CAFFIL: Supervisory Bodies

Due to its status as a covered bond credit institution, the Caisse Française de Financement Local is subject to oversight by several regulatory bodies:

• The Prudential Supervision and Resolution Authority (ACPR)
• The Financial Markets Authority (AMF)
• The statutory auditors
• The specific controller

Prudential Supervision and Resolution Authority (ACPR)

• The ACPR conducts its supervision through various documents submitted quarterly by the Caisse Française de Financement Local.
• The ACPR ensures compliance with banking regulations and the specific rules applicable to covered bond credit institutions.
• It also has full authority to carry out on-site inspections.
• Additionally, the SFIL Group is directly supervised by the European Central Bank.

Financial Markets Authority (AMF)

• The Caisse Française de Financement Local’s covered bond issuance program is registered in Paris with the Financial Markets Authority (AMF) and has been passport-approved in Luxembourg by the Commission de Surveillance du Secteur Financier (CSSF).
• Supervision framework: Article L.621-8-1 of the French Monetary and Financial Code.
• The Caisse Française de Financement Local has designated the Financial Markets Authority (AMF) as the competent entity for overseeing its obligations regarding regulated information disclosure.

Statutory Auditors

• The Caisse Française de Financement Local, as a credit institution, is subject to supervision by two statutory auditors, each from independent auditing firms.
• Audits of the financial statements are conducted semi-annually.

Specific Controller

• The specific controller, appointed with the approval of the Prudential Supervision and Resolution Authority (ACPR), ensures compliance with the legal provisions applicable to covered bond credit institutions, specifically:
  • The eligibility of assets under legal requirements,
  • Adequate matching of maturity and interest rates,
  • Compliance with the coverage ratio for privileged liabilities by assets (above 105%).

• The specific controller’s mission is permanent. They certify compliance with the coverage ratio, which allows the legal privilege mention to be included in the contract of each bond issuance.

• Supervision framework: Articles L. 513-23 and L. 513-24 of the French Monetary and Financial Code.