Rankings calculated on cost and time efficiencies;

USA closely followed by Australia and Singapore;

People’s Republic of China, UAE, and Turkey score less favourably.

New York, 31 August, 2022: Competitive pricing among law firms is one of the main reasons why the USA is the best jurisdiction among 170 worldwide for multinational companies to complete management/officer changes – according to the latest data compiled by Entity Portfolio Management (EPM) leader Mercator® by Citco (Mercator), in its Management/Officer Changes Special Report.

Management/officer changes include the appointment, removal, resignation or replacement of an officer, director or manager of an entity. They form an integral part of maintaining a healthy governance framework for a multinational’s global portfolio of entities. Failure to complete these activities properly can lead to companies facing regulatory fines and reputational risk.

The data shows that the USA is one of the cheapest jurisdictions for these changes due to a highly competitive legal sector, which significantly lowers the cost relative to other jurisdictions due to competitive market pricing. Bilingual documents are also not needed meaning there are no translation costs.

In addition, it is the fastest jurisdiction for completing management/officer changes – due to a range of factors including the country’s simple legal processes and lack of need to register changes with authorities, as well as online filings, counterparts and e-signatures.

Australia and Singapore follow close behind in terms of overall efficiency: their processes are relatively quick, however, management positions still need to be registered with authorities. Meanwhile, the People’s Republic of China, UAE, and Turkey are ranked as the most expensive jurisdictions due to more complex, lengthy and mandatory processes such as requiring changes of the Articles of Association or in-person notarizations and/or legalizations.

Overall, the data – which is sourced directly from Mercator’s EPM technology platform, Entica™ – found that jurisdictions are most cost- and time-efficient overall when:

  • No registration is required or there is simple online filing;
  • The change process is simple;
  • Signing in counterparts or via e-signatures is allowed;
  • No physical presence of the attendee is needed;
  • No notarizations or legalizations are needed;
  • No additional changes of other company documents (such as Articles of Association) are triggered by the change;
  • No translation of documents is required.

Kariem Abdellatif, Head of Mercator said: Multinationals are faced with the constant uphill task of reporting their management/officer changes and ensuring they remain compliant. Regulation and reporting requirements vary greatly across jurisdictions – with local nuances and often tight deadlines – and the risk of errors or non-compliance is severe.

“Therefore, we hope this data will assist multinationals by serving as a benchmark for their expenditure and efficiency – while supporting in-house counsels on evaluating the management of their entities. It will also provide internal stakeholders with the assurance that each entity is properly managed and compliant.”

To read the full report please visit: https://mercator.net/our-thinking/publications/management-officer-changes-epm-special-report/

The Management/Officer Change: Special Report is part of Mercator’s Entity Portfolio Management Report Series, providing direct insight on the cost and time to manage a global portfolio of entities, based on real-life data.

About Mercator® by Citco

The pioneer of Entity Portfolio Management (EPM), Mercator creates lasting partnerships with its clients to understand their individual needs and offer ease, efficiency and visibility through a clear layer of oversight. Mercator’s unrivalled knowledge of EPM and proprietary technology – Entica™ – is evolving the way companies view and manage their portfolio of entities, helping them navigate an increasingly complex regulatory environment.

As a part of the Citco group of companies (Citco), Mercator works closely with our Governance Services team – a bespoke, centralized service offering BPO accounting, Common Reporting Standard, directorships and payroll services, among others. The transparency offered by Mercator’s data insights combined with Governance Services’ proactive expertise means Citco can support any multinational corporation on all of your entity management needs.

About the Citco group of companies (Citco)

The Citco group of companies (Citco) is a network of independent companies worldwide. These companies are leading providers of asset-servicing solutions to the global alternative investment industry. With over $1.8 trillion in assets under administration and 9,800 staff deployed across 36 countries, Citco’s unique culture of innovation and client-driven solutions have provided Citco’s clients with a trusted partner for more than four decades.


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