Market in Financial Instruments
The European on Markets in Financial Instruments Directive (MiFID) has brought about changes in a number of areas, among them the organization of the financial markets and the rules governing the organization and good conduct of suppliers of investment services. These obligations have been transposed into procedures that are applied throughout the different operational entities and branches in the Group.
- The concerned Dexia entities and branches have established standards with the aim to guarantee a high level of protection for investors, including:
- systems of client categorization, set up to ensure that clients receive protection that is adapted to their situation;
- client assessment procedures, which have been adopted with regard to the supply of investment services;
- Best Execution policies, under which Group entities are required (a) to communicate the best possible terms of deals to their customers and (b) to keep them up to date;
- policies for identifying, preventing and managing conflicts of interest.
In order for all Group employees concerned to be properly informed about the new rules to be applied, targeted training programs are organized on a regular basis.
Conflicts of interest
The efficient functioning of Dexia activities requires a strict policy with regard to conflict-of-interest management.
Conflicts of interest arise in a numerous situations; there can be a conflict between the interests of Dexia (or one of its employees) and those of its customers, between those of staff members and Dexia or indeed among the interests of several customers.
The Dexia Group has thus built a consolidated list – not exhaustive – of conflict-of-interest scenarios that might arise and has a policy to prevent them in each operational entity.
External functions
Internal rules on staff exercising functions outside the Group have been adopted pursuant to local rules and regulations or in line with the general principles governing conflicts of interest.
In this regard, Dexia SA complies with the requirements of the ex CBFA. Dexia SA has adopted a policy governing the external functions exercised by its directors and managers which aim to:
- ensuring the availability of executive managers of Dexia SA ;
- preventing the occurrence of conflicts of interests and the risks linked to the exercise of external functions;
- preventing Dexia SA being held liable for any market abuse relating to the financial instruments of listed companies in which directors or managers exercise a function;
- ensuring that external functions are made public.
Data protection and professional secrecy
Discretion and compliance with professional secrecy requirements (including bank secrecy, when applicable,) are essential, particularly with a view to preserving Dexia’s good reputation.
Appropriate procedures have therefore been introduced at various levels (employee, customer, transactional) throughout the Dexia Group in response to national rules and regulations.
The use of personal data is governed in many countries by statutory rules. Before using personal data, staff must acquaint themselves with the rules and obligations in force by referring to the guidelines and/or consulting the Compliance department.
Independence of Auditors
The communication and reliability of financial data is of the utmost importance for any regulated business, all the more so for a stock-market listed group like Dexia. So the role of the auditor and his independence when performing his task of auditing the accounts and in particular of evaluating all accounts-related data is of paramount importance.
Dexia has a policy designed to guarantee the independence of its auditors.
Whistleblowing
Dexia has set up an internal whistleblowing scheme with the aim of reducing the risks of suffering a financial loss, sanctions or a loss of image or reputation as a consequence of the non-fulfillment of legal and regulatory requirements.
This internal alert system involves a procedure within the company that can be used in complete confidence by employees or managers to warn it of shortcomings that are likely to have a serious impact on its business or invoke its liability, with a view in particular to enabling the company to prevent these shortcomings or take timely remedial action.
The Compliance department ensures that these internal alerts are handled with all due independence and objectivity.
Fight against corruption
The Dexia Group applies the highest standards of integrity and honesty in its business relations and dealings throughout the world. The Dexia Group tolerates no form of corruption – whether active or passive – whatsoever.
Anti-corruption rules apply to all staff and are set out in the “Integrity Policy”, in the “Code of Professional Ethics of the Dexia Group” and in the “Policy on Gifts, Favours and Invitations”.
To combat political corruption, Dexia has adopted the “Politically Exposed Persons Policy” (PEPs), which aims, above all, to prevent the risk of money laundering through personal corruption. Alongside that, the “Country Policy” considers the risk of corruption as an essential risk criteria in the Dexia Country Watch List classification.
There are several other policies that help reduce the risk of corruption. They include: the whistle-blowing policy, the principles governing the fight against money laundering and the financing of terrorism, the policy on conflicts of interest and Dexia’s policy guaranteeing the independence of its auditors.