FRR's organisation

CDC’s role in administrative management

Pursuant to the terms of the Decree of December 19, 2001, the CDC carries out administrative management tasks on behalf of the FRR, particularly, services that are essential to the Fund’s smooth operation, such as the day-to-day management of the Fund’s cash flows, the custodial services described in Paragraph 1 of Article L321-2 of the Monetary and Financial Code (Code monétaire et financier) and assistance in setting up management systems.

The CDC performs its role under the supervision of the FRR Executive Board and independently from the CDC’s other activities. In exchange, the CDC receives management fees equal to the expenses incurred. Its role is performed in compliance with the legal provisions governing the FRR and the bylaws of its governance structures.

A master agreement between the FRR and the CDC defining this administrative management was signed on June 26, 2003, after gaining the approval of its supervisory ministries.

In connection with this management agreement, the FRR and the CDC sign an annual agreement on objectives, resources and performance, called COMP (Convention d’Objectifs, de Moyens et de Performance), in which they jointly define the services and dedicated resources to be provided by the CDC in the fulfilment of its role.

The agreement also sets forth the schedule of rates for services, defines associated performance indicators and describes the budget process. It is updated each year to ensure consistency with the FRR’s management objectives.

The FRR’s annual budget is drawn up on the basis of the COMP agreement.

In 2003, the Executive Board began the process of benchmarking its costs and techniques with the aim of aligning them with best market practice and in the interest of increasing its efficiency and controlling the Fund’s operating expenses once it has achieved full cruising speed.

As part of this process, the FRR set up management steering indicators for the Fund and for the performance of the administrative management of the CDC (Caisse des dépôts et consignations). These indicators are reviewed periodically in light of changes in operational management requirements and adjusted accordingly.

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