Reinventing Deal Execution and Compliance
Structured finance
Overview
Structured finance is an area that has long been ripe for automation. Documenting structured finance transactions is a particularly burdensome task for the lawyers involved, often associated with high legal fees. Currently regulators around the world are pondering new initiatives aimed at providing investors with additional disclosure, which will result in even more complex documentation.
Thanks to our legal background and our relationships with law firms in key jurisdictions, we are able to offer issuers and originators a complete document automation solution for structured finance transactions that covers both the issuance of new products, ongoing reporting and the interaction with rating agencies.
Our approach
The most important factor in successfully automating a securitization or repackaging program is an understanding of the myriad documents used for these types of transactions and their relationship with each other. The ability to quickly adapt the underlying templates when the legal framework changes is another key factor.
The data capture piece must be set up such that term sheet and pool data can be inputted either manually or directly from the issuer's or originator's IT systems.
When one document changes, corresponding changes should automatically be made to all other documents.
To the extent possible, the system should pull boilerplate text from a database so that the same facts are described consistently across all documents.
Ongoing reports should be generated from the same source data.
Finally, there should be multiple delivery options for the documents so that they can be stored in a transaction database, filed with a regulator or stock exchange or published on a website.
To round off our structured finance portfolio, we offer issuers a secure document repository that complies with the requirements of SEC Rule 17g-5 under the U.S. Securities Exchange Act of 1934 and the requirements discussed in connection with the proposed amendments to EU Regulation 1060/2009 on Credit Rating Agencies.
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