Global Subsidiary Governance Services Focus - Winter 2020/2021

In the last six months, it is fair to say we have seen the global subsidiary governance industry under more pressure than it has ever been. Compounded by the ongoing trend of increasing regulatory complexity, many general counsels and corporate secretarial teams at multinational firms were faced with the prospect of maintaining the full compliance of their international subsidiary portfolios from a ‘novel’ remote working environment. Despite this, the industry has responded impressively, coping with the mounting challenges of 2020 by adapting working processes and through the greater adoption of technology. The latter, a trend which has no doubt been accelerated by the pandemic, is something we have been pointing to for a number of years and will change subsidiary governance for good.

In this, our Winter Newsletter, we look at this trend more closely, highlighting the growing importance of data and the driving forces behind a more technology-driven global subsidiary governance sector. This will serve as an introduction to our first annual task management system thought leadership report, where we will be sharing key insights derived from our task management system data across over 160 jurisdictions, looking to cast a light on the complexity of the regulatory environment and the inherently opaque nature of managing global entities.

Also supporting this technological revolution is an article looking at a crucial component of any global subsidiary governance framework, the Compliance Calendar, which tracks and maintains up to date information on all annual corporate secretarial obligations. The Compliance Calendar, which features an automated engine for global compliance rules, is designed to help teams meet regulatory complexity head on, support intelligent planning, transparency and efficient processes of annual obligations, and is a key part of a successful global compliance strategy. Moreover, we will also highlight the importance of Knowledge Management and our Knowledge Bank, which plays an instrumental role in improving the way multinationals operate internally, facilitating collaboration between legal and business, being up-to-date with developments globally, ensuring timely execution of decisions and keeping entities in good legal standing.

In order to keep clients up-to-date with these changing regulations, in a time that sees deadlines and reporting channels change with bewildering frequency, especially since the pandemic necessitated flexible responses to an evolving situation, we recently launched our Twitter channel @CitcoInsights, providing timely updates from across the entire set of jurisdictions that we operate in. In the newsletter, we highlight a number of important regulatory updates to note so far in 2020, but we encourage you to follow for future updates which appear several times per week.

Finally, another central theme of 2020 has been an increasing focus on Environmental, Social & Governance (ESG) considerations.  We argue that, whilst a focus on ESG is not yet ubiquitous in the procurement of legal services, we believe it should be. A view of a potential partner’s ESG practices will allow a firm to identify vendors that would most likely be a beneficial long-term partner.

As we move towards the end of 2020, I would like to wish you all well, and hope that you stay safe in what has been a challenging year, but one I believe we will come out stronger from.

Kariem Abdellatif, Head of Citco Global Subsidiary Governance Services
Citco GSGS Focus – Winter 2020/2021