About

Can you briefly explain how the legal team is structured?

Our team is structured with corporate, M&A, contracts and IP; litigation; governmental relations; and regulatory affairs. The four managers reports directly to Louangela Bianchini da Costa Colquhoun, who reports to the chief financial officer and investors relations.

How important have ‘soft skills’ or personal attributes outside of technical legal skill been to the team’s success?

In the legal area, a multidisciplinary background has become increasingly necessary. A broad understanding of the law is definitely important, but it is not enough nowadays, considering how the market has become dynamic and innovative. Having said that, it is mandatory that lawyers be updated with the latest news regarding the market and disruptive structures in the industry, considering that every day new issues arise and the lawyer cannot be outside of the discussions. It is also important that the in-house lawyer is an empathetic listener and has the ability to ask the right questions in order to understand the structures and, consequently, be able to provide the relevant legal opinion. Knowledge about new technologies also has become very important and necessary because the discussions go through IT issues, legal nature of new institutes (e.g. bitcoin, blockchain). Having a comprehensive knowledge of these new issues help in giving the right opinion or even developing a new thesis about the matter being discussed.

How can in-house legal teams be an integral part of their firm’s business?

In order to not be seen as a bureaucratic support area but as an effective part of the business, in-house legal teams have to have knowledge about marketing, operations, IT, finance and business administration. Lawyers today have a much more broad assessment in order to render opinions and be part of the company’s team. Understanding the company’s industry is key to success. Additionally, lawyers must improve its communication skills, in order to able to explain complex information to its clients in a clear and simple way (avoiding the “legalese”, which was so usual in the past). It is important to point out that we believe that the in-house legal team position in the company has been changing dramatically over the years and, therefore, in-house lawyers have been able to provide positive contribution to the company’s internal discussion, as an integral part of the business. This is already a reality in the Cielo routine.

Does the team use any “legal tech” products and do you find them a helpful management device?

Cielo is the biggest acquiring company in the Latin America, with more than 1.4 million active clients and 42% of market share. Due to its size and relevance, the litigation area has an important role in the business. In this scenario, Cielo’s legal department bought a system, which enhanced the controls of Cielo’s litigation area. The system monitors lawsuit status, provides tools for risk management, payment provisions, statistical analyses, improvement of the database, and shows the key roots of the lawsuits (in order for Cielo focus on the relevant reasons). The system also monitors lawsuits involving Cielo and the area can act even before the official summon. In addition, the system has real time dashboards and allows automation of some internal procedures, bringing assertiveness and agility to the ligation area. Finally, Cielo intends to enhance its controls and systems by using artificial intelligence alternatives and machine learning protocols.

Is diversity and inclusion as a matter of internal policy on the agenda at your company? How much influence do you, as an in-house legal team, have on the diversity and inclusion policies of your organisation?

Diversity and inclusion is part of an internal company policy. Cielo believes in the importance of creating diverse and inclusive environments for its professionals, being necessary to understand needs, remove barriers and stimulate performance. In this sense, Cielo also believes that diversity is in the hands of a person. Thus, it is possible to transform the corporate environment into a place where the differences are respected and of course, diversity leverages development. The legal department must validate all policies involving diversity and inclusion affairs; as well as the general counsel being a member of the diversity forum of the company. This forum is intended to promote absence of barriers and an environment where everybody (regardless race, sexual orientation, gender) can exercise and be his/her true personality.

In our last conversation, you mentioned that your team produces a daily company-wide publication covering relevant legal changes in the Brazilian jurisdiction applicable to the company’s business. Has this had an impact on the company’s business and on your team’s interaction with the rest of the company?

The payment services market has undergone a profound transformation and it is thus essential for our company to be updated on all subjects and issues related to its business. Every morning new issues arise which require legal assessment, so this daily company-wide publication covering is essential to our business.

In order to disseminate the information within the company, the governmental relations and the regulatory areas prepare informative mailings to the departments that are directly involved to the subject of each new regulation, explaining the relevant impacts to Cielo. Finding ways to adapt to this new regulation to the products and services is one of legal department biggest challenges.

What experience have you as a team gained from the switch to being an ‘institution payment (IP)’ company? Do you have any advice for an organisation making this change?

Being an ‘institution payment (IP)’ company, dully approved by the Brazilian Central Bank, was a turning point to Cielo, impacting several internal procedures, methods, processes and even the culture of the company. The legal department acted as a protagonist in this process, being a focal point before the regulator and in internal discussions, having the role of clarifying details and applications of the main rules applicable to the company. As an advice to an organisation making this change, I suggest to study deeply the regulation, the environment, competition and to be active in market discussions (e.g association meetings, market forums, workshops). The knowledge that is shared in these groups is essential to understand and proper implement the regulation.