In a world of big data and automation, many financial institutions and legal advisors still spend an extraordinary amount of time creating the legal documentation for new financial instruments and their ongoing surveillance. RiskSpan’s Contract and Disclosure Tool, reduces the risk, time, and expenses associated with the process (patent pending).
The Tool automates the generation of a prospectus supplement, the content of which is a complex combination of static and dynamic legal language, data, tables, and images. Based on a predefined set of highly customizable rules and templates, the application dynamically converts deal-specific information from raw data files and tables into a legally compliant disclosure document. Authorized personnel can upload the data files onto the Tool’s intuitive UI, with total control and transparency over document versions and manual content changes which are automatically tracked, and which users can review, approve, or reject before finalizing the document for publication.
While there is no substitute for the legal and financial expertise of the attorneys and modelers in the financial security space, the Tool allows these professionals to make the most of their time. Rather than manually creating documentation from spreadsheets, data files, and multiple templates, users begin their analysis with a complete, pre-generated English-language document. If manual changes are further required, users can update the input data files and re-create a new document or directly and seamlessly edit the text using the application’s editing screen, which also allows users to easily visualize the changes between the versions, by highlighting content that was updated, added or deleted.
Automating the generation of legal content quantitatively decreases fees, increases productivity, and results in a much quicker turnaround, freeing up time to accommodate other business activities. The Tool’s superior computing power can turn around initial draft versions of the disclosure documents in just a few seconds!
Another feature that is difficult to overlook is the reduction of risk. It is very important that legal documentations accurately and completely reflect all of a deal’s terms and conditions. The Tool allows the legal and financial staff to focus on the deal structure, rather than manually identifying and duplicating content from prior deal templates, thereby minimizing the risks of human data errors.
The application accomplishes this in several ways. First, directly translating existing files that are used in other modeling functions ensures that model and documentation data remains aligned. Second, the static language is generated in accordance with the deal structure, leaving little room for variation. Third, a set of built-in quality control tools alerts users to missing files and data, inconsistent and erroneous structures, incorrect principal and interest payment rules, and unusual structures that require further review. Fourth, the tool keeps track of content updates and changes, and allows for version control, so users can track and review changes in document versions.
Introducing new technologies into nuanced processes can be problematic. Certainly, developing legal documents is not a one-size-fits-all proposition. Every document has its own format, criteria and legal requirements. RiskSpan’s Contract and Disclosure Tool is highly customizable to varying financial instruments and deal structures with exceptional focus on accurate legal content, quality control, and aesthetics of the final product, freeing up premium time and resources for other priorities.