
2022 Annual Report
32
6. Other Information and Disclosures
6.1 Related party transactions
Related individuals of GLEIF Group include the members of the Foundation’s Board
of Directors, the Chief Executive Officer and the senior management, as well as the
members of the Regulatory Oversight Committee. Related organizations include the
Financial Stability Board.
The following table discloses the current and prior year transactions with related parties
and payables due by December 31, 2022, and December 31, 2021:
Jan. to
Dec. 2022
Dec. 31,
2022
Jan. to
Dec. 2021
Dec. 31,
2021
Expenses Liabilities Expenses Liabilities
US$ US$ US$ US$
Board directors
Travel expense
reimbursement
95,411 15,518 16,667 96
Key management
personnel
Fixed remuneration 1,098,567 0 1,108,890 5,434
Variable remuneration
and bonus
386,677 393,455 409,461 394,949
Travel expense
reimbursement
64,926 2,980 392 0
1,645,581 411,953 1,535,410 400,479
The Directors did not receive remuneration for their services as Directors of the GLEIF
Board, with the exception of the reimbursement of their travel costs.
The 2022 and 2021 travel reimbursement expenses and liabilities for the Board Directors
include claimed expenses as well as accrued expenses for outstanding reimbursement.
The key management personnel of GLEIF consist of the CEO, the CFO, the Head of
Business Operations, the Head of Service Management, and the General Counsel.
The expenses for the pension scheme for Swiss employees in the favor of the senior
management were US$ 13,379 (2021: US$ 15,971)
6.2 Observance of the GLEIF Statutes’ requirements
The purpose of GLEIF is to act as the operational arm of a Global Legal Entity Identifier
System and thereby to support on a not-for-profit basis the implementation of a global
Legal Entity Identifier in the form of a reference code to identify uniquely legally distinct
entities that engage in financial transactions, as per Article 3 of the GLEIF Statutes.
The Board of Directors observed that all expenses and disbursements of GLEIF were
made to pursue the purpose of the Foundation, in accordance with Swiss law and the
GLEIF Statutes.
6.3 Auditor fees
US$ 36,111 audit fees related to professional services rendered by the Foundation’s
independent auditors, Ernst & Young Ltd, Basel, Switzerland, were accrued for fiscal
year 2022.
6.4 Subsequent events
GLEIF is not aware of any significant subsequent event after the balance sheet date
that would require disclosure. Referring to the Corona Crisis and the related restrictions,
the whole organization works from home and the business could run as usual without
any issues.
2022 Annual Report
33
7. Board of Directors, Secretary, and Chief Executive Officer
The Foundation’s Board of Directors consisted of the following individuals during the fiscal year 2022:
Steven A. Joachim (Chair of the Board)
Basking Ridge, United States of America
Sandra Boswell
Sydney, Australia
Hany Choueiri
Hampton, United Kingdom
Changmin Chun
Goyangsi, South Korea
Daniel Cotti
Surses, Switzerland resigned in June 2022
Salil Jha
New Delhi, India
Alfredo Reyes Krafft
Mexico City, Mexico resigned in June 2022
Zaiyue Xu
Shanghai, China
Amy A. Kabia
Chappaqua, United States of America
Humaid Mudhaffr
Riyadh, Saudi Arabia resigned in November 2022
Javier Santamaría
Pozuelo de Alarcón, Spain
Vivienne Artz
Headcorn, United Kingdom
Kaoru Mochizuki
Tokyo, Japan
Jacques Demaël
Aubonne, Switzerland
T. Dessa Glasser
Palm Beach Gardens, United States of America
Hendus Venter
Dubai, United Arab Emirates resigned in November 2022
Nassib Abou Khalil
Dubai, United Arab Emirates
Gabriela Styf Sjoman
Djursholm, Sweden nominated in June 2022
Katia Walsh
Sausalito, United States of America nominated in June 2022
The first Directors were nominated in December 2013 by the Founder, the Financial Stability Board, and appointed at the inception of the Foundation on June 26, 2014, as per Article 14
of the GLEIF Statutes. Article 17 of the GLEIF Statutes stipulates that Directors are eligible for a term of three years, renewable (with consent of the Board of Directors) for an additional
term of three years.
The nomination procedure for new Members of the Board of Directors is coordinated by the Chairman of the Board. Irrespective of this procedure, the Founder has the right to remove
or nominate a Director of the Board based on a recommendation of the LEI ROC, as defined in Article 15 of the GLEIF Statutes.
The Chief Executive Officer is Stephan Wolf, residing in Wiesbaden, Germany. He started in his role in October 2014.
The Board of Directors appointed Thomas Sprecher, Zurich, Switzerland, as Secretary of the Board on June 26, 2014.
Signing authorities have been established as per GLEIF Statute Article 35 “Signatures”.
Basel, 26 July, 2023
Ernst & Young Ltd
Aeschengraben 27
P. O . B ox
CH
-4002 Basle
Phone: +41 58 286 86 86
www.ey.com/en_ch
To the Board of Directors
of
Global Legal Entity Identifier Foundation, Basel
Basle, 25 July 2023
Independent auditor’s report of the consolidated financial statements
Opinion
We have
audited the consolidated financial statements of Global Legal Entity Identifier
Foundation
and its subsidiaries (the Group), which comprise the balance sheet as at
31
December 2022, the cash flow statement, the statement of comprehensive income and
the statement of changes in orga
nizational capital for the year then ended, and notes to the
consolidated
financial statements, including a summary of significant accounting policies.
In
our opinion, the accompanying consolidated financial statements give a true and fair view
of the consolidated financial position of the Group as at
31 December 2022 and of its
consolidated financial performance and its consolidated cash flows for the year then ended
in
accordance with International Financial
Reporting Standards (IFRS).
Basis for opinion
We
conducted our audit in accordance with International Standards on Auditing (ISA). Our
responsibilities under those standards are further described in the “Auditor
’s responsibilities
for the audit of the
consolidated financial statements” section of our report. We are
independent of the
Group in accordance with the requirements of the Swiss audit profession,
as well as those of the International Ethics Standards Boar
d for Accountants’ International
Code of Ethics for Professional Accountants (including International Independence Standards
)
(IESBA Code),
and we have fulfilled our other ethical responsibilities in accordance with
these requirements.
We believe that the
audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
Other information
The Board of Directors
is responsible for the other information. The other information
comprises the information included in the annual report, but does not include the consolidated
financial statements
and our auditor’s reports thereon.
Our opinion on the
consolidated financial statements does not cover the other information
and we do not express any form of assurance conclusion thereon.
In connection with our audit of the
consolidated financial statements, our responsibility is to
read the other informati
on and, in doing so, consider whether the other information is
materially inconsistent with the
consolidated financial statements or our knowledge obtained
in the audit or otherwise appears to be materially misstated.
If, based on the work we have perform
ed, we conclude that there is a material misstatement
of this other information, we are required to report that fact. We have nothing to report in this
regard.
2
Board of Directors’ responsibilities for the consolidated financial statements
The Board of Directors is responsible
for the preparation of the consolidated financial
statements
, which give a true and fair view in accordance with IFRS and for such internal
control as the Board of Directors
determines is necessary to enable the preparation of
consolidated
financial statements that are free from material misstatement, whether due to
fraud or error.
In preparing the
consolidated financial statements, the Board of Directors is responsible for
assessing the G
roup’s ability to continue as a going concern, disclosing, as applicable,
matters related to going concern, and using the going concern basis of accounting unless the
Board of Directors
either intends to liquidate the Group or to cease operations, or has no
realistic alternative but to
do so.
Auditor’s responsibilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the
consolidated financial
statements as a whole are
free from material misstatement, whether due to fraud or error,
and to issue an auditor
’s report that includes our opinion. Reasonable assurance is a high
level of assurance,
but is not a guarantee that an audit conducted in accordance with ISA will
alway
s detect a material misstatement when it exists. Misstatements can arise from fraud or
error and
are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis
of these
consolidated
financial statements.
A
further description of our responsibilities for the audit of the consolidated financial
statements
is located on EXPERTsuisse’s website at: https://www.expertsuisse.ch/en/audit-
report. This description forms an integral part of our report.
Ernst & Young Ltd
Licensed audit expert
Licensed audit expert
(Auditor in charge)
Enclosures
Consolidated financial statements (balance sheet, cash flow statement, statement of
comprehensive income, statement of changes in organizational capital and notes)
Yana Toengi (
Qualified
Signature)
Daniel Rohrer (
Qualified
Signature)
2022 Annual Report
34
Independent
Auditor’s Report
Advisor Country of Origin Type of Service
A&S Financial Advisory Firm Japan Payroll advice and processing
AD&M Abogados Y Consultores SLP Spain Payroll advice and processing
ADM in Swiss SARL Switzerland Payroll advice and processing
ADP Inc. USA Payroll advice and processing
Al Tamimi & Co. Saudi Arabia Legal advice
Arent Fox LLP USA Legal advice
Astrea la Infopista juridica, S.L. Spain Legal advice
AZB & PARTNERS India Legal advice
Bird & Bird LLP Germany Legal advice
Brix + Partners LLC USA Payroll advice and processing
burckhardt AG Switzerland Tax advice
CMS Hasche Sigle Germany Legal advice
CMS von Erlach Partners Ltd. Switzerland Legal advice
Ernst & Young AG Switzerland Audit
Estudio Chaloupka Argentinia Legal advice
Hahn & Hahn Inc South Africa Legal advice
Joanknecht & Van Zelst Netherlands Legal advice
Niederer, Kraft & Frey AG Switzerland Payroll advice and processing
RA Notar StB Bastian Germany Legal advice
Rödl & Partner GmbH Rechts- Germany Legal advice
Rödl & Partner Outsourcing 000 Russia Tax advice
Rohner & Erni Tax AG Switzerland Tax advice
Saba & Co. Intellectual Property Lebanon Tax advice
Tricor Business Outsourcing Singapore Legal advice
Tricor Payroll Services Pte Ltd Singapore Legal advice
Tricor WP Corporate Services Pte. Singapore Payroll advice and processing
Twiggy MH Liu Law Office Hong Kong Legal advice
Ulrich Weber & Partner mbB Germany Legal advice
WongPartnership LLP Singapore Legal advice
WP StB Christian Hecht Germany Payroll advice and processing / Tax advice
2022 Annual Report
35
Overview of Professional Advisors
2022 Annual Report
36
Abbreviations
AML – Anti-Money Laundering
APAC – Asia Pacific Region
API – Application Programming Interface
B20 – Business Twenty (G20)
BIS – Bank of International Settlements
EC – European Commission
ELF – Entity Legal Form
ESG – Environmental, Social, and Corporate Governance
FSB – Financial Stability Board
FSO – Swiss Federal Statistical Office
GHG – Greenhouse Gases
GLEIF – Global Legal Entity Identifier Foundation
ICC – International Chamber of Commerce
IoE – International Organization of Employers
ISO – International Organization for Standardization
KYC – Know Your Customer/Know Your Client
LEI – Legal Entity Identifier
LENU – Legal Entity Name Understanding
OECD – Organization for Economic Co-operation
and Development
ROC – Regulatory Oversight Committee
SWIFT – Society for Worldwide Interbank
Financial Telecommunications
ToIP – Trust over IP Foundation
vLEI – Verifiable LEI
2022 Annual Report
Website:
https://www.gleif.org/en/
Email:
info@gleif.org
LinkedIn:
https://www.linkedin.com/company/
globallegal- entity-identifier-foundation-
gleif-/?trk=bizcompanies-cym
Twitter:
https://twitter.com/GLEIF
YouTube:
https://www.youtube.com/channel/
UCP2xdWOFG7dWNaFIBKyejhg
Blog:
https://www.gleif.org/en/newsroom/blog
Contact Us
GLEIF Locations
Headquarters:
Global Legal Entity Identifier Foundation
(GLEIF)
St. Alban-Vorstadt 5
4052 Basel
Switzerland
German office:
GLEIF
Bleichstrasse 59
60313 Frankfurt am Main
Germany
US office:
GLEIF Americas
2500 Plaza 5
25th floor
Harborside Financial Center
Jersey City
New Jersey 07311
USA
Japan office:
GLEIF Japan
3F 1-1-3
Marunouchi
Chiyoda-ku
Tok yo
Japan
Singapore office:
GLEIF Singapore
80 Robinson Road
#02-00
Singapore
068898
Acknowledgements
GLEIF thanks the following organizations for their
support with the GLEIF Annual Report 2022:
Partners
AMANA consulting GmbH
Veronikastraße 36
45131 Essen
Germany
XBRL International, Inc
Ste 103
100 Walnut Ave
Clark, NJ 07066
United States of America
LEI: 254900ARU0VC1WY6GJ71
iseepr
5, The Boulevard
Leeds Dock
Leeds
LS10 1PZ
United Kingdom
LEI: 213800L1Y3SPQ7155828
Raw Creative Ltd
Royal House
110 Station Parade
Harrogate
HG1 1EP
United Kingdom
37
2022 Annual Report
38
Terms and conditions
The GLEIF Website Terms
Graphics, layout and typesetting
Raw Creative Ltd.
Harrogate
United Kingdom
CGI
Staudt Medienproduktion
Kriftel
Germany
Images
www.shutterstock.com
Publishing Information
Published by Global Legal Entity
Identifier Foundation (GLEIF)
St. Alban-Vorstadt 5
4002 Basel
Switzerland
Company number
CHE-200.595.965
LEI of GLEIF
506700GE1G29325QX363
LEI issuer
Swiss Federal Statistical Office (FSO)
Supervision
Swiss Federal Supervisory Authority for Foundations, Bern
External auditor
Ernst & Young Ltd (EY), Basel
© 2022 – GLEIF
gleif.org
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