CA Indosuez (Switzerland) SA Annual Report 2022 60 4. APPENDICES 4.1. NAME, LEGAL FORM AND REGISTERED OFFICE OF THE BANK The scope of activity of CA Indosuez (Switzerland) SA (hereinafter "the Bank"), a public limited company set up under Swiss law, is comprised of wealth management, commercial banking and transactional commodity finance, as well as spot and forward trading in money market instruments, currencies and precious metals. In addition to its registered office in Geneva, the Bank has branch offices in Lugano, Zurich, Hong Kong, Singapore and Dubai and subsidiaries in Switzerland and Lebanon, as well as one representative office in the United Arab Emirates. 4.1.1. Compulsory disclosure on the Hong Kong branch remuneration system The Board of Directors of CA Indosuez (Switzerland) SA is responsible for the design and implementation of the remuneration policy. It has appointed a Remuneration Committee composed of three Board members. The structure and amount of total compensation is aligned with the business strategy, objectives, values and long-term interests of CA Indosuez (Switzerland) SA, such as sustainable growth prospects, financial results and risk policy. The remuneration policy is consistent with the principles governing client and investor protection. In addition, when setting variable remuneration, all risks are taken into account, including liquidity risk and the cost of capital. Remuneration is structured to ensure that the fixed and variable components are fairly balanced. The fixed component accounts for a sufficiently significant share of total remuneration and makes it possible to operate a flexible bonus policy. Annual variable compensation remunerates employees’ performance, which is assessed in terms of achievement of qualitative and quantitative targets. Non-payment of variable remuneration is possible in cases where performance is insufficient or where internal rules or procedures have not been complied with. To avoid any conflict of interest, the variable remuneration of control function personnel is set independently of the results of the entities, business lines or departments for whom they validate or review the operations and take into account the achievement of the objectives associated with the function. In compliance with Crédit Agricole Group regulations, for identified personnel under CRD V Directive regulation, if a bonus of more than EUR 50’000 or representing more than a third of the annual total compensation is awarded to an employee, payment of a portion of the bonus is deferred over a period of minimum four years. For non-identified personnel, the threshold for deferral is a bonus over EUR 120’000 and the deferral period is three years. The deferred bonus vests in tranches and is paid in cash, whereas at least 50% of it is linked to Crédit Agricole S.A.’s share, to encourage alignment with value creation. The payment of the tranches is subject to both performance and presence conditions. Any deferred remuneration may be reduced or withheld subject to clawback conditions. The Senior Management is defined as the Branch’s CE (Chief Executive), the alternate CEs (Head of MIS and COO), the Head of Risk, the Head of Internal Audit and the Head of Compliance. The Key Personnel category is defined as the identified personnel under CRD V Directive regulation who is not included in the Senior Management category. In reference to financial year 2022, for Senior Management (6 individuals) and Key Personnel (3 individuals), total fixed pay in cash (excluding social security contributions) amounted to HKD 23.3 million and variable compensation (excluding social security contributions) totalled HKD 6.4 million (of which 4.3 million are payable in cash and HKD and 2.1 million are deferred with payments over 4 years). Their outstanding deferred compensation pertaining to financial years 2019 to 2021 amounted to HKD 4.2 million. The amounts of deferred compensation are expressed in value at grant date, all of which are exposed to ex post explicit and implicit adjustments.No guaranteed, sign-on or termination payments were awarded among the same personnel categories in 2022. 4.2. ACCOUNTING AND MEASUREMENT PRINCIPLES 4.2.1. General principles The Bank's accounting and valuation principles are based on the Swiss Code of Obligations, the Banking Act and its related Ordinance as well as the "Accounting Rules for Banks, Securities Dealers, Financial Groups and Conglomerates" ("ARB"), issued by the Swiss financial market regulator FINMA under circular 2020/2021. The faithfully presented accompanying statutory single-entity financial statements present the economic situation of the Bank such that a third party can form a reliable opinion. The annual financial statements may contain unrealised reserves. The Bank does not prepare consolidated financial statements at the Swiss level as the parent company Crédit Agricole S.A. publishes financial statements. In application of Regulation EC No. 1606/2002, the consolidated accounts of the parent company are prepared in accordance with IAS/IFRS and the applicable IFRIC interpretations as adopted by the European Union (carve out version), using certain exemptions in the application of IAS 39 for macrohedging accounting. General measurement principles The financial statements have been prepared on a going concern basis. Balance sheet data are therefore based on going-concern values. Assets are recognised on the balance sheet if, based on past events, they may be disposed of, a cash inflow is probable and their value can be reliably estimated. If a reliable estimate is not possible, then
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