April 12, 2018
Thomson Reuters Offers Comprehensive Contract Remediation Solution to Support Global Financial Institutions in Preparation for Brexit
As the UK approaches its withdrawal from the European Union, many financial services companies are challenged to migrate large numbers of client contracts to avoid disruption to trading and services
LONDON/NEW YORK, APRIL 12, 2018 – Thomson Reuters is offering a complete technology-driven contract remediation solution to help global financial institutions tackle the significant operational and business challenges arising from Brexit. The offering begins with an assessment, in partnership with a client’s preferred counsel, of the impact of Brexit on its contracts, and continues with a process-driven remediation plan led by managed services professionals who have deep domain and project management expertise.
Whilst the UK has recently agreed in principle to a provisional 21-month transition period with the European Union, financial services companies are nevertheless acting to mitigate risk by initiating near-term plans to migrate clients to EU27 locations. This will entail large-scale contract remediation exercises across many thousands of existing client contracts, as well as a vast array of contract types. The resulting complexity poses significant operational and business risk at a time when remediation efforts are still ongoing from earlier financial regulations.
As an established leader in contract remediation and repapering efforts, the Legal Managed Services business of Thomson Reuters has successfully navigated some of the world’s major investment banks through previous large-scale remediation exercises, including those required by MiFID II and uncleared margin rules. Its Brexit solution is uniquely constructed through the flexible deployment of legal experts and negotiators who are equipped with cutting-edge technology, in-depth training on both Brexit and client-specific needs, and access to Thomson Reuters legal and financial information solutions for up-to-the-minute guidance.
Even with meticulous plans, Brexit is likely to introduce uncertainty that may require financial institutions to make quick course corrections. Thomson Reuters Legal Managed Services is built for such agility: it offers a flexible approach that gives corporations the ability to select the solution that best fits their Brexit strategy and has global delivery centers to conduct and scale work in the most efficient manner and in multiple languages. Moreover, the business’s managed services professionals are trained to leverage the most effective technology to ensure accuracy and efficiency, and they are highly adept at communicating and negotiating with large numbers of counterparties based on a client’s playbook.
More specifically, the solution includes the following:
- Strategy Development: In partnership with a client’s preferred counsel, Thomson Reuters Legal Managed Services professionals develop a comprehensive contract remediation plan, playbook and documentation templates to govern the process
- Negotiation Preparation: Identification of impacted documents and extraction of key legal and economic data by Thomson Reuters Legal Managed Services professionals using Logical Construct’s Lyncs platform, including a rigorous level of quality control throughout the project
- Contract Amendment: Amended contract generation with Thomson Reuters Contract Express, including workflows for negotiation, approval and e-signatures
- Renegotiation: Client outreach, query management and renegotiation of agreements undertaken by Thomson Reuters Legal Managed Services professionals in accordance with established playbook guidance, principles, template provisions and within the client’s internal risk, credit and legal policies
- Execution and Administration: Timely execution of documents, including reporting, population of data and uploading of completed contracts into the client’s contract repository and reference data systems.
The offering is highly modular and can be customized for any phase of a client’s Brexit programme.
“Thomson Reuters has a strong legacy of trust with large global banks based on our long heritage as an information services provider, and our managed services professionals have extended this reputation by successfully navigating customers through recent regulatory initiatives,” said Eric Laughlin, managing director of Thomson Reuters Legal Managed Services.
“Drawing on this strong experience and established trust, we are eager to help forward-looking financial institutions navigate Brexit uncertainty and begin the work of contract remediation with a finely-tuned solution that is delivered by highly efficient teams powered by leading technology,” he said.
Thomson Reuters Legal Managed Services provides alternative legal services including financial trade documentation, contract management, managed discovery, document review and advanced litigation services, and regulatory change management. Its solutions help global financial institutions prepare for current and new regulatory requirements including uncleared margin rules, MiFID II, Brexit, interest rate benchmark reform, and Securities Financing Transactions Regulation.
Logical Construct’s Lyncs platform uses a combination of information extraction, natural language processing and machine learning techniques to achieve the best extraction results.
Thomson Reuters is the world’s leading source of news and information for professional markets. Our customers rely on us to deliver the intelligence, technology and expertise they need to find trusted answers. The business has operated in more than 100 countries for more than 100 years. For more information, visit www.thomsonreuters.com.