BPCE_REGISTRATION_DOCUMENT_2017

5 FINANCIAL REPORT

Controls of accounting and financial reporting quality

ROLE OF SUPERVISORY BODIES IN ACCOUNTING AND FINANCIAL DISCLOSURE Once per quarter, the BPCE Management Board finalizes the consolidated financial statements and presents them to the Supervisory Board for verification and control. Individual financial statements are prepared once per year, in accordance withregulations inforce. The SupervisoryBoard of BPCE checks and controlsthe individualand consolidatedfinancialstatementspreparedby the BPCE Management Board and presents its observations about the financial statements for the fiscal year at the Ordinary General Shareholders’Meeting. For this purpose, the SupervisoryBoard has set up a specialistcommittee in charge of preparing its decisions and formulating recommendations:the Audit Committee. Details on this committee’s duties, including monitoring the process for preparing accounting and financial information, the statutory audit of the annual and consolidatedfinancial statements,as well as the Statutory Auditors’ independence, are defined in Chapter 2 “Corporate governance”. The Finance Committee is composed of executives from each of the two networks and is tasked with reviewing all financial subjects relating to the shareholdercommunity.It examines these subjects in keepingwith Group committeescovering these areas and provides an advisory opinion. In addition,BPCE’sManagementBoard assignsthe Group Financeand Strategy division the task of organizing the process of coordinating,

disclosing and forming a decision on the financial and accounting sphere through the Finance function’s supervisory bodies, organized around threecategories: permanent bodies (or committees); ● coordination and reporting bodies: these comprise key managers ● from the Finance functionor key managersfrom each business line departmentwith Finance duties (Finance Control, Accounting,Cash Management,Asset-Liability Management and Tax); temporary bodies that manage and coordinate projects with ● well-defined time frames. In order to ensure the transparencyand security of the system, these bodies are formallygovernedby regulationsthat define the operation, organization,compositionand role of each committee,along with the rules for reporting on the discussions held by these committees.The Group Finance and Strategy division’s committees always involve representatives from the shareholder institutions and, if applicable, Groupe BPCE’ssubsidiaries. The Group Steering and Accounting Standards and Methods Committee is chaired by the Chief Executive Officer in charge of Finance, Strategy, Legal Affairs and the Board Secretary’s Office. Its main duties areto validate: the regulatory framework and management standards needed for ● Group oversight; strategic accounting guidelines and Groupe BPCE’s framework of ● accounting standards, including Groupe BPCE’s choices, where options are given by the texts.

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Registration document 2017