Leading financial services Organization
Increasing regulation (FSA, Dodd-Frank, MiFID, etc.) has tasked Financial Services organizations with ensuring they have better access to and insight into contractual agreements based on these regulations.
In order to comply with regulations such as FSA, Dodd-Frank, and MiFID, the organization needed accessibility and visibility to their contractual agreements. For example, they needed to report on key commercial relationships and understand the terms in case of insolvency. More specifically, the new regulations require financial institutions to produce and continually update a Living Will should insolvency occur.
To achieve compliance, the organization needed the ability to define additional data extraction policies based on regulatory requirements, business needs, legal cases, etc. The organization was paying a premium to Legal Process Outsourcing firms to manually search for all contractual documents and manually input required metadata into a system of record or provide the answers in a spreadsheet.
Seal Contract Discovery was deployed to begin processing the company’s contracts. Given the volume of contracts, this would be a project that would take several months to complete for most vendors, and un-qualifiable in terms of performing the task manually.
The key results achieved were:
- Discovered all their contractual documents
- Identified the necessary specific clauses
- Created a fully searchable contractual document corpus
- Fully audited process to review all necessary contractual documents
- Reduced time and cost for initial contract review and summary creation
This resulted in a reduction in time to review each contractual document and a better system for monitoring in house General Counsel resources as opposed to relying on an LPO to determine effectiveness. A visible audit trail allowed the organization to determine where bottlenecks existed and how to correct them.
This was not a one-off task. Seal continues to provide a fully searchable contractual platform to enable the business to respond to event driven activities in a timely fashion. With the reduced time and cost for contract review, the organization can now quickly determine additional metadata needs that are then applied back to the entire contractual ecosystem. In addition, the platform provides the business with a vehicle to proactively review their contractual assets for trends and future risks and savings.