Key team members:

Isabel Charraz, Country Legal Counsel

Jurisdictions your role covers: Portugal

What factors influence your team’s decision to use external legal services versus handling matters in-house, and what criteria are used to evaluate their performance?

When evaluating the performance of external legal providers, the legal team employs a structured set of criteria. These include cost-effectiveness, measured through alternative fee arrangements and adherence to budgets; outcome quality, assessed via success rates in litigation or transactional efficiency; responsiveness, gauged by turnaround times and communication; and alignment with corporate values. Expertise is paramount, when engaging external lawyers, highly specialised areas often necessitate the involvement of outside counsel with niche experience. Conversely, routine matters, such as standard contract reviews or employment law compliance, are typically managed internally for efficiency and cost control.

How does your team contribute to the overall business strategy of the company? Can you share an example of a recent legal-led initiative that had a significant impact?

Complex project focused on automating the generation and submission of regulatory reports required by the Bank of Portugal, ensuring full compliance with local banking supervision rules. Efficiency Gains, it has reduced reporting time by 70%, mitigated risk of human error, and enhanced the institution’s ability to adapt quickly to regulatory changes.

What are some of the biggest legal or regulatory challenges currently facing your industry, and how is your team preparing to address them?

The legal team plays a pivotal role in navigating new regulations, enabling the company to enter a regulated jurisdiction without compromising its growth timeline. The role of in-house legal counsel is to understand the pressure points, strategy and objectives of the business and effectively communicate to the management the risks and legal issues involved in any decision. This enables the management to make informed strategic choices within an acceptable legal risk profile.

The country counsel is skilled to reply to high expectation of senior management by anticipating key legal and regulatory matters and take a proactive role as a key member of the country senior management team responsible for managing overall country franchise locally, assuming a local leading project role in all the organisation strategic decisions involving key projects.

To be able to manage expectations and to be pragmatic, assertive, and hands-on are crucial to support the franchise in a highly effective way. The regulatory changes are the external factor that have a potential impact in the local business activity, requiring a constant and daily oversight of new requirements to keep ensuring business results. The legal implementation of such rules is a complex process, involving different support functions and businesses but regulatory compliance is crucial and a key priority for all organisations working in financial services and legal plays a key role.

Regulatory monitoring tools and partnerships with industry associations provide early insights into legislative changes. Internal training programs ensure that both legal and business teams remain apprised of emerging risks. Scenario planning and stress-testing of compliance protocols further prepare the organisation to respond swiftly to regulatory shifts.

Work as a partner, engage key stakeholders, focuses on understanding business needs and expectations, be pragmatic in any legal and regulatory development, provide a clear and consistent line of sight to all team members regarding the most critical work activities are the key component for an in-house counsel.