Groupe Renault - 2020 Universal Registration Document

122 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2020 Find out more at group.renault.com 01 REGULATORY ENVIRONMENT GROUPE RENAULT Banking regulations 1.6.5 Several banking sector regulations applicable to Groupe Renault via its subsidiary RCI Banque 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 executive compensation, with the aim of harmonizing the regulations applicable to credit institutions in these areas at 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 was transposed into French law by Order no. 2020-1635 of December 21, 2020 bringing in a number of provisions adapting the legislation to European Union law on financial matters. 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. (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 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 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 require credit institutions to strengthen consumer information by providing them with a standardized European pre-contractual information sheet. Directive 2018/843 of May 30, 2018 amended Directive 2015/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing . This text was transposed in France by Government Order 2020-115 of February 12, 2021. This system: strengthens the transparency of complex legal entities and legal P structures by broadening access to registers of beneficial owners; sets out the enhanced due diligence measures to be implemented P with respect to business relationships or transactions involving high-risk third countries; sets out the guarantees to be put in place to mitigate high money P laundering risks associated with entering into a remote business relationship; and establishes the principle of consolidated supervision of AML-CFT P procedures by banking and insurance groups. Directive 2016/97 of January 20, 2016 on insurance distribution , transposed in France by Decree 2018-361 of May 16, 2018, aims to ensure better consumer protection and harmonize national rules for the distribution of insurance products. This text requires the establishment of governance procedures for the design and distribution of insurance products and the delivery of a new standardized information document (IPID) to customers. On February 25, 2019, the European Banking Authority published Outsourcing Guidelines (EBA/GL/2019/02). These guidelines set forth a governance framework for outsourcing operations. Accordingly, they require an evaluation of each subcontractor, the keeping of a register of services outsourced, and the inclusion in contracts with subcontractors of a certain number of clauses to ensure good control of the risks associated with the outsourcing.