Exhibit 1.2
CREDIT SUISSE GROUP | ||
Investment Banking•Private Banking•Asset Management | ||
Valid as of January 1, 2006
2 OGR of Credit Suisse Group
Index
OGR of Credit Suisse Group 3
ABBREVIATIONS AND DEFINITIONS
AC | Audit Committee of the BoD | |
AVP | Assistant Vice President | |
Bank | Legal Entity Credit Suisse | |
BoD | Board of Directors | |
CC | Compensation Committee of the BoD | |
CEO | Chief Executive Officer | |
CGC | Chairman’s and Governance Committee of the BoD | |
CARMC | Capital Allocation and Risk Management Committee of CS | |
Ch | Chairman of the BoD (unless stated otherwise) | |
COO | Chief Operating Officer | |
CS | Credit Suisse and all its subsidiaries or other enterprises owned or controlled by CSG | |
which are allocated to the management of the Bank | ||
CSG | Legal Entity Credit Suisse Group | |
DIR | Director | |
EBK | Swiss Federal Banking Commission | |
ERC | Economic Risk Capital | |
GxB | Group Executive Board | |
Group | CSG and all its direct and indirect subsidiaries | |
GCEO | Group Chief Executive Officer | |
GCFO | Group Chief Financial Officer | |
GCRO | Group Chief Risk Officer | |
GGC | Group General Counsel | |
GM | General Meeting of Shareholders | |
JV | Joint Venture | |
MDA | Managing Director Senior Advisor | |
MDR | Managing Director | |
P&L | Profit and Loss Statement | |
RC | Risk Committee of the BoD | |
SCO | Swiss Code of Obligations | |
SWX | Swiss Stock Exchange | |
VP | Vice President | |
WGR | Winterthur Group (i.e. WSIC and all its direct and indirect subsidiaries) | |
WL | Legal Entity Winterthur Life | |
WSIC | Legal Entity 'Winterthur' Swiss Insurance Company | |
Group Policy | Responsibilities as included in CSG’s OGR, Code of Conduct, policies, objectives, strategy and business and financial plans, to the extent applicable, as well as specific standards and instructions established by CSG for specific activities. | |
P | Planning / Preparation / Proposal | |
C | Consultation (prior to next step/decision) | |
D | Decision | |
R | Ratification / Approval | |
I | Information | |
Imp | Implementation (person responsible for the implementation of a decision) | |
resp | Person responsible for certain action / report | |
* | authority may be delegated | |
– | The titles and functions used in this document apply to both genders. | |
– | The English version of this OGR shall prevail in an event of any interpretation conflict. |
4 OGR of Credit Suisse Group
PREAMBLE
Credit Suisse Group’s statutory purpose is to hold direct or indirect interest in all types of businesses in Switzerland and abroad, in particular in the areas of banking, finance, asset management and insurance.
The Board of Directors shall be responsible for the overall direction, supervision and control of Credit Suisse Group.
The Group’s banking business
The banking business of Credit Suisse Group is performed by Credit Suisse and its direct and indirect subsidiaries. In addition, Credit Suisse Group has allocated its directly held banking subsidiaries, in particular the independent private banks and Neue Aargauer Bank, to the management of the Bank.
The Group’s insurance business
The insurance business is performed by ‘Winterthur’ Swiss Insurance Company and itsdirect and indirect subsidiaries, in particular its wholly owned subsidiary Winterthur Life(collectively called Winterthur Group).
Each legal entity shall establish separate regulations to regulate its business within theframework of the Group Policy and applicable local law.
OGR of Credit Suisse Group 5
6 OGR of Credit Suisse Group
OGR of Credit Suisse Group 7
8 OGR of Credit Suisse Group
OGR of Credit Suisse Group 9
10 OGR of Credit Suisse Group
12 OGR of Credit Suisse Group
OGR of Credit Suisse Group 13
14 OGR of Credit Suisse Group
OGR of Credit Suisse Group 15
ANNEX A – ALLOCATION OF RESPONSIBILITIES
A | CREDIT SUISSE GROUP | GM | BoD | CGC | AC | CC | RC | Ch | GxB | GCEO | GCFO | GGC | GCRO | CS/WGR | ||||||||||||||||
LEGAL ENTITY MATTERS | Bodies | |||||||||||||||||||||||||||||
1 | General Meeting | |||||||||||||||||||||||||||||
1.1 | Prepare agenda, call meeting | D | P | P | C | C | C | |||||||||||||||||||||||
1.2 | Annual report, balance sheet, P&L, consolidated accounts | D | P | P | P | P | C | resp | C | |||||||||||||||||||||
1.3 | Allocation of profit (dividend) | D | P | P | P | P | C | P/Imp | ||||||||||||||||||||||
1.4 | Discharge of BoD and GxB | D | P | P | P | C | C | |||||||||||||||||||||||
1.5 | Election of Board members | D | P | P | P | I | C | C | ||||||||||||||||||||||
1.6 | Appointment of external auditors | D | P | P | P | P | C | P/Imp | P | |||||||||||||||||||||
1.7 | Amendments to articles of association | D | P | P | P | C | P/Imp | |||||||||||||||||||||||
2 | Capital Structure of CSG | |||||||||||||||||||||||||||||
2.1 | Approval of ordinary, authorized or conditional capital | D | P | P | P | C | P/Imp | C | ||||||||||||||||||||||
2.2 | Issuance of ordinary or authorized capital | D | P | P | C | P/Imp | C | |||||||||||||||||||||||
2.3 | Allocation of conditional capital: convertible bonds, bonds with options; shareholder options | D | P | P | C | P/Imp | ||||||||||||||||||||||||
2.4 | Allocation of conditional capital (compensation related) | |||||||||||||||||||||||||||||
– establishment of rules and regulations | I | D | P | P | C | C | ||||||||||||||||||||||||
– bonus shares | D | P | P | C | P | |||||||||||||||||||||||||
– management equity plans | D | P | P | C | P | |||||||||||||||||||||||||
2.5 | Issuance and amendments to regulations concerning the shareholders' register | D | P | C | C | |||||||||||||||||||||||||
2.6 | Report on shareholder structure | I (p.a.) | I (p.m.) | I | I (p.m.) | I | I | I | ||||||||||||||||||||||
3 | Organization of CSG | |||||||||||||||||||||||||||||
3.1 | Organization/Amendments to OGR | D | P | P | C | P/Imp | ||||||||||||||||||||||||
3.2 | Approval of annual financial plan | D | P | P | P | P | ||||||||||||||||||||||||
3.3 | General Accounting, financial control and planning principles and policies | D | P | P | P | P | P | |||||||||||||||||||||||
3.4 | Approval of significant principles of accounting | I | D | P | P | P | P/Imp | |||||||||||||||||||||||
16 OGR of Credit Suisse Group
A | CREDIT SUISSE GROUP | GM | BoD | CGC | AC | CC | RC | Ch | GxB | GCEO | GCFO | GGC | GCRO | CS/WGR | |||||||||||||||||
LEGAL ENTITY MATTERS | Bodies | ||||||||||||||||||||||||||||||
3.5 | Appointment/dismissal of GCEO/GxB members | D | P | P | P/Imp | ||||||||||||||||||||||||||
3.6 | Granting of corporate titles | D | P | ||||||||||||||||||||||||||||
3.7 | Granting of signatory power | D | P | C | |||||||||||||||||||||||||||
4 | Financing of CSG | ||||||||||||||||||||||||||||||
4.1 | The planning and monitoring of capital adequacy and liquidity for CSG and the Group as a whole and the authority to approve respective actions is delegated to the CARMC. The CS Directive on Funding Authority for the usage of money market and capital market instruments and derivatives including the issuance and sale of notes, bonds and similar securities as well as the establishment and the draw-downs of credit facilities shall be applicable to CSG in analogy. | I | I | I | |||||||||||||||||||||||||||
5 | Compensation | ||||||||||||||||||||||||||||||
5.1 | Approval of compensation principles | D | P | C | P | P | P | ||||||||||||||||||||||||
5.2 | Compensation Plans | D | C | P | P | P | |||||||||||||||||||||||||
5.3 | For details on approval thresholds regarding compensation decisions see Compensation Committee Charter. | ||||||||||||||||||||||||||||||
6 | Mergers, Acquisitions, Divestitures, Capital Expenditures, Other Participations and Related Transactions by CSG | ||||||||||||||||||||||||||||||
6.1 | a) | Formation, liquidation and capitalization of direct subsidiaries (all types of capital incl. subordinated loans and tier 3 capital) | |||||||||||||||||||||||||||||
Note: Any share capital increase requires approval by the GM of the subsidiary | |||||||||||||||||||||||||||||||
b) | Mergers, acquisitions, divestitures of direct subsidiaries or other assets constituting a business (total commitment or sales price) | ||||||||||||||||||||||||||||||
OGR of Credit Suisse Group 17
A | CREDIT SUISSE GROUP | GM | BoD | CGC | AC | CC | RC | Ch | GxB | GCEO | GCFO | GGC | GCRO | CS/WGR | |||||||||||||||||
LEGAL ENTITY MATTERS | Bodies | ||||||||||||||||||||||||||||||
c) | Acquisitions and divestitures of other long-term participations or the sale thereof, whether or not such participations are consolidated | ||||||||||||||||||||||||||||||
Note: transactions concluded solely among CSG and any of its direct or indirect subsidiaries, except when such transaction results in a significant change to the organizational structure, may be approved by the GCFO or his delegate | |||||||||||||||||||||||||||||||
> | CHF 500m | D | P | P | P | P | P | P | |||||||||||||||||||||||
> | CHF 250m < 500m | I | D | D | P | P | P | P | |||||||||||||||||||||||
> | CHF 100m < 250m | I | C | D | P | P | P | P | |||||||||||||||||||||||
up to CHF 100m | I | I | D | P | P | ||||||||||||||||||||||||||
6.2 | Establishment or closure of branches or | D | P | P | |||||||||||||||||||||||||||
Representative Offices | |||||||||||||||||||||||||||||||
6.3 | Acquisition or sale of real estate & buildings | ||||||||||||||||||||||||||||||
> CHF 25m | D | C | P | C | P/Imp | P | I | ||||||||||||||||||||||||
up to CHF 25m | I | I | D* | P/Imp | P | I | |||||||||||||||||||||||||
6.4 | Capital expenditures including investments in real estate outside the approved financial plan | ||||||||||||||||||||||||||||||
> CHF 25m | D | C | P | C | P/Imp | ||||||||||||||||||||||||||
up to CHF 25m | D* | P/Imp | |||||||||||||||||||||||||||||
6.5 | Special purpose companies | ||||||||||||||||||||||||||||||
– organization and housekeeping | D | P | I | ||||||||||||||||||||||||||||
– investments: as per above | |||||||||||||||||||||||||||||||
– capital expenditures: as per above | |||||||||||||||||||||||||||||||
18 OGR of Credit Suisse Group
B | CREDIT SUISSE GROUP | BoD | CGC | AC | CC | RC | Ch | GxB | GCEO | GCFO | GGC | GCRO | BoD | CS/WGR | ||||||||||||||
GROUP MATTERS | CSG | CSG/CS | CSG/CS | CSG/CS | CSG/CS | CS/ | Bodies | |||||||||||||||||||||
WGR | WGR | WGR | WGR | WGR | ||||||||||||||||||||||||
1 | Core Businesses | |||||||||||||||||||||||||||
1.1 | Mission & strategy of the Group, CS and WGR | D | C | P/Imp | P/Imp | P | P | P | D | P/Imp | ||||||||||||||||||
2 | Group Policies & Instructions | |||||||||||||||||||||||||||
2.1 | Group policies and instructions | D | D | D | D | P/Imp | ||||||||||||||||||||||
(e.g. legal, tax, risk, finance, IT) | ||||||||||||||||||||||||||||
2.2 | Internal Audit Regulations | I | D | P | I | C | P | |||||||||||||||||||||
3 | Business & Financial Plans | |||||||||||||||||||||||||||
3.1 | Business & Financial Plans of the Group, CS and WGR | D | C | P/Imp | P/Imp | P | D | P/Imp | ||||||||||||||||||||
3.2 | Establishment of performance targets in accordance | C | D | P | P/Imp | P/Imp | ||||||||||||||||||||||
with mission and strategy | ||||||||||||||||||||||||||||
3.3 | Performance monitoring | I | I | resp | resp | resp | resp | I | resp | |||||||||||||||||||
3.4 | Allocation of profits; funding of CSG dividend | I | C | D | P | P/Imp | P to GM | P | ||||||||||||||||||||
4 | Risk Management | |||||||||||||||||||||||||||
4.1 | Overall ERC limits for the Group, CSG, CS and WGR | D | P | C | P | P | P | D | P | |||||||||||||||||||
4.2 | Approval of illiquid investment risk limit | D | I | I | I | P | P | |||||||||||||||||||||
4.3 | CSG consolidated country limits if exceeding: | D (CSG | I | I | P | P | ||||||||||||||||||||||
RC only) | ||||||||||||||||||||||||||||
for N3 countries USD 2'500m | ||||||||||||||||||||||||||||
for N4 countries USD 2'000m | ||||||||||||||||||||||||||||
for N5 countries USD 1'000m | ||||||||||||||||||||||||||||
for N6 countries USD 800m | ||||||||||||||||||||||||||||
for N7 and N8 countries USD 400m |
OGR of Credit Suisse Group 19
B | CREDIT SUISSE GROUP | BoD | CGC | AC | CC | RC | Ch | GxB | GCEO | GCFO | GGC | GCRO | BoD | CS/WGR | ||||||||||||||
GROUP MATTERS | CSG | CSG/CS | CSG/CS | CSG/CS | CSG/CS | CS/ | Bodies | |||||||||||||||||||||
WGR | WGR | WGR | WGR | WGR | ||||||||||||||||||||||||
5 | Mergers, Acquisitions, Divestitures, Capital Expen-ditures, Other Participations and Related Transactions by CS, WGR and allocated subsidiaries | |||||||||||||||||||||||||||
5.1 | a) | Formation and Liquidation of subsidiaries(total commitment) | ||||||||||||||||||||||||||
Note: A share capital increase requires approval by the GM of the subsidiary or as otherwise required by applicable local law | ||||||||||||||||||||||||||||
b) | Mergers, acquisitions, divestitures of subsidiariesor assets constituting a business that involve a third party (total commitment or sales price) | |||||||||||||||||||||||||||
c) | Acquisitions and divestitures of other long-termparticipations, whether or not such participations are consolidated (or the sale thereof) | |||||||||||||||||||||||||||
Note: These approval authorities are subject to exemptions for intra group transactions as per applicable LE OGR | ||||||||||||||||||||||||||||
> CHF 500m | D | P | P | P | P | P | P | D | See | |||||||||||||||||||
CS/WGR | ||||||||||||||||||||||||||||
up to CHF 500m | I | I | I | I | See | OGR | ||||||||||||||||||||||
CS/WGR | ||||||||||||||||||||||||||||
OGR | ||||||||||||||||||||||||||||
5.2 | CSG Guarantees for subsidiaries* | |||||||||||||||||||||||||||
> CHF 500m/unlimited | D | P | P | P | P/Imp | P | P | P | ||||||||||||||||||||
> CHF 150m < 500m | I | I | D | P | P/Imp | P | P | P | ||||||||||||||||||||
up to CHF 150m | I | D | P/Imp | P | P | P | ||||||||||||||||||||||
regulatory required keep-well letters | I | D | P | P | ||||||||||||||||||||||||
5.3 | CSG Comfort letters for subsidiaries | I | D | P/Imp | P | P |
20 OGR of Credit Suisse Group
B | CREDIT SUISSE GROUP | BoD | CGC | AC | CC | RC | Ch | GxB | GCEO | GCFO | GGC | GCRO | BoD | CS/WGR | ||||||||||||||
GROUP MATTERS | CSG | CSG/CS | CSG/CS | CSG/CS | CSG/CS | CS/ | Bodies | |||||||||||||||||||||
WGR | WGR | WGR | WGR | WGR | ||||||||||||||||||||||||
5.4 | Capital expenditures of CS and WGRincluding investments in real estate1)outside the approved financial plans | |||||||||||||||||||||||||||
> CHF 250m | D | P | P | P | P | P | ||||||||||||||||||||||
> CHF 100m < CHF 250m | I | C | D | P | P | P | ||||||||||||||||||||||
< CHF 100m | D* | |||||||||||||||||||||||||||
1)does not include investments in real estate forpure investment purposes | ||||||||||||||||||||||||||||
6 | Joint Ventures and alliances | |||||||||||||||||||||||||||
6.1 | Strategic JVs at group or CS/WGR level beyondthe scope approved in the strategic business plans | D | C | P | P | D | P | |||||||||||||||||||||
7 | Compensation | |||||||||||||||||||||||||||
7.1 | Approval of compensation principles | D | P | C | P | P | R | P | ||||||||||||||||||||
7.2 | Compensation Plans | D | C | P | P | P | ||||||||||||||||||||||
7.3 | For details on approval thresholds regardingcompensation decisions see CompensationCommittee Charter. | |||||||||||||||||||||||||||
8 | CSG as Shareholder | |||||||||||||||||||||||||||
8.1 | Nomination of members of the Board of Directors ofCS and WSIC | D | P | P | P | P to GM | ||||||||||||||||||||||
8.2 | Nomination of members of the Board of Directors of otherdirectly held subsidiaries or major indirect subsidiaries | I | I | D* | ||||||||||||||||||||||||
8.3 | Nomination of external auditors | D | P | P | P | C | P | P | ||||||||||||||||||||
8.4 | Dividends from direct subsidiaries (see 3.4) | |||||||||||||||||||||||||||
8.5 | Amendments to Articles of Association of majordirect subsidiaries | |||||||||||||||||||||||||||
– purpose clause | D | P | P | P | P | P | P to GM | P | ||||||||||||||||||||
– capital (see 4.1) | ||||||||||||||||||||||||||||
– other amendments | C | P | P | P to GM | P |
OGR of Credit Suisse Group 21
B | CREDIT SUISSE GROUP | BoD | CGC | AC | CC | RC | Ch | GxB | GCEO | GCFO | GGC | GCRO | BoD | CS/WGR | ||||||||||||||
GROUP MATTERS | CSG | CSG/CS | CSG/CS | CSG/CS | CSG/CS | CS/ | Bodies | |||||||||||||||||||||
WGR | WGR | WGR | WGR | WGR | ||||||||||||||||||||||||
9 | Supervision & Reporting | |||||||||||||||||||||||||||
9.1 | Financial Reporting | |||||||||||||||||||||||||||
— | Monthly Management Reporting | I | I | resp | I | I | ||||||||||||||||||||||
— | Quarterly Management Reporting and Quarterly External Reporting | I | C | I | C | resp | C | C | ||||||||||||||||||||
— | Annual Financial Reporting including Annual Report and Form 20-F | D | C | I | C | resp | C | C | ||||||||||||||||||||
— | Additional Financial Reporting as appropriate | I | I | I | C | resp | I | I | ||||||||||||||||||||
9.2 | Risk Reporting | |||||||||||||||||||||||||||
— | Quarterly Risk Report | I | I | I | I | I | I | resp | ||||||||||||||||||||
— | Significant Risk Reports to Regulators | I | I | I | C | C | I | I | resp | |||||||||||||||||||
9.3 | Legal, Compliance and Regulatory Reporting | |||||||||||||||||||||||||||
— | Report on significant legal, compliance, disciplinary and regulatory matters | I | I | I | I | resp | ||||||||||||||||||||||
— | Bank Law Reports and other significant Reports to Regulators | I | I | I | I | I | resp | I | ||||||||||||||||||||
10 | External Relations | |||||||||||||||||||||||||||
10.1 | Delegation of group representatives into important commissions or organisations | C | D | P | P | P | ||||||||||||||||||||||
10.2 | Investor relations & rating agencies | I | I | C | resp | |||||||||||||||||||||||
10.3 | Public relations Group matters (delegated to COO function of CS) | I | I | C | P | |||||||||||||||||||||||
10.4 | Branding Branding Strategy (delegated to COO function of CS) | I | C | P | P | |||||||||||||||||||||||
22 OGR of Credit Suisse Group
ANNEX B – CORPORATE BODIES OF CREDIT SUISSE GROUP
OGR of Credit Suisse Group 23
CREDIT SUISSE GROUP
Paradeplatz 8
8070 Zurich
Switzerland
www.credit-suisse.com