Subsidiaries and group entities
Customer interests and risk management as guiding principles
Governance: Executive Board
Treating Customers Fairly
Given the structure of Rabobank Group, in instances where the Banking Code mentions the
executive board and the supervisory board, this refers to the bodies of Rabobank Nederland
rather than to the Management Teams and Supervisory Committees of the individual local
Rabobanks. The Banking Code therefore does not apply to the individual local Rabobanks.
At Rabobank Group, Robeco and Rabo Real Estate Group report separately on the application
of the Banking Code. As De Lage Landen does not publish an annual report of its own,
reporting on the application of the Banking Code at De Lage Landen has been consolidated
in this Annual Report. Considering the group policy on risk management, audits and
remuneration, De Lage Landen complies in full with the relevant provisions of the Banking
Code. The composition and performance of the supervisory board of De Lage Landen reflects
the fact that De Lage Landen is a wholly owned subsidiary of Rabobank Nederland. Friesland
Bank merged with Rabobank in 2012. It will be some years before Friesland Bank has been
fully integrated into the organisation. Because of the integration process, Friesland Bank is
unable to apply all the principles of the Banking Code. It does not comply with sections
2.1.5, 2.1.8, 2.1.9, 2.1.10, 2.2.13.1.3, 3.1.4, 3.1.6, 3.2.2, 3.2.3, 4.1 and 4.2 of the Banking Code
(see the separate appendix to this Annual Report that can be viewed on the corporate
website www.rabobank.com/annualreports).
Rabobank naturally endorses the Banking Code and believes it is an important guideline for
the sector to improve the organisation and operation of internal functions.
The main subjects covered in this section of the Banking Code are the duty of care (Treating
Customers Fairly (TCF)) and the moral and ethical declaration.
Being a cooperative, Rabobank places customer interests at the heart of its service provision.
It is Rabobank's ambition to provide customers with the best possible service, while exercising
due care and treating them fairly. This has been enshrined in the Rabobank Group Code of
Conduct and the Rabobank Ambition Statement. Rabobank has a cooperative structure with
independent banks that recognised and valued by their customers as being committed,
nearby and trend-setting in their service offering. In the cooperative model of Rabobank, local
Rabobanks are directly accountable to customers through member councils. In addition, the
local Supervisory Committees oversee the actions of the Rabobank's to ensure that they are in
the customers' best interests. These are the essential aspects of the local governance at local
Rabobanks that guarantee customer focus.
At group level, representatives of local Management Teams and Supervisory Committees
decide on the policies pursued by Rabobank Nederland, and the Executive Board is
accountable to these representatives. As a result, the voice of the customer is heard in group-
level decisions as well.
To underscore its ambition to provide customers with the best possible service and to treat
them fairly, Rabobank launched Customer Care, an internal programme, in 2008. In 2010,
Rabobank formulated clear principles for four key deliverables: appropriate advice, good
products, service excellence and a balanced advisory model. This framework will be evaluated
and fine-tuned in 2013.
Treating Customers Fairly (TCF) was also a priority for the Executive Board of Rabobank
Nederland in 2012. At the beginning of the reporting year, a new broadly based TCF taskforce
was installed at group level to promote the principle and monitor progress. Management
information about customer surveys, complaints, product reviews and feedback from the
Netherlands Authority for the Financial Markets (AFM) continually drives improvements.
In 2012, activities in the area of Treating Customers Fairly were reported on a quarterly basis
for each department. Progress in this area was discussed at Executive Board and Supervisory
Board level, based, in part, on reports of Rabobank Group Audit and Group Compliance.
92 Annual Report 2012 Rabobank Group
