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Governance

The governance system

CADES’ directors are appointed by the supervisory authorities. The Chairman of the Board of Directors is appointed by Decree of the President of the Republic, upon the joint proposal of the Minister of the Economy, Finance and Industry and the Ministers in charge of social security.

Until 2010, the Board of Directors was composed solely of representatives of the State. The Board determines CADES’ borrowing programme and may decide to delegates all powers to the Board’s chairman. The Supervisory Committee issues an opinion on CADES’ annual activity report and may be consulted on various matters by the Board of Directors. The committee is composed of members of Parliament (two deputies and two senators), the chairman of the CNSS (the national social security funds) and representatives of the State. This committee has been successively chaired by Mr. Jacques Oudin, senator, Mr. Marc Laffineur, deputy, Mr. Adrien Gouteyron, Vice-chairman of the Senate , Mr. Jean-Jacques Jégou, senator and Mrs Valerie RABAULT, deputy.

CADES’ organization and operational framework comply with the requirements that apply to financial institutions. Market activities (front office) and post-trading activities (back-office) are clearly separated. Administrative management is handled by a general secretariat. In addition to its chairman, CADES had a staff of 9 as of 31 December 2016.

 

Merger of CADES and Agence France Trésor (AFT) teams in 2017

Against the background of CADES’ shortening mandate, currently set to end in 2024, the organisational restructuring announced earlier in the year has led to the combination of CADES mission with that of AFT, a government agency with national authority. While CADES remains an independent legal entity to guarantee the effectiveness of confining the social debt, its employees who are dedicated to managing the social debt and to CADES operational mission are made available to AFT.

This reform was undertaken in accordance with the legal basis of article 5, section II, of the amended government order No. 96-50 of 24 January 1996, linked to social debt redemption, and article 8 of the amended decree No.96-353 of 24 April 1996, linked to Caisse d’amortissement de la dette sociale. CADES and AFT remain distinct and independent legal entities. CADES governance, its President, Board and Supervisory Committee prerogatives remain unchanged. These authorities now oversee the conditions under which AFT completes its mission on behalf of CADES. French social debt will remain under CADES’ scope, and CADES’ funding will remain the same. The State and CADES’ signatures remain the same and debt funding programmes will be kept separate.

Two agreements were signed between the two entities:

  • a mandate agreement between CADES and AFT, which ensures State responsibility for CADES’ funding programme and its social debt service management;
  • an agreement which makes staff at CADES available to work for AFT.

These new conventions transfer operational responsibility for all of CADES’ funding activities and execution of its issuance programme to AFT. As such, AFT will operate on behalf of and for CADES, making its staff available when appropriate.

Both the AFT and CADES teams will work from the same location under a unified management team. 

 

Oversight

CADES’ accounting rules are similar to those that apply to State entities. Accordingly, receipts and disbursements are made through CADES’ paymaster and are monitored by the Cour des Comptes (the accounts of fiscal 1996 to 1999, 2000 to 2004 and 2005 to 2009 and 2010 to 2014 have been verified). CADES is also subject to the oversight of the financial controller of the Minister of the Economy, Finance and Industry.

All major decisions (e.g. affecting CADES’ budget or financial statements) must first be approved by its supervisory ministers. Its borrowing programme must be approved by the Minister of the Economy, Finance and Industry. CADES can also agree to transfer its administrative and financial management to the State.

Once a year, the government must prepare a report on CADES’ activity. This report is presented to Parliament while the Social Security Finance Bill is being examined, and is appended to this bill.

The ministerial order of 19 May 2009 specifies how the State may exercise financial oversight and control over CADES and stipulates that CADES’ Board of Directors shall set forth internal control principles, rules, limitations and authorizations in accordance with the internal control procedures observed by credit institutions.

CADES’ Board of Directors monitors compliance with these requirements and in particular with the analysis the risks associated with market activities. This ministerial order also entrusts the ex post external auditing and control of CADES’ activities to an independent auditing and control body that must submit a quarterly activity report to the Board of Directors. These measures are consistent with and strengthen the procedures that CADES as been implementing since its inception.


CADES' governance organization


Click to enlarge

 

CADES’ Board of Directors

As of the ministerial order of 10 May 2011, which was published in the Journal Officiel on 11 May 2011, in addition to the representatives of the supervisory ministers(1), the Board is composed of representatives of the Social Security bodies.

Chairman of the board
Jean-Louis REY

ACOSS (the central of social-security bodies)
Jean-Eudes Tesson, Chairman of the Board of Directors
Substitute: Jean-Claude Guéry, Member of the Board
Pierre-Yves Chanu, Vice-chairman of the Board
Substitute: Serge Cigana, Member of the Board

CNAMTS (the national health-insurance fund for salaried employees)
William Gardey, Chairman of the Board
Substitute: Yves Laqueille, Vice-chairman of the Board

CNAVTS (the national pension fund for salaried employees)
Gérard Rivière, Chairman of the Board of Directors
Substitute: Pierre Burban, Vice-chairman of the Board

CNAF (the national family allowance fund)
Jean-Louis Deroussen, Chairman of the Board of Directors
Substitute: Jean-Marie Attard, Vice-chairman of the Board

RSI (the social security regime for the self-employed)
Louis Grassi, Chairman of the Board of Directors

CCMSA (the central agricultural and social mutuality fund)
Pascal CORMERY, Chairman of the Board of Directors
Substitute: Thierry MANTEN, First Vice-chairman of the Board of Directors

Representatives of the Minister in charge of the Economy and Finances
Emmanuel Bretin, Deputy Director, French Treasury
Substitute: Thierry Grignon, Office Manager, French Treasury
Anthony Requin
, Director Agence France Trésor
Substitute: Antoine Deruennes, Deputy Director Agence France Trésor

Representatives of the Minister in charge of the Budget
Olivier Touvenin, Deputy Director, Direction générale des Finances publiques (Public Finances Directorate)
Substitute: M. Jean-Pierre Espic, Bureau Chief, Direction générale des Finances publiques

Representatives of the Minister in charge of Social Security
Thomas Fatome, Director of the Social Security Department
Substitute: Morgan Delaye, Financial Controller of Social Affairs
Marie Daudé, Deputy Director Social Security Financing, Social Security Department
Substitute: David Hoyrup, Assistant to the Deputy Director Social Security Financing, Social Security Department

Representatives of the Supervisory Board of the FRR (the pension reserve fund)
Philippe Soubirous, CGT FO
Substitute: Philippe Pihet

CADES Supervisory Committee members

- National Assembly deputies: Mrs. Valérie Rabault, Présidente of Supervasory Commitee, Mr. Bernard Accoyer
- Senators: Mr. Jean-Noel Cardoux, Mr. Francis Delattre
- Representatives of the Minister in charge of the Economy and Finances: Mr. Denis Maroin, Mr. Ramon Fernandez and Mr. François Tanguy
- Representatives of the Minister in charge of Social Security: Mrs. Marie Daudé, Mr. Thomas Fatome and Mr. Morgan Delaye
- Representatives of the Minister in charge of Agriculture: Mr. Christian Ligeard
- Member of the Cour des Comptes: Mrs. Catherine Démier
- Members of l’Inspection des Finances (the government audit bureau): Mrs. Véronique Hespel
- Members of l’Inspection Générale des Affaires Sociales (the social affairs audit bureau): Mr. Michel Laroque
- The General Secretary of the Social Security Accounts Commission: Mr. Christian Charpy
- The Chairman of the Board of ACOSS: Mr. Jean-Eudes Tesson
- The Chairman of the Board of CNAMTS: Mr. William Gardey
- The Chairman of the Board of CNAVTS: Mr. Gérard Rivière
- The Chairman of the Board of CNAF: Mr. Jean-Louis Deroussen
- The Chairman of the Commission on Occupational Accidents and Illnesses: Mr. Franck Gambelli
- The Chairman of the Board of Directors of RSI (the social security regime for the self-employed): Mr. Gérard Quevillon

Additional information