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Compliance Health Checks: Choosing the Right Solution for Your Organization
Entity compliance inventory isn’t a one-size-fits-all solution.
Organizations operating across multiple jurisdictions face various levels of complexity in maintaining their legal standing and meeting regulatory requirements.
Some may need basic verification of compliance status, while others require comprehensive analysis of jurisdiction-specific obligations and detailed remedial action plans.
In response to evolving regulatory requirements, Mercator® by Citco (Mercator) has developed three distinct Compliance Health Check services.
Each service level is designed to meet different organizational needs, from standard verification to in-depth analysis, allowing you to select the most appropriate solution for your current circumstances.
Choose Your Level of Review
1. Standard Health Check
Perfect for: Regular compliance monitoring and basic legal standing verification.
Ideal for organizations seeking routine verification of their compliance status.
What’s included:
- Review of records in respective jurisdictions
- Summary of available corporate data
- Basic compliance status verification
- Entity management system audit
- Standard remedial actions identification
2. Focused Health Check
Perfect for: Targeted reviews of specific compliance areas.
Ideal for companies experiencing challenges in specific jurisdictions or implementing new regulatory requirements in selected areas of operation.
e.g. A multinational organization operating in Asia recently discovered inconsistencies in their financial statement filing requirements across different jurisdictions. Rather than conducting a full extended review, they opted for a Focused Health Check that specifically examined financial statement submission protocols, signature requirements, and filing deadlines across their Asian entities. This targeted approach provided the specific insights needed while optimizing time and resources
What’s included:
- Priority compliance area review
- Concentrated analysis
- Targeted recommendations
- Specific remedial actions
- Key risk area assessment
3. Extended Health Check
Perfect for: Comprehensive compliance oversight and detailed jurisdictional analysis needed by global organizations managing complex, multi-jurisdictional operations.
Particularly suitable for companies involved in mergers and acquisitions, those expanding into new markets, or entities requiring thorough evaluation of their entire compliance framework.
What’s included:
- All standard health check elements, plus:
- E-signature applicability assessment AND/OR
- Letterhead requirement review AND/OR
- Public accessibility analysis of registrable information AND/OR
- Financial statement requirements:
- Signature visibility requirements
- Approval signing order
- Format specifications for filing (i.e. electronic and paper filing availability review)
- Detailed remedial action plans
Key Benefits
Each service level offers:
✓ Standardized reporting for cross-organizational use
✓ Clear remedial actions
✓ Periodic review options with updated information
✓ Optimal project pricing
✓ Tailored to specific organizational needs
Implementation Process
For all service levels, we follow a structured approach:
| Process Stage | Key Activities |
|---|---|
| 1. Scoping and Consultation | • Understanding your specific requirements • Identifying key areas for review • Defining project timeline |
| 2. Comprehensive Assessment | • Review of entity records • Analysis of compliance requirements • Evaluation of current standing |
| 3. Detailed Reporting | • Clear presentation of findings • Specific recommendations • Action items identified |
| 4. Implementation Support | • Guidance on remedial actions • Assistance with remediation • Ongoing support for maintaining compliance |
When to Consider a Compliance Health Check
Recommended review frequency:
| Category | Application |
|---|---|
| Standard Health Check | • Annual review • Change in service provider • New statutory requirements |
| Focused Health Check | • Specific compliance concerns • Regulatory changes • Risk area identification |
| Extended Health Check | • Multi-jurisdictional expansion • Corporate restructuring • Governance framework updates • Post-merger or acquisition • Complex regulatory changes |
Making Your Choice
When selecting your Health Check level, consider:
- Number of jurisdictions involved
- Complexity of operations
- Specific compliance concerns
- Budget requirements
- Timing needs
- Regulatory environment
- Organizational changes
The appropriate Compliance Health Check should align with your organization’s specific needs while providing the necessary level of insight and analysis for effective entity management.
For guidance on selecting the right Compliance Health Check for your organization, contact mercator@citco.com.
Jurate Kisieliene
Head of Client Service, Mercator by Citco, Citco Mercator UAB
