Groupe Renault - 2019 Universal Registration Document

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REGULATORY ENVIRONMENT GROUPE RENAULT

Community design regulations 1.7.4 Council Regulation (EC) no. 6/2002 of December 12, 2001 on community designs provides for the principle of the repair clause, which excludes the protection of visible spare parts of a vehicle via designs and models (repair clause principle) in order to promote free market competition by allowing any company to manufacture and sell spare parts on the after-sales market. At the national level, European states remain divided over the repair clause. Some countries, such as the United Kingdom, Poland, Spain, and, since January 1, 2020, Germany, have adopted the repair clause as national law. However, other countries such as France, Slovakia and Croatia refuse this deregulation and therefore do not apply the repair clause principle. Banking regulations 1.7.5 Several banking sector regulations applicable to Groupe Renault via its subsidiary RCI Banque may significantly influence its activities. may significantly influence its activities Directive 2013/36 of June 26, 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment companies , known as the “CRD IV Directive” was transposed in France by Order 2014/158 and by the Decree of November 3, 2014. These texts have redefined the rules governing the approval conditions for credit institutions, the governance of credit institutions, internal control and senior executives compensation with the aim of harmonizing the regulations applicable to credit institutions in these areas at the European level. They are therefore an essential step towards the achievement of the internal market in the banking sector. Directive 2019/878 amended Directive 2013/36 as regards exempted entities, financial holding companies, mixed financial holding companies, compensation, supervisory measures and powers, and capital conservation measures. This directive has not yet been transposed into French law. European Regulation 575/2013 of June 26,2013 on prudential requirements for credit institutions and investment companies , known as the "CRD IV Directive", introduced new requirements for capital, liquidity, and leverage ratios. This regulation aims to strengthen the solidity of European banking institutions by improving the qualitative and quantitative aspects of capital. This text was amended by Regulation 2019/630 as regards the minimum coverage of losses on non-performing exposures. This new regulation also supplements the existing prudential rules as regards capital with provisions for a deduction from capital if non-performing exposures are not sufficiently covered by provisions or other adjustments.

The repair clause could become applicable to all European Union countries. In late 2018, the European Commission launched a public consultation on the overall assessment of the design and model system with questions relating to the repair clause. In addition, France has already submitted a bill on this subject, in which adoption of the repair clause is being considered. The extension of the repair clause to all European Union countries, it would have a significant economic impact on the Groupe Renault’s after-sales market share.

Directive 2014/59 of May 15, 2014 establishing a framework for the recovery and resolution of credit institutions and investment companies , known as the "BRRD Directive" set out a framework for the recovery and resolution of credit institutions. This text aims to ensure that bankruptcies of European banks are managed in such a way as to preserve financial stability and minimize costs for taxpayers. It gives the competent authorities the means to intervene before difficulties arise and, where necessary, at the start of the resolution process. The directive entered into force on January 1, 2015. These measures were supplemented by Regulation 806/2014 of July 15, 2014, which established a single resolution mechanism (SRM) and a single resolution fund (SRF). Finally, this directive was amended by Directive 2019/879 of May 20, 2019 as regards the capacity to absorb losses and recapitalize credit institutions. This directive clarifies the fixing of the MREL (Minimum Requirement for own funds and Eligible Liabilities specific to each establishment. Directive 2008/48 of April 23, 2018 on credit agreements for consumers was transposed in France by Law 2010-737 of July 1, 2010 on consumer credit reform. The purpose of these texts is to provide better consumer protection and to harmonize national credit distribution rules. These texts required credit institutions to strengthen consumer information by providing them with a standardized European pre-contractual information sheet.

122 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2019

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