Risk management
The processes linked to securities services are factors of risk for any institutions carrying out this activity (controlling margins, market risk and regulatory obligations).
On behalf of its customer institutions, Crédit Agricole Titres rolls out and reviews, in light of regulatory requirements and developments, the means and procedures required to manage this risk and strengthen the overall internal control system.
The processes linked to securities services are factors of risk for any institutions carrying out this activity (controlling margins, market risk and regulatory obligations).
On behalf of its customer institutions, Crédit Agricole Titres rolls out and reviews, in light of regulatory requirements and developments, the means and procedures required to manage this risk and strengthen the overall internal control system.
Security
When they call on the services of Crédit Agricole Titres, financial institutions are above all looking for security in the processing of their transactions.The security measures and controls comply with best practices as set out in the white paper on information system security and in the market regulators’ guidelines (Commission Bancaire and AMF).
Crédit Agricole Titres’ information system ensures total separation of the data relating to its different customers and thus offers absolute confidentiality.
A state-of-the-art business continuity plan
Crédit Agricole Titres has drawn up a Business Continuity Plan (BCP) to cover any possible failures in its production systems and other activities, even in the event of major disasters (natural catastrophe, fire, etc.). The BCP describes the solutions implemented in the event of unavailability of the IT production system, the premises, the staff or the service providers involved in its activities.To guarantee the continuity of IT production, Crédit Agricole Titres has rolled out solutions at two levels:
. Level 1: Back-up plan at the main production site consisting of two IT rooms located in separate buildings and a full auxiliary version of the production environment.
. Level 2: External back-up plan in the event of the total unavailability of Crédit Agricole Titres’ production site. This provides for the identical reproduction of the information system at an outside back-up site.
Moreover, to ensure the continuity of business processes, Crédit Agricole Titres has a back-up site for users connected to the main production site and the external back-up site.
BCP procedures are tested twice a year at two levels: pre-production tests for the two back-up plans and real transfer of production to the back-up room for the CAMPUS back-up plan.
In 2006, Crédit Agricole Titres demonstrated the reliability and effectiveness of its BCP through tests carried out with several of its customer institutions and partners such as Euroclear and stockbrokers.
Internal control and Compliance
Two regulatory bodies supervise Crédit Agricole Titres: Autorité des Marchés Financiers and Comité des Établissements de Crédit et des Entreprises d'Investissement (CECEI).Accordingly, it complies with the AMF General Regulations, notably Book III, which defines the respective roles of the Investment Services Supervisor and the Compliance Officer, whose functions are separate at Crédit Agricole Titres, with as their main responsibilities: compliance with AMF regulations (Compliance) and professional conduct of the staff.
Moreover, to comply with CRBF regulation 97-02 reforming control functions, as amended by Commission Bancaire, Crédit Agricole Titres changed its organisation so as to separate the Compliance, Permanent Control and Periodic Control functions. Fifteen people are currently responsible for carrying out these different controls.
The organisation and operation of Crédit Agricole Titres’ Internal Control system are described in its Internal Control Charter.
