This global move to Risk Free Rates has a wide-reaching impact and a fast-approaching deadline. Before the end of 2021, you need to remove any reference to LIBOR that exists within your active financial products or contracts. We have a solution to help you find the documents, make the necessary changes, and facilitate client outreach.
Mortgages, loans, deposit facilities, derivatives, and floating rate bonds and notes can all reference LIBOR. It can also be found in ancillary contract terms, company pension schemes, commercial contracts and discount rates used in valuations. You may have thousands of documents with a dependence on IBOR spread across many repositories or individuals' folders within your organisation. You need to understand and manage each one so that there is no longer any reference to LIBOR after 2021.
The Automated Regulatory Compliance Document Solution (ARC-DS) will help you break down your LIBOR transition into automated processes, organising the documents involved, and triaging each case into 'simple' and 'complex'. This reduces the workload for legal teams and consultants, as you can focus them on the complex cases that need individual negotiation.
ARC-DS finds and ingests high volumes of contracts and agreements, from multiple sources across difficult repositories and folders. It removes redundant, obsolete, and trivial files from the equation, allowing you to focus on what is needed. It will standardise what is left, making it fully text searchable and easy to manage.
Use ARC-DS's AI capabilities to classify the all the relevant contracts you hold, labelling them with metadata. At this point you'll be able to extract contract attributes, and see the full scope of where a reference to LIBOR is present within all your documents, no matter where they reside.
Once you have identified and classified, you can customise workflows to help to manage each case review. You'll allocate individual negotiation to only the cases that need it. Functionality is available for 'simple' or 'complex' verification, authorisation, and governance, both internally and externally. The entire way, audit information is being captured automatically.
ARC-DS will create unified replacement documents, with standardisation of content and clauses. You can review the new documents for compliance before it is sent for client outreach and signature.
After validating the results, and reviewing any exceptions, ARC-DS will support your client outreach, helping with repapering and final client sign off via eSignature. Each document is stored securely and tagged so it can be easily located in the future. The old and new versions of a contract are managed together, simplifying the audit process.
The 2021 LIBOR transition will not be the only major regulatory change that affects the documents and information within your organisation. Changing regulation is inevitable, and ARC-DS is the technology companion for your business's continued compliance or repapering needs. When the next regulatory event comes along, you'll already be prepared with fully digitised contracts.
LIBOR reform deadline:
ARC-DS is powered by M-Files, Adlib and Hotdocs
M-Files provides a next-generation intelligent information management platform that improves business performance by helping people find and use information more effectively.
Adlib's purpose is to create better data that amplifies human potential and maximizes business performance. Their content intelligence and automation solutions help global enterprises harness the true power of better data. For more information, contact us at [email protected] or visit adlibsoftware.com.
HotDocs document automation solutions provide control and efficiency when producing documents. Banks, insurance companies, law firms, corporations, government bodies, and publishers all use HotDocs to reduce risk, aid compliance, and save time creating business-critical documents.