Correspondence with Authorities

What is Correspondence with Authorities?

Correspondence with authorities is the record of all information exchanges (written and electronic) between your company and legal authorities and/or regulators across jurisdictions.

Correspondence with authorities records any communication in the form of letters, notices, reports and filings, between your company and all local or global authorities and regulators, except IP and tax authorities.

It includes:

• Regulatory Filings: Correspondence related to any regulation or reporting requirements (eg. annual or quarterly financial reports and environmental compliance)
• Third-Party Complaints: Correspondence related to any complaints by third-parties to a particular regulator
• Company Audits: Correspondence related to the audits conducted by regulatory bodies
• Regulator Investigations: Correspondence related to any investigation into your company’s business activities
• Company Complaints: Correspondence related to any complaints made by your company to a regulator

Why is Correspondence with Authorities important for business today?

A record of correspondence with authorities enables your company to:

• Determine the progress and status of regulatory filings, investigations, audits and complaints
• Gain visibility into the requirements and terms and conditions related to regulatory compliance across jurisdictions
• Estimate the financial expenses related to regulatory compliance and penalties for non- compliance
• Assess the changes in regulations that impact your operational and financial performance
• Mitigate the legal and operational risks related to any regulatory non-compliance across jurisdictions
• Evaluate the time required to comply with regulatory filings, audits and investigations
• Take timely action on any investigation or complaint; and communicate those actions effectively to the respective business divisions

Why is Correspondence with Authorities important for an event tomorrow?

A record of correspondence with authorities is important for an event tomorrow, as it helps:

• Assess the frequency and nature of complaints and investigations related to your company and their impact on your business
• Evaluate various regulations and audits that your company has to comply with across jurisdictions
• Assess the financial compensation that your company is entitled to receive or outstanding penalties to settle
• Evaluate your company’s capability to manage and comply with various regulations

Pros of addressing Correspondence with Authorities

• Formulation and implementation of rigorous internal processes to manage investigations, filings, complaints and audits more effectively
• Compliance with regulations stipulated by legal authorities across jurisdictions
• Accurate budgeting for expenses associated with regulatory compliance or third-party complaints
• Transparency between legal authorities and your company
• Timely resolution of disputes with a third party or a regulator
• Refer to any past complaints and effective resolutions mechanism used
• Detailed documentary evidence to mitigate future legal risks

Cons of not addressing this topic

• Inability to track new regulations and their impact on your business
• Limitations on business growth due to non- compliance with regulations
• Increase in regulatory risks due to lack of visibility on the regulatory complaints, across jurisdictions
• Inability to track the progress and status of regulatory compliance processes
• Inconsistency in responses and actions across jurisdictions.