CFM INDOSUEZ Wealth Management - 2019 annual report

30 2019 Activity Report 3 / Regulatory framework Under agreements between France and Monaco, banking activities are supervised by the French Prudential Supervision and Resolution Authority (ACPR). Monegasque banks are therefore subject to the same prudential regulations as French credit institutions. However, in Monaco some financial activities enjoy a certain degree of autonomy in specific areas not directly governed by banking regulations and organisational requirements but deemed to be financial activities, such as discretionary portfolio management or the provision of investment services. These activities are subject to authorisation by the Monaco Financial Activities Supervisory Commission (CCAF) – an independent licensing authority. The monetary agreement of 29 November 2011 (applied by Sovereign Ordinance no. 3 559 of 5 December 2011) includes a commitment by the Principality of Monaco to apply or adopt measures that are equivalent to certain legal rulings made by the European Union in the area of banking and financial law and for the prevention of money laundering. 4 / Board of Directors 4.1. general informat ion At 31 December 2019, the Board of Directors of CFM Indosuez Wealth had eight members, appointed by the Ordinary Annual General Meeting for a period of three years (one year for directors over 70 years old). No Board members sit on CFM Indosuez Wealth’s Executive Committee. Board members are appointed for their integrity and expertise, which are assessed based on their background, knowledge and experience. The suitability of Board members is assessed on an individual and collective basis, with a view to ensuring a diverse range of talents, complementary profiles and balance. As a whole, the Board of Directors must possess the necessary skills in its key areas of responsibility. Membership requirements follow the rules set by the ACPR (French Prudential Supervision and Resolution Authority). The Board of Directors has three specialised committees: the Audit and Risk Committees and the Appointments Committee. pOn their appointment, new directors receive a welcome pack including documents on the governance of corporate bodies, the Bank’s charter and the audit and risk control scope. Directors receive regular training and updates. 4.2. members • Jean-Marie Sander, Chairman of the Board and Director since 20 March 2014, • Bastien Charpentier, Director since 13 December 2017, • Michel Cresp, Director since 23 May 2000, • Jean Delamalle, Director since 16 March 2010, • Hervé Husson, Director since 7 October 2016, • Pierre Masclet, Director since 12 December 2019, • Andrée Samat, Director since 16 March 2010, • François Veverka, Director since 21 March 2017 and Chairman of the Audit Committee and the Risk Committee. 4.3. organi sati on 4.3.1. Functioning of the Board As a general rule, the Board of Directors meets four times per year and, if necessary, holds special meetings. The work of the Board is based on files prepared by its Secretary. Its meetings follow a pre-established agenda and are subject to minutes signed by the Chairman and one other director. The Board functions in accordance with the company’s articles of association and its internal rules. The internal rules set out principles and best practices of corporate governance designed to ensure the quality of Board’s work, such as obligations of confidentiality, independence, loyalty and duties in respect of inside information and conflicts of interest. Directors with a conflict of interest must report the conflict and abstain from taking part in decisions. The Board of Directors met five times in 2019. 4.3.2. Expertise The Board of Directors is the administrative body in charge of senior management, high-level risk monitoring and the adequacy of the Bank’s management control system. Accordingly, it deals with major issues relating to strategy, general policy, management and the oversight of activities and risks. The Board approves the resources, organisation and planning needed to implement the strategy and general policy, based on proposals made by the Executive Committee, as appropriate. It is also responsible for finance, methods