Simplifying and Centralizing Global Corporate Governance
Global corporate governance is complicated because each country has its own requirements, governance policies, and compliance demands.
View this recorded webinar as we explain how CSC® can help. During this webinar, you will learn:
- What the global corporate secretarial landscape looks like after experiencing data breaches over the last several years
- The challenges of achieving entity compliance and maintaining corporate secretarial functions internationally
- Ways to centralize your data and documents for visibility into all your global subsidiaries
- Global legal entity identifier requirements
- And more...
Annie: Hello, everyone, and welcome to today's webinar, Simplifying and Centralizing Global Corporate Governance. My name is Annie Triboletti, and I will be your moderator.
Joining us today are John LaPalomento and Andrea Jonaitis. John is a product manager on the CSC Global Subsidiary Management team. He has been with CSC for over nine years, previously as a sales team leader and a product engineer with CSC Matter Management Solutions. John works with GSM prospects to present an accurate and clear scope of services, and remains in contact with them as the overall relationship manager for all GSM clients.
Andrea is a Sales Engineer in the Corporate and Legal Solutions Group at CSC. Since joining CSC in 2017, Andrea has specialized in global subsidiary management and identity management, working with prospects to present an accurate and clear scope of services, including helping subsidiaries stay in compliance, as well as demonstrating CSC entity management.
And with that, let's welcome John and Andrea.
Andrea: Great. Thanks so much, Annie.
John: Annie, thanks for having us today. We're really glad to share everybody's time. And for those of you on the phone and online, welcome to the call. Welcome to today's webinar, whether you're overseas or here in the United States. We're going to explore lots of different challenges of doing business globally and also take a look in much detail as to the solutions that CSC brings to market.
Andrea: For our agenda today, we'll begin our discussion by taking a look at the global corporate secretarial landscape. Lots of things are going on in the corporate space. There are lots of changes. Tough to kind of keep on top of those things, so we'll take a look at that landscape.
We'll move into the challenges of managing a multi-national entity portfolio and the ways that CSC can assist our clients with their global corporate governance. Then we'll talk about how to understand the status of your entities and achieve international statutory compliance through the corporate health check.
John and I will also share with you our core service to support your global portfolio, which we call Annual Compliance Support. And also, we'll take a look at some international transactional work that you may be getting into, and the way that CSC can assist with that type of transactional work as well.
We'll also briefly talk about global legal entity identifiers, or global LEIs, as you may have heard them referred to previously. And then finally, we'll talk about how to maintain trustworthy data in a central repository with CSC's award-winning entity management technology. We're really excited to show you the way that we can integrate that technology service with the service that we provide for our clients as well. And so, we'll have an opportunity to take a deep-dive of that entity management platform together.
But with that said, let's get into our first topic today, which is really taking a look at the landscape for global corporate governance.
John: And lots has changed certainly over the years. Some of the biggest changes we've seen . . . and we would expect that if you, our audience, are managing entities overseas, you're definitely hopefully familiar with this. I will say that I have questions come from people on a daily basis. The fact of the matter is that the world has changed significantly. Privacy acts, GDPR, data leaks, there has been such significant change not just in the way you have to protect yourself and your entities and your organization, but the way that you report to governments, agencies, and so on.
There are a couple of pieces that we're going to highlight here today. And I would encourage everybody, even if you want to take a screenshot of the shot and then take a look via some search engines later, do a little bit of research, understand the data leaks. The Panama Papers of 2016, the biggest data leak in history of the world. And then subsequently, the Paradise Papers. These were huge pieces of information that were not publicly available released, and released in a malicious fashion.
Because of those data leaks, it became evident to the world in terms of business that things had to change, the way privacy was seen, the way data was held in country. Everybody here on this call is familiar with the phrase GDPR and the governance around that from a European standard model.
Not everybody that I speak with is familiar with some of the work and the collection of due diligence around anti-money laundering, or commonly the phrase is AML, and counter-terrorism types of information. Oftentimes, this is surprising for American companies.
And I will say that I would expect our audience to be largely American. Certainly, if you're outside of the United States, you're probably well in tune with us. As Americans, there is a bit at this point time of a relaxed attitude around data. You can form a company still in the United States with almost complete anonymity very quickly, very cost effectively. Outside of the United States, it's not the same. I promise you if you try to open up a bank account somewhere, if you try to form a company in some jurisdiction outside of the United States, there are requests for data that as Americans we're not used to providing.
We, CSC, are a Delaware company through and through, but we're truly a global company now. And we're here to try to Americanize global corporate governance and make things as simple as possible. But at the end of the day, there's going to be some common data to be requested.
In terms of KYC due diligence, your "know your customer" due diligence, organizations like CSC are required to understand our client base and to make sure that, frankly, you're doing the right things, you're funded the right way, and so on. And there are going to be some requests for data that may seem out of the norm. I encourage everybody to bring yourself up to speed.
There are also some filings that correspond with us this new change in the landscape. They're UBO filings, or Ultimate Beneficial Ownership filings, in many jurisdictions around the world. It's something that I expect to see come to prominence within the United States probably over the next decade or so. We're already seeing some paths being made in this regard in California, and I expect things to change over the near future.
If you have any questions about some of the changes that we're hinting at here, feel free to reach out to your customer solutions manager at CSC or simply ask for customer service and we'd be happy to navigate you in the right direction. I'm happy to jump on a call. We can talk a little bit about some of those nuances that you see from country to country. And again, these are new changes.
If you find yourself struggling with any of these things, or maybe even asking questions, if you are managing companies outside the United States, and you're not familiar with UBO filings, if you're not up to speed on GDPR, please know that CSC is here to assist.
Of course, when it comes to GDPR, CSC is fully GDPR compliant. And we're here to work within the confines of law, not just here in the United States, but certainly globally around the world as well.
Now moving off of some of those changes, of course, that will be an overall theme throughout our presentation today. Andrea, why don't you talk us through a little bit about some of the challenges of managing a multinational entity portfolio?
Andrea: Absolutely, John. And, you know, there are just so many. Throughout our various conversations with our clients and prospective customers, John and I regularly hear some of the recurring themes in our list of challenges that companies are facing when it comes to managing their global portfolios.
I think one of the biggest challenges that our clients deal with is expertise, so a really lack of expertise. Clients approach CSC for help with managing their global portfolios because there are so many nuances from jurisdiction to jurisdiction and countries are so different.
And these rules vary so greatly from U.S. law and what most of us are familiar with domestically here in the United States. It can be so difficult to understand those nuances and the requirements necessary to conduct business in other countries.
I think it's really easy to feel like international entities can and should be handled similarly to the way that we manage our corporate secretarial requirements in the United States. But that's really just not the case. Managing your global entities, it's really not as straightforward as appointing a Registered Agent or filing your reports throughout the year. It's really important to have an expert or a team of experts in place that can assist you with understanding the complexities of all of these jurisdictional needs in order to have that peace of mind that everything is being handled appropriately.
And John, just like you said, understanding that corporate landscape, having someone like CSC on your side who really understands those changes and not having our clients be dependent upon staying on top of those changes, can really help to provide some reassurance in this global market.
Another challenge that we see is logistics. We often hear about the struggle of coordinating multiple projects with multiple vendors around the world, the impact that this have on your time and your resources.
Typically, your vendors are located in other countries. Oftentimes, they're in inconvenient time zone for you. Added to that is the struggle for you to receive invoices, perhaps in different currencies. And of course, currencies may fluctuate throughout the course of business. Even more frustrating can be the confusion of adding language barriers to your conversations if your vendors don't speak English.
With all of these logistical challenges, it's very easy to become overburdened by the process of what's required, what's not required, which aspects have been handled or completed by your partners.
And really, we hear it all the time in our daily discussions with people who are considering our services. Many begin their conversation with, "Well, you know, I think that our stuff is being handled and that our vendors are taking care of these responsibilities," or, "I hope so." Hope and a prayer is really not going to keep us safe in this fluctuating market, in this very complex market.
Also, it's very difficult to understand costs. In addition to those fluctuating currencies that we mentioned, creating a budget or understanding the current spend for your services associated with managing your global entities can be very hard.
Most times, we're dealing with law firms directly, and with the case of law firms in particular, you're at the mercy of hourly rates. You may have potentially unclear invoices that you're receiving for services rendered. It can be tough to match up the costs for your entities or the projects that your law firm partners are handling, and really challenging to discern the difference between fees that are tied to a project or the direct management of entities and fees that might be charged by the law firm for some unrelated service that has nothing to do with your global portfolio.
Very unfortunately, John and I also speak with companies that have received surprise invoices from their vendors for very standard or routine filings and services. No one wants to be receiving any of these unexpected fees above and beyond what was originally discussed with vendors. The last thing you need is to pile on extra costs over top of what you were originally anticipating.
And lastly on our list here is data management. It's important to really have a system in place that meets all of your needs, and allows you to centrally see and manage all of your data and documents for your entities around the globe. It's even more important that you're able to feel confident in that system, to be sure that the information is reliable or up to date.
And it's oftentimes challenging to really achieve that kind of peace of mind with your data capture. Excel spreadsheets and network shared drives, they can help to ease the burden a bit, and it's very common to see those types of resources in place in this type of market. But those processes are still very manual. They can easily become outdated, the data can be incorrect, or there are other pressing responsibilities that also need attention, which makes spending time updating those resources just a great challenge.
Companies also tell John and me that they're heavily dependent on information from their outside vendors. They rely on that communication for those partners to provide the information or the documents as a prerequisite to getting these manual systems updated.
And if you're not getting that communication or if that communication isn't received from your partners, then the system completely breaks down. And despite your best efforts to keep your records accurate and up to date, you'll still see that the system is not functioning well and that your data management system is failing.
John: For those in our audience who are already managing a portfolio of entities outside of the United States, I'm sure all four of these bullet points resonate with you. And I would venture to bet that you probably have some other challenges as well. Of course, this is a high-level overview of some of these challenges.
I really am excited to not only understand the needs of our clients, which is a big part of what we do, but now we're happy to talk about the solution that CSC brings to the table, the CSC solution that we call Global Subsidiary Management, or commonly you'll hear us reference internally as GSM. So let's talk a little bit about what Global Subsidiary Management is through CSC.
The first bullet on this slide really sums it up perfectly. GSM is centralization and simplification. We're here to simplify your processes. Of course, this is a very dynamic environment. It's very difficult to make this a simple process, but that's what we're able to do.
And we're able to take almost an American approach. Not in the fact that we're going to handle things as if they're American companies, because that's certainly not the case. We're going to be very specific with the needs of your entities in the specific jurisdictions. But we're going to centralize your workflows similar to the way we do things here with your domestic services with CSC. We're here to give you one point of contact, we're here to centralize those workflows, and truly simplify your efforts.
There's no magic wand, there's no way to make that workload go away, but we're here to make it much easier for you.
When we talk about centralization, I really talked about centralization in two different capacities. CSC truly revolutionized this workspace. For years and years and years, for decades and decades and decades, it really was simply managing your international companies through local law firms. And over the last decade or so, the world's gotten a bit smaller with digitalization and electronics. And there have been capabilities to work oftentimes with a central provider or maybe a couple of different regional central providers.
But usually, when we talk about this space, it's either technology or service. You can work with one software provider to provide technology for managing data, and oftentimes a couple of different solutions for the service aspect, the corporate secretarial functions.
CSC has revolutionized this. We're here to handle centralization in those two different facets, both the centralization of your workflows for your corporate secretarial requirements around the world and, very importantly, the automation of data and document capture in a centralized technology, CSC Entity Management, which Andrea is going to show us in a little while.
GSM truly is a partnership. I even hate to say the word outsourcing. I don't think it's indicative of what we do. We're here to partner with you and act as an extension of your team. We're here to work as part of your team, really as the quarterback of your corporate secretarial efforts around the world.
You're going to feel a kinship with your project manager here in Wilmington, Delaware, or out of our hubs, out of our London office and our Hong Kong office around the world. Global coverage, but, again, that feel of a partnership to conquer the corporate secretarial needs.
GSM truly is flexible to meet your needs. Not only do our clients have different needs from portfolio to portfolio, but even within your portfolio, you're going to bring different needs to us.
There are going to be jurisdictions where you have strong teams in place and can internalize some functions. And there are going to be locations where you might not even be able to fulfill a residency requirement. And CSC is here to listen to your needs and to formulate a flexible plan and a centralized plan to do this in a smart way.
GSM truly is comprehensive. We're not going to limit our services to the bare bone minimum in a given jurisdiction. We're going to understand the requirements of the jurisdiction, of course very different from jurisdiction to jurisdiction, and put together a comprehensive solution that not only meets the needs of the jurisdiction but more importantly meet the needs of our clients.
GSM is dynamic. I just referred to that in the last statement. We're here to understand your needs. We're here to understand the changes from jurisdiction to jurisdiction. And very importantly, we're here to understand those dynamic changes over time. So when a new company's act is ratified or new regulation hits the market, we're here to understand and be flexible to meet those ever-changing dynamic needs.
GSM truly is efficient. I think this is the best adjective on the page here. We're efficient in a couple of different manners. I think the most impressive and impactful efficiency that we bring is the efficiencies of workflow.
The simple fact is if you're duplicating your efforts across 50 countries with 80 entities, we're here to eliminate that duplication. We're here to allow you to work together with us once, have one conduit of information instead of, in that case, 50 conduits of information, and to truly make efficient your workflows.
But we're also very efficient when it comes to the data and document capture through our award-winning technology. And very importantly, you're going to see cost efficiencies that you would not see if you were working with different vendors in different jurisdictions.
The cost effective business of our service is compounded by the number of entities that you're managing. We're going to take a holistic look at costs as opposed to a one-off look in different jurisdictions.
Ultimately, CSC is a marriage of our time-tested service and our award-winning technology. We're here to take care of you the way we've been taking care of our client base for 120 years. We're here, again, to partner with you, to make sure that we're successful harmoniously together. And we're here to automate the data and document capture in our award-winning technology, CSC Entity Management.
This truly changes the way you can manage your entities outside of the United States, and both inside the United States as well. CSC will take a global approach to the collection of this data and documentation, giving you a central repository of true data.
Andrea: Absolutely. I think the first thing that we do is what we call the corporate health check. Not an uncommon term for the global market, so you may already have some familiarity with it, but we'll talk about this briefly now to get a better understanding with what CSC completes with regard to our first step in our relationship together. And our goal is really to ease that discomfort.
The first thing that we do when we enter in our relationship together with our clients is this corporate health check, which is a comprehensive audit of your global entities.
And this really helps us to do three things here. The first function is going to help us understand the current entity status. How comfortable are you and why are you comfortable or not comfortable in that regard?
Through a review of the data from the public registry and country, CSC is going to understand what has or has not been completed for these entities. We will identify deficiencies within a global portfolio according to the Business Registry that need to be addressed. And then we're going to assist our clients with fixing those things.
Some of the common deficiencies that we uncover through this corporate health check include things like missed annual general meetings, or missed filings, or other general filings, or maybe just a filing that wasn't put in place with the Business Registry. Perhaps an incorrect number of directors in place for your entities or incorrect addresses, or just other miscellaneous changes that may have just slipped through the cracks in terms of updating the Business Registry with those informational pieces. And it's very easy for CSC to assist with fixing those things.
The second function that the corporate health check does for us is uncover the current and correct data, such as officer or director slates, powers of attorney, jurisdictional IDs, address information, share capital and ownership. And really giving a complete understanding of the filing responsibilities and the deadlines, those jurisdictional nuances of what's required for each entity by each jurisdiction.
After the corporate health check is complete, your dedicated project manager here in Wilmington, Delaware, is going to review those results with you. And if deficiencies do exist in your portfolio, we're going to sit with you to develop a plan for remediation and assist you with bringing those entities back into good corporate health.
The third function of the corporate health check includes the migration of the vetted data, all of the requirements, all of the dates and deadlines, all of that information is migrated into CSC's Entity Management platform.
Our proprietary technology solution does capture your current entity information and it provides our clients with that visibility and complete transparency across their organization in this one very secure, easily accessible central repository. The data forms the foundation of our core service of ongoing entity management, which we refer to as the Annual Compliance Support services.
John: Annual compliance report truly is our core offering. The corporate health check is vital to onboarding entities, to bringing your entities into a positive status of corporate health, and of course to populating the initial set of data within our technology, CSC Entity Management.
But then moving forward from here, CSC's Annual Compliance Support offering is what we've been discussing, this centralized approach to corporate secretarial governance around the world.
What it really entails is a very inclusive service that is flexible from jurisdiction to jurisdiction. So everything that I say today will be fairly broad, but please understand that it's much different managing a Brazilian company than a British company than a Japanese company. So you're going to see differences in terms of what is required in jurisdiction and, of course, what we include in this highly inclusive service, Annual Compliance Support. Truly a solutions-oriented service.
We're not here only to tell you what required in country and to fulfill those needs, but we're here to understand the challenges that your unique organizations bring to the table and to formulate the proper solution.
Annual Compliance Support truly is dynamic. And most importantly, we're proactively managing corporate secretarial governance. It's all predicated on centralization. I'm going to speak from an American's point of view, but please understand that we understand the needs of business and you might have unique circumstances or be managed outside of the United States. And that's fine.
CSC is a global organization. We have boots on the ground in over 140 countries around the world where we can support this service. We have hubs for this service not only out of our Wilmington, Delaware, headquarters, but out of our London office and our Hong Kong office, various other offices throughout Asia, and Europe, and of course a strong network of partners, law firms, trust companies, and global experts through whom we work.
We're here to centralize your corporate secretarial governance through a single point of contact here at CSC. And I say single point of contact loosely. There's actually a team of people who will support your efforts so there's no breakdown or single point of failure ever.
This project manager will be really a close business ally of yours, working together with you, somebody with whom you'll be on a first name basis, here to proactively manage your organization's needs around the world through regularly scheduled contact.
Now, of course, feel free to reach out to this person by phone or by email at any point in time. Unlike a law firm, there are no costs for contact. But we're also going to really take the reins in the corporate secretarial efforts around the world, making you aware of what's coming up over the next 30, 60, and 90 days.
Annual Compliance Support is here to include all of the necessities of the jurisdiction, which most commonly are going to include maintenance of your minute books and shareholder registers. We're going to do everything digitally in our technology. And then in jurisdictions where we're acting in a domicile capacity, we'll also be holding physical documents as well in country. We'll talk more about that in a moment.
Very importantly, we're going to take on the preparation and subsequent filings of annual general meeting documentation. And our services are flexible, again. So in jurisdictions where there are quarterly requirements, such as in India or Spain if you have a board of directors, we're going to handle those quarterly needs. In jurisdictions where there's no annual meeting requirement, our inclusions are going to ebb in the other direction.
So it's about understanding your needs and understanding jurisdictional requirements around general meetings and drafting the supporting documents.
Everything we draft, and this is a highlight of our services, is drafted in dual language. There is English support for everything that we produce. And there is no extra cost for that. That's a basic inclusion of our services.
So please know that if you have historically seen challenges just even looking through legacy documents because they're in Asian characters or in German, we're going to produce documents in dual language with this American support.
We're here to handle the annual filings better in the given jurisdictions, and of course, these are different from place to place. In the United Kingdom, we're going to handle your confirmation statement and your annual account filings, and annual account filings in many jurisdictions around the world. If the filings are Statements of Information, CSC will produce the document for you, file them, and subsequently update the information in our Entity Management solution.
If it is a financial document, your accountants or CPAs will continue to produce the document, but we're going to handle the filing that commonly is missed. This is one of the most common deficiencies that we see through the corporate health check, is the misunderstanding of some documents that are required to be filed in country.
In many jurisdictions . . . you see here the bullet for Registered Office Provision. And I want to make it clear that Registered Office . . . for those Americans on the call, we want to make it clear that the Registered Office needs outside of the United States are really not the same as the Registered Agent provision that we provide historically here at CSC in the United States.
In most jurisdictions outside of the U.S., if you have your own physical location, you really should be using your own location as your registered office address. And this is commonly thought of as your principal place of business and where physical documents in many jurisdictions are required to be held.
But in a handful of jurisdictions, the common way of business is to utilize your corporate secretarial partner in this capacity. And in those cases, instead of charging you extra for a service that really should be understood, we're here to include it as a standard inclusion.
So we include Registered Office in jurisdictions such as Canada, the United Kingdom, Ireland, Hong Kong, Singapore, Australia, Cayman Islands and a number of other island jurisdictions, and quite a few others. We'll make it very clear where that is the common need, and where we include it.
That's not to say that CSC can't act in this capacity in other jurisdictions. If you have a unique need, for instance, if in Germany, you only have a sales staff, you don't have a location that you feel confident can be utilized as your registered office address, CSC certainly can fulfill those needs the majority of jurisdictions around the world.
It's not listed here, but very similarly, CSC can act in a residency requirement capacity. Where you have local director requirements, CSC can fulfill those.
Again, the best course of action and the most common course of action is to fulfill those requirements internally with your own people. But where you're not able to do that, CSC certainly can.
Another highlight of the Annual Compliance Support service is that we're going to automate all of the data that we generate and all of the documents that we generate into the capture within CSC Entity Management. In just a moment, Andrea is going to walk us through a quick demonstration of that technology.
That certainly can't be understated. One of the biggest challenges that we see from companies coming our way is that they don't have a great or trustworthy support system for data. And even if you've paid big dollars for some of the most common entity management solutions on the market, the bottom line is that technology is only as strong as the data within it.
And if that's not being maintained properly, if you're receiving emails from lots of vendors and law firms now with documents attached, first of all, I would question the security of that method. And secondly, do you have time to manage this database? In the case of CSC's global subsidiary management offering, we're here to automate that database so you have that trustworthy data at all times.
Very importantly, again, when it comes to the theme of centralization, we're here to give you a U.S.-based support team. So there are so many competitors on the market who are talking about centralization, not able to handle the number of jurisdictions that CSC can, and then will support you internationally, will support you out of their office in the Philippines or out of their office in wherever it may be.
We're here for our American-based clientele to give you American-based support team. And this is not a third-party type of relationship. This is a CSC work product where your support staff here and out of Wilmington, Delaware, is critical to the management of these entities around the world.
Last thing I'll mention here, and this directly correlates to some of the budgeting challenges that we commonly see, is we're here to provide a flat-rate pricing model in U.S. dollars. So gone are the day of being billed in yen and euro and pound sterling, and try to figure out the hourly spend, try to understand where the budget comes from. We're here to make it very simple. You're going to have a simple flat-rate budget for these types of day-to-day corporate secretarial functions.
In closing with exception, Annual Compliance Support is about tying together all of your prescribed needs, everything that you understand is a necessity in the jurisdictions and tying it together to make it easy through central management and through flat-rate costs.
Andrea: The last section here to talk about our global corporate services besides the global LEIs is the additional needs that CSC can fulfill through what we call international transactions.
Outside of the scope of the annual compliance services that John just talked about, CSC can assist you with your other endeavors for your global entities. You do have needs that may arise that are separate from those day-to-day needs of managing your daily business for your global entities. This includes projects like officer and director changes, ad hoc resolution drafts, transfer of share capital, document retrieval, research projects, formations, liquidation support, and more types of projects.
When these changes occur within your global portfolio, CSC can help to simplify these projects using the same streamlined and centralized approach that sets us apart from the competition for your global portfolios.
I think one of our favorite examples that we like to use to illustrate this point is a very common director change project that we feel really resonates with many of you and probably will resonate with you on this webinar today.
Let's say, for example, that one of your directors is retiring, and this person happens to be a director for many different entities around the world in your company. This is a frequent occurrence that John and I hear from our clients or prospective clients.
And commonly, people will tell us, "Well, what we used to do is we reach out to our law firm in Brazil, we reach out to the other firm in Singapore, we talked to our vendor in Australia," so on and so forth, and then they quickly find themselves buried and juggling 20 different projects in 20 different companies across the world.
Wouldn't it be so much easier for you to just simplify your call or your email to your project manager in Delaware and say, "Hey, Susan retired. What do we need to do to get this project rolling?" And from there, our team is going to assess the scope of the project with you. We'll evaluate the best course of action, and we'll really customize a perfect solution for you so that rather than having to manage 20 different projects in 20 different countries, you're only managing one project with one point of contact here with CSC.
We are spearheading the efforts for you and we are managing and executing the change on your behalf. We have the knowledge and expertise here to understand where we can mitigate your costs versus maybe some other jurisdictions where we need to be more expeditious to avoid penalties or fees.
We would know, for example, that if we needed to execute a director change in Australia and we had an upcoming general meeting in the next 30 days, we could just fold that change into the meeting to avoid those extraordinary measures and the additional costs.
But for jurisdictions like Hong Kong or Singapore, where we need to make those changes very quickly within the requisite 15 days or 30 days respectively, we'd be able to execute those very quickly.
And much like our Annual Compliance Support services, we do provide flat rate pricing for these ad hoc transactional services. We always provide that budget certainty.
And the work that's completed by CSC on your behalf, of course, does automatically flow into the technology, CSC Entity Management solution, so that, again, you have the data and the documents that are available to you in the central repository in real time as those changes occur.
John: Before Andrea takes us through a quick tour of our technology, I want to briefly touch on the concept of Global Legal Entity Identifiers, or GLEIs. CSC has the ability and offers a service to both file new GLEI fillings and then manage a portfolio of GLEIs moving forward in terms of annual renewal.
For those of you who aren't familiar with this concept, in a post-Enron world, in a time when banks when lending money almost haphazardly, we can say, and there was a financial crash, it was oftentimes a misunderstanding of where that money was being lent. It was found that, in many cases, there were redundancies in terms of borrowing and lending. And this concept was built through that challenge.
The concept of GLEIs . . . there's a global clearinghouse that offers the ability to file essentially a thumbprint for your business. If you're opening banking or in the banking industry, you certainly are familiar with this concept and probably have to register.
We're not suggesting that you need to have a Global Legal Entity Identifier for every one of your organizations. But very commonly, if you're a global business, you will be required to have one to open bank accounts and identify your organization.
If you need assistance with the initial application for GLEIs or the ongoing renewals, this is a service that CSC can provide. It's a very cost effective solution, very simple, and it's very much in line with the other renewal services that CSC offers. So feel free to reach out to a member our support team to assist.