The board at Arcus IP manage 13 different entities. On top of a complex organisational structure, they usually hold more than 100 meetings in a year, which results in a lot of people, information and resources to administer.
Mr Cremonesi, Partner at Arcus IP, explained that security, auditability and investor confidence were the main areas where they felt there were opportunities to improve.
The company acknowledged the need, firstly, for a tool to share information before meetings and secondly to make sure information is held securely. “The way the data is physically held is absolutely crucial to the company,” said Mr Cremonesi. This requirement is evidenced by a recent CSSF circular which proposes that if board/strategic documentation is to be managed by non-PSF accredited third-party firm then due diligence checks should be undertaken.
Previously the board exchanged documents via email and organised appointments in Microsoft Outlook, relying on the inbuilt security of those programs to safeguard confidential information. This approach is not suited to the evolving cyber security landscape and increased the risk of cyber-attacks. What they required was a solution with secure infrastructure. This would consist of bombproof data storage, secure data transfer and an application designed to support the safe distribution of documents.
Investment firms operate in a strict regulatory environment and are required to make a transparent historical record of decisions available to auditors. “It’s absolutely crucial to be able to show decisions were taken in Luxembourg, that we fully discussed each decision, and that all the managers and directors were properly informed,” Mr Cremonesi stated. “We need to retain a record of each decision, the underlying reason for the decision and details of the analyses performed.”
It is essential to their investors that they are able to administer the entities they manage, well. The company currently manages a total of 13 entities. Mr Cremonesi said, “Having properly managed, documented and organised meetings is a key to our success and is also an element which is recognised by our investors as fundamental to remove any risk and uncertainty around the management of their investment.” With more than 100 meetings per year the volume of documents was becoming burdensome and a solution was needed to manage all the information being produced.