Multi Jurisdictional Compliance

23 October 2014

WelcomeMulti Jurisdictional Compliance

New regulation is produced faster than most in house teams can keep up with it, businesses are expanding into new markets exposing them to novel and often extensive compliance obligations. What tools and systems can you deploy to avoid time consuming and reputation damaging breaches?

This webinar will share case studies and examples of systems, approaches, policies, communication methods and tools used in practice to ensure cost effective risk management. How do you identify compliance obligations, then manage and monitor compliance effectively

Polling Question 1

How important to you is multi-jurisdictional

legal compliance?

• Top Priority

• Medium Priority

• Low Priority

Welcome

• Speaker Introductions

– Stephen Hopkins, Partner & Head of Global Client Development

– Graham Richardson, Partner & Head of Eversheds Consulting

– Lee O’Connell, Consulting Director

– Claire Williams, Programme Office Manager

Agenda

• What is multi-jurisdictional legal compliance?

• Legal Risk or Legal Compliance?

– What’s the difference?

• The challenges

• Are you compliant? They weren’t…

• How do you identify your compliance requirements

– Systems, Methods & Tools

• Managing & Monitoring your compliance obligations

• Case Studies

• Q&A

What is multi-jurisdictional legal compliance?

• Legal Compliance is the process or procedure to ensure that an organisation follows, monitors and manages relevant laws, regulations and business rules within their operations

• Multi-jurisdictional compliance is when an organisations operations are global and span many diverse countries, each with differing and challenging regulatory regimes

Legal Risk or Legal Compliance?What’s the difference?

Legal Risk or Legal Compliance?What’s the difference?

How do you identify your legal compliance requirements?

The challenges

• Time and resource to manage the task

– Using a mix of qualified project managers and lawyers to deliver the project more time and cost effectively

• Controlling a budget on what can be a very expensive task

• Reliable and trustworthy legal counsel across multiple jurisdictions

– Even with 150 plus firms in our network we have to ensure we use the right specialists with the right expertise

• Controlling the quality and consistency of advice received

• Updating the advice on a regular basis

• Presenting the advice in a useful format

Example of Data Room

Example of Reporting

Polling Question 2

Do you feel that you adequately identify,

manage and monitor your global

requirements?

• Yes

• No

Are you compliant? They weren’t…

Walmart

A bribery scheme identified in 2011 that fuelled the company's explosive growth in the Central American country by paying officials to speed up permits and ignore laws

Result: Past SEC and Justice Department penalties are usually either 1% or 2% of annual sales

In 2012, this would have meant at least a $4.5 billion, or 77 cents per share, penalty for Wal-Mart.

Investigations are ongoing and they have spent $439 million in the last 2 years on investigations

Legal Compliance• Corporate Governance

• Fraud and Theft• Anti-bribery and Corruption

• Anti-Trust and Competition

Risk• Cultural

Are you compliant? They weren’t…

HSBC

Are you compliant? They weren’t…

McDonalds• In January 2012 McDonalds tried to promote its

brand and engage with customers via social media across the globe

• McDonalds promoted the following trends #meetthe farmers and #mcdstories with the latter asking for positive dining experiences in its restaurants

• Instead respondents joked about obesity and dog food

Result: McDonalds pulled the campaign within 2 hours of going live

Users were still tweeting using #mcdstories up to 10 days after it was removed

Legal Compliance • Cultural• Brand Protection

• Reputation

Managing & Monitoring your legal compliance obligations

• Early warning systems

• Compliance hotline

• Regulator relationships

• EWRM

• Legal Risk Registers

• Compliance Risk Mitigation plan

• Compliance training

• Legal Compliance Audit processes

Systems, methods & tools

• Policies & procedures

• Facilitated identification workshops

• Control Risk Self Assessment

• Focussed questionnaires

• Compliance e-mail briefings

• Compliance advocates in-country

• Frequent monitoring and review

• Reporting and KPI’s

• Continual internal promotion of compliance

Systems, methods & tools

Case Study – Global Pharmaceutical Organisation

The Challenge:

• Our new client had purchased rights to sellproducts in 21 jurisdictions across Europe

• No presence previously in those countries andno idea what compliance obligationsexisted, and it was unknown if they wereoperating compliantly

• They asked us to provide advice in 9 separateareas of legislation in scope (including Tax,HR, Environmental, IP, Data Protection,Company Secretarial)

The Approach:

• Project Managed from the UK (EvershedsConsulting, Partner supervision and subjectmatter expertise support)

• Leveraging network of owned andrelationship firms

• Local counsel engaged to work to strictguidelines in terms of time and costs

• Coordination of 378 different legaldocuments, by one Project Manager, in 3week period

The Outcome:

• Project delivered on time, and within budget

• Documentation loaded into secured DataRoom for client draw down

• Meeting the clients expectations regardingcomplex billing requirements

Key Learnings:

• Having the right skills and knowledge in theright jurisdictions

• Clear and consistent instructions

• Careful project management of costs

Case Study – Diversified Industrial

The Challenge:

• Our new client, a large diversified global manufacturing company needed a full legal audit review to understand their position in respect of legal compliance across their global Operations in 24 countries, with over 200 legal entities

• Three Month project

The Approach:

• The review was to focus on the complianceareas of Operating license and permits, Real Estate portfolio and Company Secretarial information

• Compliance audit project managed from the UK (Eversheds Consulting, Partner supervision and subject matter expertise support) identified over 250 entities

• Coordination/consolidation to 185 global entities with GC based on our findings

• Advice collated in consistent report friendly format and presented to client via secure online data room

The Outcome:

• Project delivered to client requirements,including change of scope

• Detailed audit spreadsheet providing documentation and legal compliance detail and information

• Copies of scanned legal documentation loadedinto secured Data Room for client draw down

• Guidance and advice consolidated into singleuser friendly report with risk based RAG ratingand executive summary

Key Learnings:

• Clear and consistent instructions at outset

• Internal communications on project objectives

• Subject matter expertise

• Careful project management of documentationand external counsel costs

• Secure storage of scanned documentation

Polling Question 3

Have you now changed your opinion on how

important to you is multi-jurisdictional legal

compliance?

•Yes

•No

For further information

Please contact:

• Graham Richardson – Head of Eversheds Consulting: grahamrichardson@eversheds.com

• Stephen Hopkins – Head of Global Client Development: stephenhopkins@eversheds.com

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