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good morning good afternoon or good evening thank you all for joining today's webinar transforming client lifecycle management with the le I first we like to thank you all of during these turbulent times for joining and we wish that on for all of your friends family and colleagues are doing well during this during this extraordinary time and my name is Claire Rowley I manage the business operations at the global le i foundation myself and my colleague guru who will be presenting today and I turn to bucho to present yourself Thank You Claire good morning good afternoon and good evening everybody my name is Bertram NT Schultz injera and I've worked as business relations and policy research manager at Goliath I'm mainly responsible for preparing public consultation responses that GLAAD supplements conducting policy research and managing lives globally important financial institutions relationship group it's a great pleasure to be here with you today and I would like also thank to best for giving us this opportunity thank you Thank You Claire thank you good so indeed many things to bath'd for providing the opportunity for us to give the briefing on the global le eye system and the le i today and the first page of our agenda here you will see we will provide a background on the global le I foundation and the le I butcher will describes some of the current and future use cases and then we will dive into the focus of our discussion today and that is legal entity identification and how the le I can bring benefits for client lifecycle management we will close out with boots who will describe our call for action and opportunities for future engagement so to start with a bit of background about the foundation and the le I I'll give you a snapshot of the global legal entity identifier foundation and then describe the bit of the history and the governance structure so we the global le eye foundation we are as not-for-profit Swiss foundation founded by the Financial Stability Board we operate in a three tiered structure and in that structure we are overseen by 71 regulators and 19 observers that participate in our regulatory oversight committee we additionally have a board of 18 directors that are monitoring our operations we are a small organization so in 2019 our budget was just above 10 million US dollar we have 44 employees from 24 countries we partner with 35 organizations for the issuing of le eyes on the side here you see 34 but we will announce a new partner at the beginning of May and at the end of 2019 we had almost 1.6 million le eyes issued all over the world I'd like to provide you now a bit of information on the history and the governance structure of the system the global le AI system was born out of the previous financial crisis in 2020 leaders came together and identified that one of the main problems that prevented reconciliation of risks and identification of troubles in the financial system leading up to the 2008 crisis was the inability to uniquely identify parties to financial transactions around the world the g20 leaders commissioned the Financial Stability Board to investigate and to put forward a proposal for the structure of the global le AI system the structure that was ultimately recommended by the Financial Stability Board has three tiers at the very top we have our regulatory oversight committee as I mentioned earlier this is 71 members and 19 observer organizations from around the world and this organization is responsible for the policy of the global le AI system an example about nine months ago or so the le AI regulatory oversight committee concluded a policy for fund relationships and how these should be represented in the global le AI system after that policy is concluded it then comes to us the foundation and our partners for implementation and you'll see that on the next page this is a demonstration of the legal structure for the operational pieces of the global le AI system you'll see here on the left side of the screen the life the foundation and we are connected to these le I issuing organizations we also refer to them as L OU's local operating units the le I issuers are responsible for providing le I services to registrants or legal entities they bring the local knowledge to the system now every le I assure goes through the accreditation program which is a rigorous nine month to one year depending upon the organization program where we ensure that the operational technical legal integrity of the organization is fully aligned with the expectations for the global le AI system all of our le I issuers enter into a master agreement with us the foundation and this ensures that the le I services that are provided to legal entities around the world are consistent and are monitored daily by us the foundation this Master Agreement and the entire framework for our operation is public information and it can be found on the website of the foundation the same master agreement has been signed for all 35 of our partners and that is the structure for going forward so these le I assures they play the role of connecting to the registrants and providing the le I issuing services they provide back to the foundation on a daily basis the le I reference data we as the foundation we public that we publish that information to our website and we make it available free of charge to all types of different actors and you'll see those on the right-hand side of the slide the le I reference data is accessible via Terms of Use but this is free and open public data for any user I'd like to know turn now to a to the legal entity identifier itself and give you a brief overview of the Elly I the Elly I is a 20 digit alphanumeric code that is based on the ISO 1 7 4 4 2 standard it connects to key reference data that enables clear and unique identification of legal entities participating in financial transactions you'll see from the image on this slide the type of information that is associated with the Elly I so we have the basic business card information for example the legal name the address the legal form and we also have information on direct and ultimate parent information so the reference data pool associated with the Elly I answers two questions who is who and who owns whom you will see here a demonstration some screenshots from our website of what the Elly I reference data looks like in this case here we have provided a demonstration of Nestle and you'll see the basic business card information in the middle of the screen and then the two boxes towards the bottom show you those direct relationships and then the embedded structure and hierarchy of relationships from subsidiaries etc all of this information is made available on our website it is accessible either as a full file download API or the individual search and you're seeing the results of an individual search here on the particular screen I'd like to take a pause here and mention to all participants that we welcome questions throughout the entire presentation you have the opportunity to raise questions via the chat box and we will address all questions at the end of the presentation so with that that concludes a bit of background information on the global le AI system and the le I and I will turn to bhutesu to go into some of the current and future use cases thank you very much clear in slide 12 you see a number of regulations requiring the le I in regulatory reporting from United States to China from European Union to Mexico from Mexico to India in a very global scale regulatory framework for elia reporting as Claire mentioned has developed at the aftermath of 2008 financial crisis and due to difficulties in identifying counterparty data now as of today more than 100 rules published in Financial Stability Board jurisdictions referring to the le I and the le I for instance is mandatory for autistic derivatives trade reporting and securities reporting in most of the FSP jurisdictions in some jurisdictions the le I is also used in reporting to credit registries and for supporting the resolution of banks in China we see a completely different use case for the le I as Chinese customs used le I as an accepted identifier in import declarations from 29 restrictions in this slide slide 13 you see le is existing coverage and feature use cases currently the le is quite well covered in capital markets due to several regulations that I just mentioned therefore our next target is to make le are extensively used in payments credits and trade finance and supply chain management use cases establishing the le I in these areas will lead us to reach a significant area population worldwide so le eyes benefits can be better materialized for everybody with Co 819 and recent developments at the global scale we see that there is an increasing need in various industries for being able to identify who they are doing business with who their customers are and given today's business relationships are quite complex global and digital we need a global standard for entity identification more than ever its ideal of course if the standards supports digital identities we also have a parallel effort for establishing the area the global standard in digital world and I will provide an update about this shortly we see from the industry support that extending use cases for the le is achievable and desirable for many industry organizations for instance the payment market practice group advocates that with industry adopting the ISO 20022 standards it's time for industry also to adopt le I at the same time the group advocates that the le I would bring greater speed in payment processing time being a data connector among diverse range of data sets and assists le I data is structured it can support use cases of artificial intelligence machine learning for financial crime compliance another support is from International Finance Corporation of World Bank IFC emphasize that the area can be used in correspondent banking relationship and can Han can enhance the KYC profiles of the respondent banks with the V correspondent banks this would definitely help to minimize the risking in many jurisdictions that we face today Asian Development Bank from another corner of the world pioneers for le I to be used in trade finance ADB suggests that the consistent use of the le I in trade finance can help trade finance years to validate the identity of potential clients overseas counterparties and service providers so to reduce the commercial risk as well as risk of fraud money laundering and terrorism financing trade financials can also use the le o for reducing fraud at transactional level such as better detecting that we duplicate invoices by associating the le I to each financing requests the earlier I can also clarify the link between trade finance mechanisms such as documentary letters of credit and also specific parties lastly in this section I would like to provide an update on the life's work in digital area first is our work in digital certificates with in class 2018 annual report the lies le I is embedded within the digital certificates of life's signing executive officers this is the first annual report connecting the role of the signatory to an organization through the le I so you might ask what is the benefit connecting the role of the authorized signatory and the organization provides reassurance that data is reliable and information has not been tampered with regardless of the access point to the documents deploying digital signatures including that of the auditor creates a whole chain of trust the report is machine readable inline experience formats so the elimination of paper is achieved with increased certainty and trusts you can save the link here in the slide and watch in YouTube later on how it exactly works if you're interested in our second piece of work in digital area is the use of the elia in digital verifiable credentials these credentials are interoperable of interoperable cryptographically verifiable and facilitated by distributed ledger or blockchain technology by leveraging the le I within digital verifiable credentials counterparties can more easily accomplish the tests of identity verification authentication authorization and digitally identify persons able acting officially on behalf of a legal entity in collaboration with industry and regulators life so far has conducted two proofs of concepts one in the United States and Venom's in Europe and through use of the le I evident digital verifiable credentials regulators first were able to identify the legal entity associated with this particular regulatory filing second authenticate that the legal entity is indeed who it claims to be entered confirm that the persons signing and submitting the filing are indeed authorized to do so on behalf of the legal entity here le I is the linchpin for creating this whole trust chain I would like to stop here and we very much welcome your questions as Claire mentioned please post your questions by a chat box and I would like to turn over to Claire for continuing with our next section Thank You pooja and we will now dive into the heart of our presentation today and that is the approaching leveraging the Le I and client lifecycle management when the foundation was started in 2014 our first few years of operation were focused largely on first of all getting the operations in place and also supporting our regulators different initiatives as pooja has described involving the Le I starting in 2018 we we desire to look bigger so the mission that is put forth by the leaders of the g20 and the Financial Stability Board is a global system for legal entity identification of those involved in financial transactions and to enable that we need a deeper engagement with private sector so in 2018 we started that engagement with a survey we outreach to financial institutions based in the United States UK and Europe to understand better how is entity identification carried out in customer onboarding there we found that on average financial institutions are using four identifier z' for legal entity clients and this brings in several negative impacts first is the inconsistent information so reconciling the different reference data associated with those identifiers and we saw that this also caused the financial institutions to worry about the reliability of the reference data that they maintained for their counterparty this also leads to a drain on resources as often this reconciliation efforts is manual and requires human intervention which of course leads to delays and that we found on average to take six to seven weeks to onboard a new legal entity client which is not a nice customer experience and then lastly there is heavy reliance on data that is proprietary siloed and not standardized leading to a lack of transparency in understanding who one is doing business with so that was the findings that we gained in 2018 and that led us also to move forward with our deeper engagement with the private sector via McKinsey in 2019 we conducted a study in engagement with McKinsey looking into the business model of the global le AI system and how to adjust that business model so as to provide the benefits of the global le AI system more broadly for the private sector McKinsey conducted a voice of customer interview exercise where they went out to certainly our our home area the financial of the world but also into digital economy supply chain management and surveyed the different industries for difficulties in legal entity identification management what McKinsey found was the top pain point across all these industries is the manual linkage of entity data across different reference data sources that was quite a powerful understanding and also helped us to evolve our thinking of where the le AI brings the greatest benefits for the private sector when the global le AI system was first invented and there was a lot of discussions amongst the different regulators amongst the SSB also extending into banks and financial institutions there was an idea that perhaps the le I would replace existing identification systems well as we got deeper into our discussions with various industries and private sectors we understood that the value of the le AI is not so much replacement but rathe acting as a bridge linking across multiple ID systems and then we heard often from these voice of customer interviews the term esperanto that the le i could serve as a link across the identification systems rather than a replacement and thereby it would allow users to receive many of the benefits associated with the global le AI system so you have the open public data that has a rigorous data quality program applied reliance on a global iso standard rather than internal and proprietary identifier z' and also leveraging the links to other identification systems that already exist today for example to the bit code or to the icin for securities furthermore mckinsey then took a next step to investigate more deeply the business model and ask the question where could the global le AI system bring the most benefit for industry participants here McKinsey identified our home area and this is the financial industry specifically they focused on the customer onboarding they estimated that in total financial institutions or banks are spending 40 billion u.s. dollar annually just on customer onboarding routines by leveraging the Le I this could bring a 5 to 10 percent cost reduction or a cost savings of 2 to 4 billion and that cost savings would come from the enhanced efficiency of relying on the Le I so first the Le I would reduce duplicative data entries and improve data access across internal systems so as I mentioned earlier where before and there is a reliance on four different identifiers and reconciliation across these different data sets rather using the Le I to connect and then being able to eliminate the manual the manual reconciliations between these data sets and then the additional game inefficiency would be eliminating manual data lookups and enabling straight through processing through to external data sources so you will find that in almost any major financial vendor product the Le I is already provided as it is needed for risk monitoring and compliance reporting by simply leveraging that hook into the vendor product there could be significant cost savings by eliminating manual procedures and enabling that straight through processing and what McKenzie emphasized was by using the Le I at that very first touch point with the client and starting the relationship with the client by using the Le I as identifier the financial institution has many downstream positive impact in the general client lifecycle management so once the client has that le I associated the Le I is a lifetime experience it does not change over time and it can follow the client across its different business transactions within the financial institution it can help with activities such as risk monitoring and understanding the profile globally across the institution compliance reporting two different regulatory authorities transacting and billing through a global unique identifier and of course the regular know your customer refresh and repeating many of those many of those procedures that were carried out in the initial onboarding on the next page here you see an overall graphic of client lifecycle management and where le Ayesha whants would start the benefits what McKenzie found in their in their surveys and specifically with the financial institutions the Le eye is already a well-known identifier in financial institutions however it is often just used for the regulatory reporting and compliance function rather if the le eye were applied at the very beginning of the interactions with the legal entity or business clients this could transform the way the client profile is built and enhanced the efficiencies what butcher will discuss in the next few slides is embedding that le is to ensue in this diagram at the very first steps of that client lifecycle management when the client is making first contact into the financial institution and that onboarding is completed I will turn over now to put you to go into more detail Thank You Claire in this section I would like to share with you as Claire mentioned our recent ongoing project with financial institutions called validation agent framework which would allow financial institutions to use Elia at the beginning of onboarding stage that Claire just demonstrated the aim of this framework is to incorporate banks into the global lvi system and leverage banks business as usual procedures in entity onboarding after our several discussions and engagements with various financial institutions we understand that today as part of the customer identification program all financial institutions to some basic checks such as the legal entity name business register information authorized signatory headquarter address legal address branch information subsidiaries and ownership information before they on board a new client organization of course it's just a small part of what financial institutions do if during and before the onboarding process with the audition with bit validation agent framework we think that banks can leverage their existing kyc procedures and at the same time through partnering with an le i issuing organization they can also issue an le i for each important each on board new client organization of course we are aware that banks have a more broader set of tasks and checks as part of the client onboarding such as viewing sanction lists obtaining beneficial ownership information industrial sector classification and so on in globally a system currently before issuing an le i to a legal entity area issuing organizations exactly to what thanks to here in the middle section here using the intersection of these tests in the middle column however given there is a duplicate effort we are suggesting that banks can simply leverage their existing business as usual procedures and cooperate with the Ilia issuing organizations for performing the technical part the part that used in the left side Elya issuing organizations can support financial institutions with performing check for duplicates and check if this legal entity has an already and ellia in the globalized system or not and early aging organizations can support banks for managing challenges issue aisel 17 742 standard compliant le i and published a lyric cards to glass on a daily basis and some of you might ask why should i do so although it's simply leveraging my business as usual processes why should I get involved in this here as you can see financial institutions have more four major benefits for adopting the Le I widely and making the Le I as part of their onboarding processes first benefit is the customer satisfaction banks offering the Le added legal entity actually take away customer burden to submit data both to the bank and the Le I issuing organization at the same time you know much better than us customers are loyal to where they put their data so customer retention should be high in banks offering this area service to their clients second benefit is faster onboarding for the clients as Clair demonstrated through the findings of the McKinsey study using the elia as a data connector between internal and external data sets translates to seven to 15% of reduction in hours per onboard customer a third benefit is the compliance for AML kyc and sanctions violations global financial institutions have paid over 36 billion US dollars in fines since the financial crisis in 2008 probably more important than these points is the reputational costs given clients le i is required as a required data field in many regulatory reporting files and also for suspicion activity reports using de le as a primary key would help to reduce false positives in AML alerts and give better visibility to the bank for the entities in question for benefit is the reduction of costs Claire also mentioned that wider usage of the le I by the financial industry means two to four billion US dollar cost savings due to generated efficiencies we can create efficiency in transaction chains by increasing straight through processing and so reducing costs through interoperability of the le I in overall strategic approach to reference data management will reduce operating costs and improve improving risk management and compliance for banks we also know that banks are right the sensitive about disclosing to their clients data and also their association with these clients to their competitors therefore you can ask when the financial institution will date the client data and pass this information to the le I issuing organization if this financial institutions information will be visible in open as an open data in global le irepository well the answer is short and it is not no bank information will appear on the le I record and the managing a value fields will be populated with the le i issuing organization that bank partners with even life do not know which LDI record is well dated by the bank or the elia issuing organization as today and for testing this model through short-term pilot projects we are looking for volunteer financial institutions in case you're interested in we suggest at seven step approach for our engagement with financial institutions with you first we will be signing an NDA non-disclosure agreement with the financial institution so we can exchange documents more comfortably and we can speak rather easily second we will be agreeing on the commitment statement this is a mutual commitment document from our side and your site that we align and commit for sparing time and human resources for the completion of this short term pilot project third we introduced glass standards processes and requirements in dedicated sessions we go through each and every glass service together and this will create the basis for the next step the next step is the fourth step we do a gap analysis between the client identification process and the le I issuance process this is a very important step for the bank to take over and clarify the gap between these two processes but as I mentioned before actually our experience in our engagement with financial institutions so far demonstrate that this gap is rather small small and minor next the elia issuing organization comes into the picture and the financial institution and the earlier issuing organization agree on which tests to be undertaken by financial institution and which tests say with the AVO you and the last stage is a world through demonstrating that the financial institution and LED cooperation works well at the very end of the project we expect financial institution to issue le is for several entities in collaboration with le i issuing organization and here i would like to highlight that for the pilot project we do not expect a deep investment or technological upgrade from participating financial institutions but rather we aim to explore what technical legal and financial dimensions need to be considered while we leverage banks business as usual processes and lastly I would like to provide brief information on the glides globally important financial institutions relationship group in short our Jaffe group currently we have members from 22 globally systemically important banks and our members scope is getting bigger and bigger we organize regulatory update calls project discussions and other areas of in other areas of mutual interest on a quarterly basis so if you're interested in joining the group please send us an email you see Clary's and my email addresses in the slide and we would be very happy to follow up with you afterwards I think I can stop here now and turn over to Claire for starting our Q&A session thank you to Bertram and we have already a few questions in the Q&A and we do encourage for anybody who likes to raise a question please feel free to put in the QA we also have a few questions from our engagement with financial institutions already on the topic that we will share with you but I will start first with the items that are in already our chat area so the first one is regarding ISO 20022 and there is a question with ISO 20022 using the Le I and payments do you see the benefits of an individual getting in Le I can an individual get nellie I so we do like to be very clear here the Le I it is a legal entity identifier it is not intended for individuals there is one small caveat and if you if you take a look at the Le IEEE standard there is an exception for individuals acting in a business capacity and these would be individuals that are for example registered in a local business registry or Chamber of Commerce and generally what we see that is for example traders and depending upon the jurisdiction at times traders have to also register for example with the local Chamber of Commerce that being said I do like to highlight where Gucci mentions mentioned some of our digital projects so first with digital certificates what we demonstrate there is the power of the le I being connected to individuals playing a particular role within the organization so in butch's example of our annual report we had big life CEO and chairman of the board sign digitally our report with their digital certificate we also had our third party audit Ernst & Young sign the report so we are for example right now there is a ballot for the ISO 17 for for two standards so the le I standard where we look to incorporate the concept of role to allow the extension of the le I to identifying persons acting within an organization in specific roles and then we are also leveraging this concept in our work with the self sovereign identity management or the verifiable credentials as which you mentioned so again here you have the idea of a person or employee filing a regulatory document on behalf of the legal entity and in the proofs of concept that we carried out which involved regulators one in Europe another another few in the United States and the proof of concept demonstrated how the verifiable credential contains the le I as well as the role of the individual that is signing or submitting a regulatory filing and that thereby enables the trust chain to be to be verified and traced back to the original issuer of the le I so indeed the le I itself is not intended as an individual identifier but there are certain extensions of an application of its application which allow for identification of of individuals or persons that are acting in roles within a legal entity and then I will move to the next item and this is a comment that there is indeed a BAFTA working group that has developed a distributed ledger payment commitment that will accommodate the use of le eyes and trade finance and we add at life we are not familiar with that but we very much do appreciate the initiative and we certainly welcome contact to to myself and Buju about further details that sounds very interesting and promising and then perhaps some we just addressed the new question that is that has appeared in the chat and for this one butcher I will turn over to to you and this is regarding the use of the le I in ISO 20022 and specifically in the UK is the Le I at mandatory and I turn to you butcher to describe that yeah sure Thank You Claire and thank you for the question and actually Bank of England is the first central bank in the world requiring the use of the Le I in within the margins of ISO 20022 the implementation and the mandatory use of the le are first is planned for payment messages between financial institutions so financial institutions will be identified with their le I as the first step and if you become mandatory around 2023 time frame but Bank of England's idea is that for the next steps all originators and beneficiaries who are legal entities should be identified with their le I we know that it's not a short term project and but it's we really very much appreciate Bank of England support for mandatory use of the le I and ISO 20022 was a great start for it clear I don't know if you would like to add anything else on top of it I think that was very good and with that I will just raise three questions that we have frequently heard in our engagement with banks and financial institutions on the usage of the le I and onboarding and the first one is regarding the value that the le I brings to the onboarding process so in particular certain institutions they have pointed out well we still have to carry out the adverse media screaming the s nction list screening etc and which will may I ask you just to highlight one more time here where the le I indeed the bank is still having to carry out these types of activities but where the Le eye is burning the value in the customer onboarding process yes sure clear here the value is that you do not really need to make any changes in your own process because you're basically leveraging business-as-usual processes and two fields that you already verify and validate like company name legal name headquarter address legal address business registry information authorised signatory and so on and the real value is that with the le I in your data connector you can easily connect your internal and external data sets and it's a great addition it's a great enhancement of financial institutions data management capabilities so once the clients alia is obtained before you onboard a client you are very close to see the 360 percent of single client view I think this is the real value okay thank you for sure and I will I will raise just one additional question that has come from our frequent interactions with financial institutions and then I see we have additional question in the chat and the question that we often get when engaging with financial institutions is the difference in the refresh cycle so indeed in the global le I system there is an annual refresh of the reference that are required versus in the client lifecycle management the refresh cycle often depends on the it depends on the risk profile of the particular client and here we like to emphasize that indeed we recognize that there is this gap but part of the pilot projects goal is also to explore what model makes the most sense for the financial institutions and also for the global le AI system from our engagement so far we have some financial institutions that have said well as a matter of fact we have we find great value in the annual rep and the annual refresh of this core reference data so for example the operating status of the entity its address information and they've actually built in and updated their protocols such that this basic reference data around the le I it is updated annually aligned with the global le i system however we have heard from other organizations that their ky procedures are quite are quite strict and there's not very much appetite to change and this is where we are engaging with discussions involved the financial institutions and then also our regulators and our regulatory oversight committee to better align the refresh cycles this is a topic that is of great interest also to the regulators in our regulatory oversight committee so we bring any of the major issues like this to them for their policy consideration in the system so indeed this would be a topic that we look to dive more deeply into with participating institutions and then I will turn to the question in the chat session and this one I will turn to you boo true to respond so the question it asks for some clarity from a practical point of view if Bank a on boards a customer and performs kyc doesn't think and and then there is bank B that wants to sign this customer does Bank B rely on Bank a verification to perform the KYC and I'll turn to you butcher for response to that Thank You Claire yeah this is a very good question and this is a question we frequently hear from financial institutions actually issuing the le I during the onboarding process does not remove your kyc obligations right so and regulators are quite strict on this and they expect that although banks can do the verification and validation and issue the le I in cooperation with earlier issuing organizations you still need to keep doing your kyc procedures and performs evasive procedures here we do not expect Bank age to rely on Bank B's verification - or or stop performing kyc obligations because the legal entity is order verified by Bank a we know that there is some cave icy utilities planning to use le I as the key identifier and maybe banks who join this cave I see two T's might rely on each other's verification and validation but in a normal world and in a separate individuals Bank relationship we do not have such an expectation Thank You Bertram and then I will raise just one final question and that we often get in our discussions with financial institutions and then I also encourage if there's any additional questions please put them in the chat and so the final question that I will raise is regarding cost so indeed for those of you that are familiar with the global le AI system today there is a cost that is that is paid by the legal entity for the initial le I registration and then annually the renewal today that cost is roughly around 65 US dollar and when we engage with financial institutions on the topic of embedding the le AI and onboarding the feedback is well for for certain clients that amount of money is is not there's not much of a concern especially considering the amount of money that we already spend simply on conducting the onboarding process but if we are to extend the le I more broadly across our portfolio then cost becomes quite a big concern and this is another aspect of the pilot project that we look to engage with the financial institutions and better explore so we have two parties well three parties that are involved in the pilot project the financial institution the le I issuer and the glice within the global Li system there is a fee that is paid from the le I issuer to look life this is this is 11 US dollar annually for each le I that's issued or renewed and then there's the fee that the le I issuer charges to the legal entity with the pilot project we aim to investigate or experiment with both of these fee structures to see how we can bring down the cost to a price point that is that is that allows for wider broader usage of the le I across the portfolio and we also like to highlight that as mojo has described in this model we are taking out do put duplic duplicative activities so in today's world you have the le I issuer that is carrying out validation verification and you have the financial institution doing the same activity so by taking out this duplication of activities naturally the cost should come down so we see this as as we see cost reduction for the overall system and therefore for the users of the global le AI system as a very important part of this type of engagement okay and I see we have received one additional question in the chat area and that is some banks are already working with registration agents locally because this is easier for banks do you think the registration agents will be unnecessary in the future with the bank pilot project and I'll turn to butcher he'd like to offer some thoughts on that yeah sure thank you Claire it's the registration agent concept in a way was born at aftermath of the mythic to implementation because there is a huge demand for the le I and Illya issuing organization's capacity was rather limited in responding on this big demand and registration agents concept is relatively different compared validation agent concept now that we've proposed because with registration agents most of them let's say 90 percent of registration agents just pass the information of the client to the local operating units earlier issuing organization without really verifying or validating the data but here with this frame regulation agent framework we expect banks to do the verification and validation and just pass to the Alya issuing organization for doing or for contributing to the technical part of the Ilia issuing process so this is the main difference and registration agents there are a few registration agents who are doing verification indeed as you mentioned but their number is not that big and and we believe that if this pilot project gets successful we might see indeed some richest number of registration agents you drop in the feature yeah and I just like to add to that we certainly don't think that the registration agent concept goes away so we believe that there's many different ways that financial institutions desire to engage in the global le eye system as much you mentioned some of them prefer their existing relationships and and and especially the registration agent oftentimes provides a lot of services in local language that perhaps the le eye issuer is not an expert in the local language so we see the two we see the two models will operate in parallel whatever is the more desired relationship that the financial institution is interested in and we have received we have received a few additional questions the first one is will le I provide relationship with other le eyes like the holding structure a parent company sister concerns so in the global le eye system we collect information on direct and ultimate parent according to an accounting consolidation standard this was a policy decision by our regulatory oversight committee and they could choose and they are actually we understand having a lot of having discussions on if there should be some expansion beyond just the accounting consolidation definition that being said the data that you can find today in the publicly available data pool it does demonstrate hierarchies the way the reporting works is the legal entity reports upwards so it reports on its direct and its ultimate parent and therefore it naturally allows the it naturally allows complex corporate hierarchies to emerge in the example I demonstrated a bit earlier of Nestle if you take a look at that on our website you'll see that you can click into the embedded the embedded hierarchies so if you have a subsidiary of a subsidiary you can trace through that relationship and I do like to to to be absolutely honest we know that it is not a complete corporate hierarchy but it is the start of this information and of course as open and public data it's a very good starting point then for further investigation and then our last question here is on accessing to the presentation deck and we certainly it will work with back to make the presentation deck accessible to all participants I take a pause there and just see if there are any final questions coming in through the chat and we'll give just one moment in case there is someone typing okay I do not see any additional items that are coming in through the chat so I would like to bring our presentation to a close we thank you very kindly for your participation and the lively interaction with our discussions we hope you found this information useful and please send an email to either go to myself if you like to discuss further the engagement in a pilot project we wish you all a wonderful remainder of your day and also good health in this difficult time they do very much for your time thank you