Annual Accounts and Report as at 30 June 2011 Draft - Mediobanca

2. Related party disclosureAt a Board meeting held on 23 November 2010, the Directors of Mediobancaapproved the procedure in respect of transactions involving related parties, afterthe Related Parties Committee (made up solely of independent Directors) hadgiven its approval; the procedure, adopted in pursuance of Consob resolution no.17221 issued on 12 March 2010, is intended to ensure that transactions withrelated parties executed directly by Mediobanca or via subsidiaries are managedtransparently and fairly. The full document is published on the Bank’s website atwww.mediobanca.it.The procedure came into force on 1 January 2011, without prejudice to theadvertising profiles in force since 1 December 2010.For the definition of related parties adopted, please see part A of the notes tothe accounts.Accounts with related parties fall within the ordinary operations of the Groupcompanies, are maintained on an arm’s length basis, and are entered into in theinterests of the individual companies concerned. Details of Directors’ and strategicmanagement compensation are provided in a footnote to the table. No transactionswere entered into with related parties during the period that could have impactedsignificantly on the Group’s assets or earnings results.The exposure to related parties (defined as the sum of assets plus guaranteesand commitments) fell from €4bn to €3.9bn, due to the reduction in treasurypositions.Overall, accounts with related parties represent approx. 6% of the totalbalance-sheet aggregates and 1% of net interest income.During the period under review, a transaction was executed which qualifiedas relevant under Consob regulations (in an amount of €450m), and was exemptfrom the related party procedure because of its ordinary nature and because itwas completed on an arm’s length basis; Consob was in any case informed of thetransaction.– 427