HSBC France € 20,000,000,000 Euro Medium Term Note Programme

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in 2007: business operations including among others Asset Management, investment funds, employee savings,
factoring, compliance, commu nication, IT Systems Department, procurement, risk management and lending
operations are scheduled for the first half of 2008 for the remaining operations.
A consultation took place, both with the FBF (French Banking Federation) and internally, to define specific
plans that would meet the public authorities’ expectations for dealing with other major risks that could affect
business continuity, such as floods and pandemics. This effort is due to result in specific business
continuity/resumption plans being drawn up.
Lastly, a business security department set up in 2006, is responsible for crisis management and oversight of the
HSBC France group’s business continuity plans.
Dependency
HSBC France is not dependent on any patents or licences or industrial, commercial or financial supply contracts.
Environmental risks
The Corporate Social Responsibility policy is described on pages 40 to 46 of HSBC France’s annual report for
2007.
COMPLIANCE RISKS
Compliance risk is the risk of judicial, administrative or disciplinary sanctions, financial loss or damage to
reputation associated with failure to comply with provisions of law, regulation, professional rules or codes of
conduct applicable to banking and financial activities.
Organisation of compliance control
Within the HSBC France group, the compliance risk control system is directed by the Compliance Department.
Effective March 2006, all compliance personnel within the HSBC France group report hierarchically to the
Compliance Department so as to ensure full independence of the compliance function from the operational
activities, as required by CRBF Regulation 97-02. The Compliance Department consists of five departments
reporting to the Head of Compliance: four departments specialised by business line (Retail Banking and
Insurance; Global Banking and Markets; Asset Management; Private Banking) and a central compliance
department responsible for ensuring that the system is internally consistent.
As part of its role of coordinating and leading the compliance control effort, the Compliance Department is
responsible for:
• monitoring regulatory developments that will have an impact on the activities of the HSBC France
group, jointly with the Legal and Tax Department;
• identifying the compliance risks associated with the activities conducted by HSBC France;
• preparing and updating the necessary procedures and instructions to achieve compliance in practice with
legal and regulatory provisions;
• informing and training employees with regard to the compliance obligations arising from their activities
and responsibilities;
• performing an advisory function for operating managers to assist them in meeting compliance
obligations;
• organising and, in coordination with the internal control departments of the business lines and
subsidiaries, carrying out the permanent controls of compliance;
• coordinating relations with regulatory authorities.