REPORT

ON THE CORPORATE GOVERNANCE AND OWNERSHIP STUCTURE

pursuant to Article 123-bis of the Legislative Decree no. 58 of February 24, 1998 (traditional management and controlo model)

Name of Issuer: "FINECOBANK S.P.A."

Website: finecobank.com

Financial year of reference of the Report: January 1, 2021 / December 31, 2021

Date of approval of the Report:

March 15, 2022

This is an English translation of the original Italian document. The original version in Italian takes precedence.

GLOSSARY .................................................................................................................................................... 5

INTRODUCTION .......................................................................................................................................... 10

  • 1. PROFILE OF THE ISSUER .................................................................................................................... 11

  • 1.1. CORPORATE GOVERNANCE MODEL ............................................................................................... 12

  • 1.1.1............................................................................................................... 14

  • 1.1.2 Board of Directors ...................................................................................................................... 14

  • 1.1.3 Board committees ....................................................................................................................... 15

  • 1.1.4 Board of Statutory Auditors ...................................................................................................... 15

  • 1.1.5 External Auditors ....................................................................................................................... 16

  • 2. INFORMATION ON OWNERSHIP STRUCTURES (PURSUANT TO ARTICLE 123-BIS, PARAGRAPH 1, TUF)

    ........................................................................................................................................................... 17

A)SHARE CAPITAL STRUCTURE (PURSUANT TO ARTICLE 123-BIS, PARAGRAPH 1, LETTER A), TUF)

.................................................................................................................................. 17

B) RESTRICTIONS ON THE TRANSFER OF SECURITIES (PURSUANT TO ARTICLE 123-BIS, PARAGRAPH

1, LETTER B) OF THE TUF) ........................................................................................................................ 18

C) SIGNIFICANT HOLDINGS IN CAPITAL (PURSUANT TO ARTICLE 123-BIS, PARAGRAPH 1, LETTER C),

OF THE TUF) .................................................................................................................................. 18

D) SECURITIES CONFERRING SPECIAL RIGHTS (PURSUANT TO ARTICLE 123-BIS, PARAGRAPH 1,

LETTER D), OF THE TUF) ........................................................................................................................... 19

E) EMPLOYEE SHAREHOLDINGS: MECHANISM FOR EXERCISING VOTING RIGHTS (PURSUANT TO

ARTICLE 123-BIS, PARAGRAPH 1, LETTER E), OF THE TUF) .................................................................... 19

F) RESTRICTIONS ON VOTING RIGHTS (PURSUANT TO ARTICLE 123-BIS, PARAGRAPH 1, LETTER F),

OF THE TUF) .................................................................................................................................. 19

G) SHAREHOLDER AGREEMENTS (PURSUANT TO ARTICLE 123-BIS, PARAGRAPH 1, LETTER G), OF

THE TUF) .................................................................................................................................. 19

H) CHANGE OF CONTROL CLAUSES (PURSUANT TO ARTICLE 123-BIS, PARAGRAPH 1, LETTER H), OF THE TUF) AND ARTICLES OF ASSOCIATION PROVISIONS ON TAKEOVER BIDS (PURSUANT TO ARTICLE 104,

PARAGRAPH 1-TER, AND 104-BIS, PARAGRAPH 1, OF THE TUF) ............................................................... 19

I) DELEGATED POWERS TO INCREASE SHARE CAPITAL AND AUTHORISATION TO PURCHASE TREASURY SHARES (PURSUANT TO ARTICLE 123-BIS, PARAGRAPH 1, LETTER M), OF THE TUF) ........... 20

L)

CODE)

MANAGEMENT AND COORDINATION (PURSUANT TO ARTICLE 2497 AND FOLLOWINGOF THE CIVIL .................................................................................................................................. 21

3.

COMPLIANCE (PURSUANT TO ARTICLE 123-BIS, PARAGRAPH 2, LETTER A) OF THE TUF) ............ 22

  • 4. BOARD OF DIRECTORS ...................................................................................................................... 24

  • 4.1 ROLE OF THE BOARD OF DIRECTORS ............................................................................................ 24

  • 4.1.1 Duties .................................................................................................................................. 24

  • 4.1.2 Competing activities ..................................................................................................................... 30

  • 4.2. APPOINTMENT AND REPLACEMENT (PURSUANT TO ARTICLE 123-BIS, PARAGRAPH 1, LETTER L),

PART 1, OF THE TUF) ................................................................................................................................. 30

4.3 TUF)

COMPOSITION (PURSUANT TO ARTICLE 123-BIS, PARAGRAPH 2, LETTER D), AND D)BIS OF THE .................................................................................................................................. 33

4.3.1 Diversity criteria and policies in the composition of the Board and the company organisation ..

.................................................................................................................................. 38

4.3.2. Maximum number of positions held in other companies ........................................................ 40

4.4 FUNCTIONING OF THE BOARD OF DIRECTORS (PURSUANT TO ARTICLE 123-BIS, PARAGRAPH 2,

LETTER D) OF THE TUF) ............................................................................................................................ 44

  • 4.5 ROLE OF THE CHAIRMAN OF THE BOARD OF DIRECTORS ............................................................ 45

  • 4.6 EXECUTIVE DIRECTORS ................................................................................................................. 47

  • 4.6.1 Managing Directors Managing Director and General Manager ............................................ 47

  • 4.6.2 The Chairman of the Board of Directors ................................................................................. 48

  • 4.6.3 Reporting to the Board of Directors by Directors/Delegated Bodies ..................................... 48

  • 4.6.4 Other executive directors ........................................................................................................... 49

  • 4.7 INDEPENDENT DIRECTORS AND LEAD INDEPENDENT DIRECTOR .................................................. 49

  • 4.7.1 Lead Independent Director ....................................................................................................... 51

  • 5. PROCESSING OF COMPANY INFORMATION ....................................................................................... 52

  • 6. BOARD COMMITTEES (PURSUANT TO ARTICLE 123-BIS, PARAGRAPH 2, LETTER D), OF THE

    TUF) .................................................................................................................................................. 55

  • 6.1 CORPORATE GOVERNANCE AND ENVIRONMENTAL AND SOCIAL SUSTAINABILITY COMMITTEE ..

    .................................................................................................................................. 57

  • 6.1.1 Composition and functioning of the Corporate Governance and Environmental and Social

    Sustainability Committee ........................................................................................................... 57

  • 6.1.2 Functions of the Corporate Governance and Environmental and Social Sustainability

    Committee .................................................................................................................................. 58

  • 6.1.3 Activities performed ................................................................................................................... 59

  • 7. SELF-ASSESSMENT AND SUCCESSION OF DIRECTORS APPOINTMENTS COMMITTEE ..................... 62

  • 7.1 SELF-ASSESSMENT AND SUCCESSION OF DIRECTORS .................................................................... 62

  • 7.2 APPOINTMENTS COMMITTEE ......................................................................................................... 63

  • 7.2.1 Composition and functioning of the Appointments Committee ............................................. 63

  • 7.2.2 Functions of the Appointments Committee .............................................................................. 64

  • 7.2.3 Activities performed ................................................................................................................... 65

  • 8. REMUNERATION OF DIRECTORS REMUNERATION COMMITTEE .................................................. 68

  • 8.1 REMUNERATION OF DIRECTORS .................................................................................................... 68

  • 8.2 REMUNERATIONCOMMITTEE ....................................................................................................... 68

  • 8.2.1 Composition and functioning of the Remuneration Committee (pursuant to Article 123-bis,

    paragraph 2, letter d), TUF) ...................................................................................................... 68

  • 8.2.2 Functions of the Remuneration Committee ............................................................................. 69

  • 9. INTERNAL CONTROL AND RISK MANAGEMENT SYSTEM - RISK AND RELATED PARTIES COMMITTEE

    ........................................................................................................................................................... 71

  • 9.1 MANAGING DIRECTOR .................................................................................................................. 84

  • 9.2 RISK AND RELATED PARTIES COMMITTEE ................................................................................... 87

  • 9.2.1 Composition and functioning of the Risk and Related Parties Committee (pursuant to Article

    123-bis, paragraph 2, letter d) of the TUF) .............................................................................. 87

  • 9.2.2 Functions assigned to the Risk and Related Parties Committee ............................................ 89

  • 9.2.3 Activities performed ................................................................................................................... 92

  • 9.3 HEAD OF THE INTERNAL AUDIT FUNCTION .................................................................................. 93

  • 9.4 ORGANISATIONAL MODEL PURSUANT TO LEGISLATIVE DECREE 231/2001 ................................ 96

  • 9.5 EXTERNALAUDITORS .................................................................................................................... 97

  • 9.6 FINANCIAL REPORTING OFFICER .................................................................................................. 98

9.7 COORDINATION OF ENTITIES INVOLVED IN THE INTERNAL CONTROL AND RISK MANAGEMENT

SYSTEM ................................................................................................................................ 100

10. DIRECTORSINTERESTS AND RELATED-PARTY TRANSACTIONS .................................................... 101

11. BOARD OF STATUTORY AUDITORS ................................................................................................. 105

11.1 APPOINTMENT AND REPLACEMENT OF STATUTORY AUDITORS .................................................. 105

11.2. BOARD OF STATUTORY AUDITORS (PURSUANT TO ARTICLE 123-BIS, PARAGRAPH 2, LETTERS D)

AND D-BIS), TUF) ................................................................................................................................ 107

  • 12. RELATIONS WITH SHAREHOLDERS ................................................................................................. 115

  • 13. SHAREHOLDERSMEETINGS (PURSUANT TO ARTICLE 123-BIS, PARAGRAPH 2, LETTER C) OF THE

    TUF) ................................................................................................................................................ 118

  • 13.1 LEGITIMATION, PROCEDURES FOR TAKING THE FLOOR AND VOTING ........................................ 118

  • 13.2 PROCEEDINGS OF SHAREHOLDINGSMEETINGS ......................................................................... 119

  • 13.3 SIGNIFICANT CHANGES IN CAPITALISATION AND COMPOSITION OF THE COMPANY STRUCTURE ...

    ................................................................................................................................ 120

  • 14. ADDITIONAL CORPORATE GOVERNANCE PRACTICES .................................................................... 121

  • 15. CHANGES AFTER THE END OF THE YEAR ....................................................................................... 122

  • 16. OBSERVATIONS REGARDING THE LETTER OF DECEMBER 3, 2021, FROM THE CHAIRMAN OF THE

    CORPORATE GOVERNANCE COMMITTEE ...................................................................................... 123

GLOSSARY

Meeting:

Shareholders:

the owners of FinecoBank shares.

Borsa Italiana:

Borsa Italiana S.p.A.

FinecoBank CFO:

the Chief Financial Officer of FinecoBank.

Civil Code:

the Italian Civil Code approved by Royal Decree no. 262 of March 16, 1942, as amended.

Code/Corporate Governance Code:

the Corporate Governance Code for listed companies approved in July 2018 by the Corporate Governance Committee and endorsed by Borsa Italiana, ABI, Ania, Assogestioni, Assonime and Confindustria. From January 1, 2021, the Corporate Governance Code was replaced by the New Corporate Governance Code.

New Corporate Governance Code:

the New Corporate Governance Code for listed companies approved in January 2020 by the Corporate Governance Committee and promoted by Borsa Italiana, ABI, Ania, Assogestioni, Assonime and Confindustria, applicable from the first financial year starting after December 31, 2020. The New Corporate Governance Code replaces the previous Corporate Governance Code approved in July 2018.

Board of Auditors:Statutory

the Board of Statutory Auditors of the Issuer.

Corporate Governance and Environmental and Social Sustainability Committee:

the board committee established in compliance with Article 4 of the Corporate Governance Code and the Supervisory Regulations on Corporate Governance, established on April 28, 2020.

Appointments Committee:

the board committee established in compliance with Articles 4 and 5 of the Corporate Governance Code and the Supervisory Regulations on Corporate Governance, established on April 28, 2020.

Remuneration Committee:

the board committee established in compliance with Articles 4 and 6 of the Corporate Governance Code and the Supervisory Regulations on Corporate Governance.

Risk and Related Parties Committee:

the board committee established in compliance with Articles 4 and 7 of the Corporate Governance Code and the Supervisory Regulations on Corporate Governance, as well as regulations on

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Finecobank S.p.A. published this content on 06 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 April 2022 11:51:04 UTC.