Instruction No. 2012-I-07 of December 13, 2012, regarding the questionnaire on the application of rules to ensure customer protection (repealed)

PRUDENTIAL CONTROL AUTHORITY
Instruction No. 2012-I-07 regarding the questionnaire on the application of rules designed to ensure customer protection

The Prudential Control Authority,
Having regard to the Monetary and Financial Code, particularly Articles L. 612-1 II 3°, L. 612-2, and L. 612-24; Having regard to the Insurance Code, particularly Article R. 336-1; Having regard to the Mutual Code, particularly Article R. 211-28; Having regard to the Social Security Code, particularly Article R. 931-43; Having regard to CRBF Regulation No. 97-02 of February 21, 1997, as amended, relating to the internal control of credit institutions and investment firms; Having regard to the opinion of the Consultative Commission on Commercial Practices of November 26, 2012; Having regard to the opinion of the Consultative Commission on Prudential Affairs of November 27, 2012; Decides:

Article 1
The following are hereinafter referred to as "subject entities":
– credit institutions, with the exception of establishments and branches authorized to exercise their activity in the Principality of Monaco; – investment firms other than portfolio management companies; – payment institutions; – entities mentioned in point 5 of Article L. 511-6 of the Monetary and Financial Code; – companies exercising direct insurance activity mentioned in Article L. 310-1 of the Insurance Code and companies mentioned in the last paragraph of the same article; – mutual societies and unions governed by Book II of the Mutual Code; – provident institutions, unions, and joint provident groups governed by Title III of Book IX of the Social Security Code; – persons mentioned in Article L. 612-2 III of the Monetary and Financial Code exercising their activity in France on a free establishment basis.

Article 2
Subject entities must respond to the questionnaire on customer protection rules appearing in Annex 1 for the banking, payment services, and investment services sector or in Annex 2 for the insurance sector, under the conditions specified in Articles 3, 4, and 5 of this instruction:

The questionnaire comprises five tabs.

1. A "General Data" tab, intended to collect identification and activity data (Tab 1).
2. An "Organization/Internal Control" tab, intended to collect information regarding the measures put in place to ensure the protection of customers' interests (Tab 2).
3. A "Complaints/Volume" tab, intended to collect statistical data on recorded complaints (Tab 3).
4. A "Complaints/Organization" tab, intended to collect information regarding the complaint handling mechanism (Tab 4).
5. A "Validation" tab informing of any points that appear coherent to complete regarding the declared activity and the answers provided (Tab 5).

Definitions related to complaints (Tabs 3 and 4) are specified in Annex 3 of this instruction. The information contained in the questionnaire responses is finalized on December 31 of each calendar year. A methodological guide respectively for entities in the banking, payment services, and investment services sector and for the insurance sector is attached to this instruction (Annexes 4 and 5). The computerized questionnaire is available for download on the ACP website.

Article 3
The following subject entities are exempt from Tabs 2 to 4 (Organization/Internal Control, Complaints/Volume, Complaints/Organization), after having provided the identification and activity data of Tab 1 "General Data":
– for subject entities in the banking, payment services, and investment services sector:
credit institutions that are exclusively in contact with a clientele consisting of credit institutions, and/or investment firms, and/or payment institutions, and/or insurance entities, and/or entities belonging to the same group; investment firms that are exclusively in contact with a clientele consisting of credit institutions, and/or investment firms, and/or payment institutions, and/or insurance entities, and/or entities belonging to the same group, or that perform only investment services without account-keeping or without the ancillary service of granting credit linked to an investment service; – for subject entities in the insurance sector:
entities exclusively in contact with a clientele consisting of insurance entities or entities belonging to the same group.

Article 4
Submission of the questionnaire response

1. Approval of the questionnaire response by the deliberative body (board of directors, supervisory board, or one of their specialized committees).
   The questionnaire response must mention the date of approval by the deliberative body, as well as the contact details of the compliance officer or their equivalent, and their role within the subject entity.
2. Submission to the ACP
   The questionnaire response is sent to the General Secretariat of the Prudential Control Authority in electronic form at the following addresses:
   – qpc-dcpc-bqe@acp.banque-france.fr, for the banking, payment services, and investment services sector; – qpc-dcpc-assur@acp.banque-france.fr, for the insurance sector. The questionnaire response is submitted to the ACP no later than June 30 of each year. For the 2012 exercise, subject entities must send their response no later than September 30, 2013.

Article 5
This instruction will be published in the official register of the Prudential Control Authority. Paris, December 13, 2012 The President of the Prudential Control Authority, [Christian NOYER]

Annex 1
Questionnaire on compliance with customer protection rules Banking

1. General Data
   Identification
   Year:
   CIB (Bank Identifier Code):
   Name of the establishment:
   Year of establishment authorization:

Contact details of the questionnaire author
Last Name:
First Name:
Function:
Phone:
Email address:
Mailing address:

Contact details of the Compliance Officer
Name/First Name:
Phone:
Email address:

Detail of activities exercised
Type of activities performed/products offered | Yes | No | Volume unit for each client type | Volume by client type --- | --- | --- | --- | ---
| | | | Individuals (Natural Persons) | Professionals (Natural Persons) | Legal Entities
Deposit Accounts | | | In number of accounts | | | Payment Services | | | | | | Savings Products | | | In number of accounts | | | Regulated savings and others (including term deposits and ordinary savings accounts) | | | | | | Financial Instruments (including UCITS) | | | | | | Loans | | | In number of loans | | | Including real estate/housing loans | | | In number of loans | | | Including consumer loans | | | In number of loans | | | Including revolving credit | | | In number of loans | | | Including cash credit | | | In number of loans | | | Other loans (including hire-purchase, equipment...) | | | In number of loans | | | Distribution of insurance products | | | In number of contracts | | | Life Insurance | | | | | | Loan Insurance | | | | | | Non-Life Insurance (IARD) | | | | | | Including damage insurance | | | | | | Including personal insurance (health, provident...) | | | | | | Other | | | In number of contracts | | | Comments on types of activities

Q1. Is your establishment or company exclusively in contact with a clientele consisting of credit institutions, and/or investment firms, and/or payment institutions, and/or insurance entities, and/or companies of its group?

1. Yes
2. No
   (The answer "Yes" exempts from the rest of the questionnaire.)

Q2. Do you perform only investment services without account-keeping or without the ancillary service of granting credit linked to an investment service?

1. Yes
2. No
   (The answer "Yes" exempts from the rest of the questionnaire.)

Do you wish to bring to the attention of the General Secretariat of the ACP other information regarding your activity?

1. Yes 2. No

TOTAL | Including Natural Persons | Including Legal Entities Use of Intermediaries in Banking Operations and Payment Services (IOBSP) Do you use IOBSPs? Activity Data Number of IOBSP agreements Broker Agent Multi-agent Agent of agents Including commissions Including fees Including others Number of credit operations initiated by IOBSPs Including consumer credit Including real estate credit Remuneration paid

2. Questionnaire on the general control mechanism for customer protection rules
   The questions will be asked based on the activities declared by the establishment (activity table) and based on the answers provided as the questionnaire progresses.

A. Compliance of operations with customer protection rules and monitoring of marketing risks

1. Has the establishment identified and listed the regulatory requirements for customer protection related to its various activities?
   a. Yes b. No

A1. New Products
2. Does the establishment, within the framework of prior approval processes for new products or significant transformation of pre-existing products, examine their compliance with rules or standards regarding marketing and protection of customers' interests (legislative and regulatory provisions, case law, codes of conduct, ACP recommendations, professional commitments)?
a. Yes b. No
3. Is this process formalized in a procedure?
a. Yes b. No
4. Who holds the final decision to market the product or service concerned? (multiple answers possible)
a. General Management b. Commercial Direction
c. Other (to be specified)
5. Is the decision documented and archived?
a. Yes b. No
6. Does the product examination include...
a. examination of marketing procedures?
i. Yes
ii. No
iii. Not applicable
b. examination of sales support documentation provided to sales staff?
i. Yes
ii. No
iii. Not applicable
c. examination of documentation provided to the client
i. Yes
ii. No
iii. Not applicable
d. a consistency check between these two types of document
i. Yes
ii. No
iii. Not applicable
e. evaluation of risks borne by the client
i. Yes
ii. No
iii. Not applicable
f. written opinion of the Compliance Department
i. Yes
ii. No
iii. Not applicable
7. Number of files examined within the framework of prior approval processes for new products or significant transformation of pre-existing products during the past fiscal year:
8. Has the approval process been modified during the past fiscal year?
a. Yes b. No
9. Specify these modifications (if answer "yes" to the previous question):
10. Comments on the new product approval or significant transformation of pre-existing products mechanism:

A2. Regulatory Monitoring
11. Does your establishment implement one or more regulatory monitoring systems regarding customer protection?
a. Yes b. No
12. Which unit(s) is/are responsible for monitoring (multiple answers possible)?
a. Legal Department b. Compliance Department
c. Commercial Department
d. Financial Department e. Other (to be specified)
13. Specify if applicable the department responsible for listing all monitoring activities:
14. Does it cover all activities of your establishment (credit, deposit, savings, insurance, payment services...)?
a. Yes b. No
15. Specify which activities are not covered (if answer "no" to the previous question):
16. Who are the recipients? (multiple answers possible)
a. Legal and Compliance stream b. Business stream
c. IT streams responsible for configuring production tools or sales support
d. Financial stream e. Training stream f. All streams
17. Are all operational staff in contact with customers informed of regulatory developments related to their activity?
a. Yes b. No
18. At what frequency is the monitoring disseminated? (multiple answers possible)
a. Weekly b. Monthly
c. Quarterly
d. Other (to be specified)
19. Does the internal control mechanism provide for:
a. Control of information dissemination to impacted collaborators?
i. Yes
ii. No
b. Control of the transcription of regulatory changes into the establishment's internal procedures and tools?
i. Yes
ii. No
c. Control of the update of commercial and contractual documentation?
i. Yes
ii. No
20. Has the regulatory monitoring mechanism been modified during the past fiscal year?
a. Yes b. No
21. Specify these modifications (if answer "yes" to the previous question):
22. Comments on the regulatory monitoring mechanism:
23. Which documents intended for customers were modified during the past year?
24. For what reasons?

A3. Definition of customer profiles and adaptation of product range
25. Has your establishment defined customer profiles for its banking activities (other than those related to anti-money laundering and counter-terrorist financing, financial services from MIF directives, and market abuse)?
a. Yes b. No
c. Not applicable
26. Is this a purely patrimonial approach to the client's situation?
a. Yes b. No
c. Not applicable
27. Are criteria for knowledge and understanding of the product taken into account?
a. Yes b. No
c. Not applicable
28. Is the risk appetite criterion taken into account?
a. Yes b. No
c. Not applicable
29. Is this segmentation of customers into profiles taken into account for the marketing of the following products? (check proposals conforming to your establishment's situation)
a. For banking savings products b. For life insurance contracts
c. For loans
d. For accounts and packages e. For non-life insurance contracts f. Others (to be specified)
30. Has the customer and product segmentation process been modified during the past fiscal year?
a. Yes b. No
c. Not applicable
31. Specify these modifications (if answer "yes" to the previous question):
32. Comments on the customer and product segmentation process:

A4. Quality of information and advice provided to customers
33. Does your establishment ensure the quality of information and explanations given to clients by its collaborators?
a. Yes b. No
c. Not applicable
34. By what means? (multiple answers possible)
a. Adapted sales support tools b. Training provided to relevant personnel
c. Permanent control points
d. Audits e. Other(s) (to be specified)
35. Does your establishment ensure the quality of advice given to clients by its collaborators within its insurance intermediation activity?
a. Yes b. No
c. Not applicable
36. By what means? (multiple answers possible)
a. Questionnaires aimed at targeting customer needs and experience b. Adapted sales support tools
c. Training provided to relevant personnel
d. Permanent control points e. Audits f. Other(s) (to be specified)
37. Is there a mechanism ensuring the traceability of customer needs and advice provided to the client during the marketing of insurance products?
a. Yes b. No
c. Not applicable
38. For collaborators recruited during the past fiscal year, what is the education level of those destined to be in contact with customers?
a. Mostly "bac + 2" (High school diploma + 2 years) b. Mostly "higher than bac + 2"
c. Mostly "other" (to be specified)
d. Not concerned
39. Percentage of customer-facing collaborators recruited during the past fiscal year holding a diploma giving them knowledge in banking (BTS banking, ITB...):
a. ≤ 25% b. > 25% and ≤ 50%
c. > 50% and ≤ 75%
d. > 75% e. Not concerned
40. Has your establishment put in place a permanent training mechanism (face-to-face or e-learning) for customer-facing collaborators on regulatory requirements for customer protection and good commercial practices (other than anti-money laundering, counter-terrorist financing, and the MIF mechanism)?
a. Yes b. No
c. Not applicable
41. List the topics covered by these trainings:
42. Does your establishment ensure? (check proposals conforming to the establishment's practices)
a. The periodicity of these trainings and the participation of relevant personnel b. The good assimilation of these trainings by learners
43. Have the recruitment policy and the personnel training mechanism/program for customer-facing staff been modified during the past fiscal year?
a. Yes b. No
44. Specify these modifications (if answer "yes" to the previous question):
45. Does your establishment ensure that its remuneration or personnel evaluation mechanism does not create situations contrary to the client's interest?
a. Yes b. No
46. Is there a remuneration or one-time benefit linked to sales challenges?
a. Yes b. No
c. Not concerned (no challenges)
47. Can the variable proportion of remuneration for customer-facing staff reach?
a. More than 20% of their annual remuneration b. 15% to 20%
c. 10% to 15%
d. Less than 10% e. Not applicable
48. Do targets linked to a remuneration level include qualitative criteria for respecting customer protection rules (quality of advice, respect for internal procedures)?
a. Yes b. No
c. Not applicable
49. Has the remuneration or personnel evaluation mechanism for customer-facing staff been modified during the past fiscal year?
a. Yes b. No
50. Specify these modifications (if answer "yes" to the previous question):
51. Comments on the means implemented to ensure the quality of information/explanations/advice provided to customers, as well as on recruitment, training, remuneration, and evaluation policies or mechanisms:

A5. Marketing of credit offers
52. For the assessment of repayment capacity in consumer credit operations, is the collection of proof of income/expenses carried out?
a. Income:
i. For new clients:

• Yes
• No
• Depending on the loan amount
• Other (to be specified)
  ii. For existing clients:
• Yes
• No
• Depending on the loan amount
• Other (to be specified)
  b. Expenses:
  i. For new clients:
• Yes
• No
• Depending on the loan amount
• Other (to be specified)
  ii. For existing clients:
• Yes
• No
• Depending on the loan amount
• Other (to be specified)

53. Has your establishment defined the guarantee requirements requested when granting credit to individuals or SMEs (notably real estate)?
    a. Yes b. No
    c. Not applicable
54. Does your establishment systematically ensure client eligibility for regulated loans?
    a. Yes b. No
    c. Not applicable
55. Are advisors in charge of loans specialized?
    a. Yes b. No
    c. Not applicable
56. Do they receive specific training?
    a. Yes b. No
    c. Not applicable
57. For establishments granting real estate loans, have you subscribed to a group insurance contract that you propose to your clients as security for these loans?
    a. Yes b. No
58. If yes, with which insurance company?
59. Volume of the reviewed exercise
    a. Number of real estate loans granted to natural persons:
    i. At fixed rate
    ii. At variable rate
    iii. With group borrower insurance:
    iv. With external borrower insurance:
    b. Number of professional loans granted to natural persons:
    i. At fixed rate
    ii. At variable rate
60. Has the marketing mechanism for credit offers been modified during the past fiscal year?
    a. Yes b. No
61. Specify these modifications (if answer "yes" to the previous question):
62. Comments on the marketing mechanism for credit offers:

A6. AERAS Convention
63. Is your establishment subject by its activity to provisions of the AERAS convention?
a. Yes b. No
64. Does the training of advisors in charge of loans include a presentation of the AERAS convention and all corresponding commitments?
a. Yes b. No
c. Not applicable
65. Does the internal control mechanism provide for verification of compliance with the following commitments?
a. Communication of the decision regarding a real estate loan application by a natural person within two weeks following the transmission to the establishment of the client's acceptance of the insurer's proposal
i. Yes
ii. No
iii. San...