CA Indosuez (Switzerland) SA - 2018 Annual Report

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Activity report 2018

General Inspection is comprised of 12 members. The Head of General Inspection is appointed by the Board of Directors. Since 1 April 2017, the unit has been headed by Jean-Paul Bicot, whose education and career history are provided below: • He holds a qualification from the Société Française des Analystes Financiers, a Master's degree in Science and Technology and an analyst's certification from Standard & Poor’s. • He began his career in 1987 at Lyonnaise de Banque in Paris as Head of Capital Markets Risk and Internal Control. He joined Crédit Commercial de France in 1992 as General Inspection Assignment Leader before moving on to HSBC Capital Management in 1995 as Head of Money Market and Short-Term Investments. In 2000 he was appointed Co-Head of HSBC Securities Services in France. In May 2010, he was called upon to manage the General Inspection Division of the CACEIS Group (Paris, Luxembourg and Munich). Each year General Inspection plans its activities in cooperation with the auditing firm on the basis of a risk map, which simultaneously updates. The plan is submitted to the Board of Directors for approval and to the Audit and Risk Committee for an opinion. After completing its assignments, it issues reports documenting its findings and recommendations for the Board of Directors, the Audit and Risk Committee and the Operations Division, and content is discussed with the auditing firm and the Audit and Risk Committee. It prepares a half-year follow-up report on the open auditing referrals, as well as an annual activity report. General Inspection is overseen and evaluated by the Audit and Risk Committee, which judges its effectiveness, ensures that it has the necessary resources and skills carries out its actives independently and objectively, and reviews the relationship it maintains with the auditing firm. Each year, the Board of Directors determines whether the information requirements are being adequately met.

Upon appointment, new directors received a set of documents that specifically includes the main documents in terms of the governance of the Bank’s management bodies, the scope of internal control, the Bank’s most recent annual report, the most recent auditor’s report prepared by the auditing firm, General Inspection's most recent report, the most recent report on risks and the most recent assessment of the bank by the Swiss Financial Market Supervisory Authority (FINMA). Directors are also entitled to training. In 2018, directors were provided with in-house training on several important compliance-related topics. The Board of Directors relies on the work of the specialised committees, General Inspection, the external statutory auditors and the auditing firm to fulfil its obligations of oversight and control. The Audit and Risk Committee may request access to any information it deems relevant to the exercise of its duties. It relies primarily on the information provided by the relevant managers, and on interviews or meetings held with the statutory auditors, the auditing firm and the employees that it deems appropriate to meet in the course of fulfilling its duties. Such meetings or interviews may be conducted without the presence of the relevant managers if necessary. General Inspection is an independent unit of the Operations Division reporting directly to the Board of Directors and the Audit and Risk Committee and is a tool available to monitor and manage risk. It carries out regular checks of the activities of the Bank and its entities and has unlimited access to information for this purpose. It carries out assignments in accordance with the practices of the profession. Using a methodical, systematic approach, it verifies and assesses risk management and internal control procedures and formulates proposals to increase their effectiveness. Its organisation, activity scope and operation are governed by the Articles of Incorporation, the Internal Rules and guidance approved by the Board.