BPCE_PILLAR_III_2017

NON-COMPLIANCE RISKS, SECURITY AND OPERATIONAL RISKS Banking compliance and customer protection

Banking compliance and customer 11.1 protection

Organization

BANKING COMPLIANCE

operationof compliancecontrols and through risk-mappingelements reported by Groupe BPCE institutionswithin the banking compliance

This field includesthe preventionof non-compliancerisks in the areas of legislation, regulations or professional standards, within the banking and KYC scope. To this end, it encompasses support for operationaldepartmentsin their compliancewith regulatorychanges, the distribution of standards (including ACPR recommendationsand EBA guidelines), compliance expertise for the purpose of approving new products or sales processes, supervision of document and challenge approval processes and the monitoring of the Group’s OutsourcedEssentialServices.It also strengthensthe managementof non-compliancerisk throughthe oversightof complaintsanalysis,the

and KYCscope.

CUSTOMER PROTECTION The Group’s reputation and the trust of its customers are strengthened when the products and services it sells comply with regulations and the information it supplies is reliable. To maintain this trust, the Compliance division makes customer protection a top priority.

Product governance

All new products and services, regardless of their distribution are followed and that the targeted customers channels,as well as sales materialsthat fall within Compliance’sarea large – receive clear and fair information. of expertise obtain prior approval by Compliance. In this way, the Compliance division ensures that applicable regulatory requirements

– and the public at

Compliance also coordinates the approval of national sales challenges, ensures that conflicts of interest are managed properly and guarantees that customer interests always come first.

Training initiatives

Customer protection is a constant priority for Groupe BPCE’s Compliance function. Group employees regularly receive training on customer protection issues to maintain the required level of customer service quality. These training sessions are aimed first and foremost at promoting Activities in 2017 Several regulatoryprojects were carried out in 2017: implementation of the Eckert Act fordormant accounts, support for Salesdepartments in implementing new banking mobility requirements (Macron Act), improved access to deposit accounts in line with the Payment Accounts Directive, incorporatin of initial skill sets and continuous training inthe enactmentof theMortgage Credit Directive.

awareness of compliance and customer protection among new hires and/or sales team employees. Additionally, ethics and compliance training, entitled “Fundamentalsof professionalethics”, has been set

up for all Group employees.

At the same time, particularfocus was placed on: management of non-compliance risks by re-mapping these risks ● and drawing more information from customer complaints; use of social media for sales purposes,with stricter communication ● guidelines for institutions.

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Risk Report Pillar III 2017