BPCE_PILLAR_III_2017

10 LEGAL RISKS

Legal and arbitration proceedings – BPCE

Outstanding legal risks at December 31, 2017 likely to have a negativeinfluenceon the Group’s assets, were subject to provisions in line with the Group’s best estimate based on available information.

To date, there are no other governmental, legal or arbitration procedures of which the Group is aware that are likely to have, or have had during the past twelve months, any significant effect on the financial position or profitabilityof either the company or the Group.

Legal and arbitration proceedings – BPCE 10.1

Check imaging exchange (échange image chèques) commissions Marketplace antitrust case initially involving Banques Populaires Participations (BP Participations) and Caisses d’Epargne Participations (CE Participations) and BPCE since it merged with and absorbedBP Participationsand CE Participations

to breach of procedure. The banks were once again required to pay the fine. BPCE, along with the other incriminatedbanks, referred this ruling to the Paris Court of Appeals requesting that it purge this breach of procedure and uphold its 2012 decision, ensuring that BPCE will ultimately be reimbursed. The Second Court of Appeals ruled on December 21, 2017 and confirmed the 2010 analysis of the anti-trust authority, thus contradicting the initial decision by the Paris Court of Appeals in 2012. The Court consideredthat the introductionof the EIC commissionand CSCs constituteanti-competitivepractice in its nature and confirmed the conviction to pay the fine set by the ADLC. However, the Court reduced the amount of the Caisse d’Epargne’s fine by € 4.07 million, by cancelling the 10% increase to the fine imposed by ADLC on certain banks for their key roles in negotiations.BPCE, taking over the rights of CE Participations, should retrieve this amount of € 4.07 million from the Treasury. On January 22, 2018, the banks filed an appeal with the Court of Cassation.

On March 18, 2008, BFBP and CNCE received, as was the case for other banks on the marketplace, a notice of grievance from the French anti-trust authority. The banks are accused of having establishedand mutuallyagreed on the amount of the check imaging exchange commission, as well as relatedcheck commissions. The anti-trustauthoritydeliveredits decision on September 20, 2010 to fine the banks found guilty ( € 90.9 million for BPCE). These banks (except for the Banque de France) lodged an appeal. On February 23, 2012, the Paris Court of Appeals overruled the anti-trust authority’s decision and the € 90.9 million fine paid by BPCE wasrefunded. On March 23, 2012, the anti-trust authority launched an appeal of the Court of Appeals’ ruling. 14, 2015, the Court of Cassation overturnedthe Court of Appeals’ 2012 ruling due On the referral of the anti-trust authority, on April

182

Risk Report Pillar III 2017

Made with FlippingBook - Online magazine maker