Audit
Implementation Banking Code in 2010
Moral and ethical declaration
The Executive Board has audits carried out by Rabobank Group Audit, which holds an
independent position within the organisation. Every year, this department carries out audit
procedures, based on an extensive risk assessment and an audit plan derived from this
assessment, in order to check whether the internal control systems and risk management are
in order. The director of the department reports directly to the Chairman of the Executive
Board and has a direct reporting line to the Audit, Compliance Risk Committee of the
Supervisory Board.Tripartite talks between the independent external auditor, Internal Audit
and regulators from the Dutch Central Bank (DNB) are held at least once a year. The matters
that come up for discussion at these meetings include risk assessments, the audit plan and
audit findings. The Annual Report includes a statement from the Executive Board to the effect
that the internal risk management and control systems are set up in such a way that financial
reporting can be considered to be reliable.
Remuneration policy
Rabobank pursues a prudent, restrained and sustainable remuneration policy, which is in
line with Rabobank's strategy, chosen risk profile, cooperative identity and core values.
The remuneration policy is in keeping with a client-oriented approach and takes account of
Rabobank's long-term interests, the international context of the markets in which Rabobank
operates, and acceptance by society. The pay outcomes are balanced and the performance
criteria do not encourage employees to take irresponsible risks.
Rabobank already complied in material respects with most of the provisions of the Banking
Code, and it worked hard to implement the Banking Code in its entirety during 2010.
Governance: Executive Board
The main subjects covered in this section of the Banking Code include the duty of care
('Focusing on the customer') and the moral and ethical declaration.
Focusing on the customer
In view of the provision of the Banking Code regarding the focus on clients, Rabobank
simplified and reduced its range of savings products during 2010. As part of this, it promoted
bank savings products for mortgages and for building up pensions. These products are more
transparent and more inexpensive for clients. It also simplified the payment platforms.
In addition, the number of insurers with which Rabobank does business was reduced in a move
to ensure top-quality advice. The guidelines on the application of performance management
were amended in 2010. Focusing on the customer is now explicitly included as a key guiding
principle. Responsibility for ensuring clients are treated with due care was also included in the
job profiles of directors of local Rabobanks. In this way, serving the interests of the client has
been enshrined in the agreements made with employees.
The wording of the moral and ethical declaration was drafted in 2009. The declaration, which
was signed by all of Rabobank's Executive Board in 2010, is available online. The principles set
out in the moral and ethical declaration are continuously brought to the attention of Rabobank
Group's employees, with emphasis being placed on the Rabobank Group Code of Conduct
and dealing with dilemmas The Code of Conduct encompasses all of the principles contained
in the moral and ethical declaration. The document pack given to new employees on joining
Rabobank refers to the Code of Conduct, and a section of the employment contract is devoted
to the Code of Conduct. Further information on the Code of Conduct can be found in the
corporate governance section of this Annual Report.
Notwithstanding the moral and ethical declaration and the Code of Conduct, Rabobank
must demonstrate in its day-to-day operations that it acts in accordance with the spirit of
these principles.This is therefore monitored on an ongoing basis.
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Annual Report 2010 Rabobank Group