and approved by the Board of Directors on 15 March without comment. All the steps required to publish the Internal Control Report and its appendices on the Onegate website with authentication of signature by the Deputy Chief Executive Officer were completed by 29 March 2024, in compliance with the deadlines set. The Cheque and Payment Security Report was finalised and published on 31 May 2024, the campaign deadline. We have stepped up our efforts to provide the Banque de France with data on fraud and means of payment in 2021 by introducing half-yearly reporting. As part of the ECB's project to overhaul its reporting and the Group's compliance project, CFM Indosuez, through CAPS, has been granted a production exemption for the 2022 financial year. The fraud and means of payment reports for H2 2023 were filed on the Onegate website on 28 March 2024 and those for H1 2024 on 1 October 2024. The half-yearly report on Internal Control and the annual LCB/FT report were presented to the CFM Indosuez Board of Directors on 1 October 2024 without comment. The Specialised Audit and Risk Committee meetings were held and chaired by Pascal Brouard and attended by the directors, the Statutory Auditors, the General Secretary of CFM Indosuez Wealth, the Head of the General Inspection Department and, in turn, representatives of the Credit Risk, Permanent Control, Finance, Compliance, Fraud and IT Security departments, on the day before the Board meetings of 15 March, 14 May, 1 September and 12 December 2024. At its meeting on 15 March 2024, the Board of Directors approved the risk appetite matrix, with no change in profile compared with the previous year. It is kept informed of changes in the indicators on a quarterly basis: the appetite matrix is presented to it at each Board meeting and, if the tolerance threshold for an indicator is exceeded, an explanatory note is sent to the Board meeting following the observation that the threshold has been exceeded. In this respect, information was required following the tolerance threshold for the operational risk indicator being exceeded at 2.57% compared with a threshold of 2.5% in Q3 2024, due to the recognition of additional provisions in connection with litigation following the decision of the Sensitive Business Committee on 20/08/2024. CREDIT AND COUNTERPARTY RISK CFM Indosuez Wealth is exposed to counterparty risks in relation to natural persons, asset structures whose economic beneficiaries are natural persons or commercial companies linked to an entrepreneur customer whose activity or decision-making centre is based in Monaco. Any exception to this scope of counterparties is subject to prior approval by Indosuez Wealth Group General Management and its RPC department. With regard to financial institutions, the Indosuez Wealth Group does not have any risk delegation (CACIB process). The governance of the credit policy is mainly defined within the framework of the Indosuez directive 10.2.FR Credit risk management within the Indosuez Wealth Management group, updated during the 2024 financial year. Management Granting process The Indosuez Wealth Group's Framework Directive defines credit risk management in private banking and specifies the nature and type of eligible counterparties and the financing methods that can be envisaged. The lending policy is based mainly on the nature of the transactions, the delegate system, the credit decision process and the management of collateral. Transactions are selected on the basis of the type of loan granted, which can take 8 distinct forms: cash flow requirements, investment in movable assets, specific assets, mortgage loans, corporate loans, asset management transactions, Private Equity subscriptions and, mainly, bond issues and guarantees. The Risk and Permanent Control Department examines all applications submitted by the Sales Department and issues an opinion on each loan application. The local Risk Committee has sole authority to decide on the granting of loans. The Legal and Compliance functions are represented on the Risk Committee. In the event of an unfavourable opinion, an appeal procedure may be activated to submit the application to the higher decision-making body (local Risk Committee/Indosuez Wealth Group Credit Committee). Delegation mechanism All lending decisions are governed by the principle of dual signature by an authorised sales manager (Front Office signature) and by an authorised Risk and Permanent Control representative (Risk signature) depending on the level of local delegation. The Chief Executive Officer of CFM Indosuez Wealth has delegated authority to enter into risk commitments for operations relating to Wealth Annual Report 2024 45
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