Investor relations
Communication with the local Rabobanks
Corporate governance information on the
Internet
Controls over financial reporting
continues to exist, but decides only on major issues that
impact the bank's continued existence.
Besides good communication with its members, Rabobank
Nederland also attaches great importance to good com
munication with institutional investors and other providers
of professional funds. The Investor Relations department
informs this target audience on developments at Rabobank
Group via a dedicated website and an electronic newsletter.
This department is also responsible for supplying and
explaining all relevant information requested by investors.
In addition, institutional investors and other providers of
professional funds are informed, through presentations or
face-to-face, about the financial developments at Rabobank
Group.
A closed Internet connection created specifically for the local
Rabobanks gives them swift access to useful information
and fosters a high level of commitment to Rabobank
Nederland.
Rabobank Group has placed information on its corporate
governance and activities on its public Internet site, including
a full explanation of the areas in which Rabobank Group
deviates from the Dutch Corporate Governance Code.
While Rabobank Group endorses the Code's principles
and implements the majority of its elements, it does not
implement a number of principles and best practice
provisions on account of its cooperative structure.
Rabobank Group constantly seeks to improve its corporate
governance and overall internal controls, for example,
by endorsing the principles of the Dutch Corporate
Governance Code. Rabobank seeks an open culture and
transparent accountability in respect of policies and
supervision, and to remain in line with the leading risk
management practices in the world. The market demands
heightened awareness of world-wide best practices in
governance and control, and Rabobank Group proudly
embraces ethical business practices, transparency and
accountability.
In this spirit, Rabobank Group voluntarily assessed the
internal controls over financial reporting in a manner similar
to what US-registered companies have done pursuant to
Section 404 of the United States Sarbanes Oxley Act of
2002 (SOX 404), even though Rabobank Group is not a
registrant with the United States Securities and Exchange
Commission and, thus, is not subject to the SOX Act or related
regulations and oversight. Rabobank took into account the
further explanation by regulators (following the debate on
high efforts and costs for many US companies) about the
way SOX 404 is meant to be applied.
We believe that Rabobank Group's review of internal con
trols over financial reporting has increased the effectiveness
of those controls, including improving our ability to identify
and to remediate control deficiencies and providing greater
transparency for all stakeholders into the quality of
Rabobank Group's financial reporting process. Also as a
result of our review, Rabobank Group has identified areas to
improve certain of our business processes.
Rabobank Group has established and maintains a compre
hensive system of internal control measures designed to
ensure transactions are executed as authorised, financial
reporting is accurate and reliable, and assets are safeguarded.
We implemented a process whereby finance and business
executives throughout the Group assess and attest to the
accuracy of financial information as well as the adequacy
and effectiveness of internal control over financial reporting.
We have adopted policies and procedures that:
- pertain to the maintenance of records that in reasonable
detail accurately and fairly reflect transactions and
dispositions of assets;
- provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial
statements in accordance with International Financial
Reporting Standards as adopted by the European Union,
and that receipts and expenditures are made only in
accordance with authorizations of management; and
- provide reasonable assurance regarding prevention or
timely detection of unauthorized acquisition, use or
disposition of assets that could have a material effect on
the financial statements.
66 Rabobank Group Annual Report 2006
