Adapting to Changes: How FRT Stays Ahead of the Curve

Emily Fortin
Emily Fortin
October 19, 2023

Legal and Regulatory Changes: Impacts and Responses

Navigating legal and regulatory changes is a critical challenge for any global company.  In this blog, we’ll share how Financial Recovery Technologies (FRT) adapts to changes worldwide and ensures our clients receive the most comprehensive and streamlined recovery services.

 

Keeping Clients Informed

When regulatory changes in a country alter the risk profile and participation burdens for recovery efforts, FRT is proactive in informing clients. We accomplish this with articles, webinars, and updated case collateral. For governance clients, our monthly calls cover legal updates and trends.

Example 1: New Recovery Strategy in the UK

During 2022, FRT noticed a shift in risk dynamics for UK recovery efforts.  Previously, efforts typically involved group opt-in efforts. However, case organizers began using a new strategy involving representative suits under Civil Procedure Rule 19.8.  If accepted by courts, these new efforts will decrease the risks and burdens on claimants and improve the risk profile for this jurisdiction.  FRT responded by educating clients and reducing the recommended minimum loss threshold for joining matters using the new strategy.  Client registrations increased more than twofold.

Example 2: Innovative Claim Preservation Strategies in the US

FRT researches and incorporates innovative strategies into its service offerings.  For opt-out suits, we have always encouraged clients to enter into tolling agreements to preserve claims against time expiration.  When we observed courts permitting limited intervention motions, we incorporated them into our recommended claim preservation strategies, ensuring clients have more ways to potentially maximize their recoveries without the need for suit.

 

Adapting Operational Workflows

Regulatory changes can impact internal operational workflows. Whenever possible, we implement processes to minimize changes in the client experience.

Example 1: Australia – Adaptive Claim Submission

Amidst regulatory changes in Australia, FRT reoriented its non-US passive participation service to submit claims just before court-ordered pre-trial mediations, rather than at the start of proceedings. This saved clients significant time and effort, as they no longer needed to choose between competing case organizers, spend as much time analyzing the efforts, or risk joining an organizer’s actions that may not continue.  This process change also insulated clients from the “noise” of political reforms that did not impact the passive filing process.

Example 2: Adapting to SEC Requirements

The SEC recently implemented more rigorous Fair Fund submission requirements that created operational challenges for FRT and its clients. Some competitors stopped servicing Fair Funds, while others required upfront payments from their clients. By contrast, FRT adapted its workflows to minimize the impact on clients. We worked to better predict claim audits, extend response deadlines, and create remittance processes compliant with SEC requirements while still enabling us to service clients within their existing agreements.

 

Innovation, Advocacy, and Thought Leadership

FRT has a reputation for thought leadership and innovation in the recovery space. Our proactive approaches impact the global recovery landscape in ways beneficial to our clients.

Our internal legal team actively advocates for investor interests, including submitting court affidavits in cases involving important legal issues.  It also prepares and submits position papers for government inquiries, comment letters to the SEC, authors articles and chapters in legal publications, and speaks regularly on relevant recovery topics.

Unlike many of our competitors, FRT doesn’t merely react to regulatory changes. We proactively negotiate with case organizers on behalf of our clients – improving funding terms, registration processes, financial terms, and contract provisions.

 

Conclusion

In a world of constant legal and regulatory change, FRT is proactive, adapting its efforts and services in ways that keep our clients’ interests at the forefront. Our dedication to thought leadership and innovation ensures we always provide top-notch services and ensure clients maximize their recoveries, no matter where in the world they occur.

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Founded in 2008, Financial Recovery Technologies (FRT) is a leading technology-based services firm that helps the investment community identify eligibility, file claims and collect funds made available in securities and other class action settlements. Offering the most comprehensive range of claim filing and monitoring services available, we provide best-in-class eligibility analysis, disbursement auditing and client reporting, and deliver the highest level of accuracy, accountability and transparency available. For more information, go to www.frtservices.com.

 

This communication and the content found by following any link herein are being provided to you by Financial Recovery Technologies (FRT) for informational purposes only and does not constitute advice. All material presented herein is believed to be reliable but FRT makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Opinions expressed in this communication may change without prior notice. Firms should always seek legal and financial advice specific to their unique situation and objectives.