At 31 December 2010, the Banca IFIS Group S.p.A. remains controlled by La Scogliera S.p.A. and is made up of the parent company, Banca IFIS S.p.A. and the wholly-owned subsidiary, IFIS Finance Sp. Z o. o., a Polish factoring company.

The types of related parties, as defined by IAS 24, that are relevant for the Banca IFIS Group include:

- the parent company;

- managers with strategic responsibilities;

- close relatives to managers with strategic responsibilities and the companies controlled by (or associated to) them or their close relatives.

Here follows information on the remuneration paid to Directors with strategic responsibilities, together with information on transactions undertaken with the different types of related parties.

1. Information on remuneration for Managers with strategic responsibilities

The definition of Managers with strategic responsibilities, as per IAS 24, includes all subjects that have the power and the responsibility, either direct or indirect, to plan, manage and control Banca IFIS’s activity. This also includes the bank’s Directors (executive and non-executive).

In compliance with the provisions of Bank of Italy Circular no. 262 of 22 December 2005 (as updated on 18 November 2009), managers with strategic responsibilities also include the members of the Board of Statutory Auditors.

Managers with strategic responsibilities

Short-term employee benefits

Post employment benefits

Other long-term benefits

Termination benefits

Share-based payments

3.095

-

-

41

80

2. Information on related party transactions

Items

Parent company

Managers with strategic responsibilities

Other related parties

Total

Due from customers

1,821

-

395

2,216

Other assets

1,368

-

-

1,368

Total assets

3,189

-

395

3,584

Due to customers

-

715

32,339

33,054

Total liabilities

-

715

32,339

33,054

Commitments and guarantees granted

-

-

--

-

Income

185

14

5

204

Expenses

216

21

1,132

1,369

During 2009, the following related party transactions took place or were carried on:

  • The current account relationship with the parent company, La Scogliera S.p.A., continued. The balance at 31 December 2010 represents a receivable Banca IFIS has with La Scogliera S.p.A. for an amount of 1,821 thousand Euro. Transactions with La Scogliera S.p.A. are governed by market conditions. In addition, Banca IFIS leased a part of its former Headquarters (until 2005) to La Scogliera S.p.A. This contract means Banca IFIS receives annual rental fees of 46 thousand Euro, plus VAT. This price is based on market conditions. Finally, in 2010, 215 thousand Euro was paid to the parent company for staff secondment costs.

  • Banca IFIS, together with the parent company, La Scogliera S.p.A., opted for the application of group taxation (tax consolidation) in accordance with articles 117 et seq of Presidential Decree no. 917/86. Infragroup transactions were regulated by means of private written agreements between the parties, signed in the month of May 2010. These agreements are of a three-year validity. Banca IFIS has chosen La Scogliera S.p.A.’s site as its domicile for taxation purposes for notifications of acts and regulations relative to the tax period for which this option has been applied. With this application in force, Banca IFIS’s taxable income is transferred to La Scogliera S.p.A. who is responsible for calculating overall group income. Following this decision, Banca IFIS recorded under Other assets at 31 December 2010 a receivable due from the parent company for 1,368 thousand Euro. This amount takes into account the offsetting of the parent company’s tax losses in accordance with procedures set out in the regulations and to specific agreements drawn up between companies of the group.

  • At 31 December 2010 ordinary current accounts were open with an overall debit balance for the Bank of 715 thousand Euro with the counterparty being a number of managers with strategic responsibilities. The conditions applied are in line with market conditions.

  • Banca IFIS has sublet part of a property to a manager with strategic responsibilities. The contract envisages the payment of lease fees of 13 thousand Euro plus VAT per annum. This price is based on market conditions.

  • Ordinary factoring activities were carried on, involving the full definitive purchase of receivables from a non-related party against a credit risk with a company controlled by a member of the Board of Directors; Banca IFIS’s exposure at 31 December 2010 equalled 155 thousand Euro.

  • Routine factoring continued on behalf of a company managed by a close relative of an executive director of the Board; the exposure of Banca IFIS at 31 December 2010 was 240 thousand Euro.

  • In previous financial years restricted deposits have been opened by a company controlled by a member of the Board of Directors. In total, the bank’s payable balance to this counterparty amounts to 32,339 thousand Euro at 31 December 2010.

In addition to the above, it should be noted that the Rendimax Savings Account has been opened by some parties considered related parties. However, these deposits do not involve returns different to the standard ones.