Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 132

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 132
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management and compliance |

3.3.1 Conduct with customers In this section we cover how Santander manages the following IRO:

| R  |     | Potential losses due to claims or a reduction in the numbers of customers because of inadequate customer practices throughout their life cycle.                 |
| I- |     | Negative impact on the customer if the bank fails to provide sufficient information on the product or service they are signing up for.                          |
| I- |     | Negative impact on the customer if they do not have access to complaints channels or if, after making a complaint, the bank fails to take the necessary action. |

i. Customer conduct principles Customer conduct risk model Our customer conduct risk model approved by compliance and conduct committee, sets out the principles that underpin how we align customer engagement with our Simple, Personal and Fair culture and how we make that the products and services we offer adapt to our customers’ needs while protect their rights 69 . This model also outlines the key processes, instruments and governance that enable us to mitigate and manage customer conduct risk at every stage of our relationship with them (product and service design, sales and post-sales).

Model principles

→ Fair treatment

→ Customer-focused product and service design

→ Transparency in all customer engagement

→ Responsible sales practices

→ Responsible pricing

→ Consideration of vulnerable customers or those in special circumstances, and prevention of overindebtedness

→ Personal data processing

→ Complaints handling

→ Financial education

→ Safeguarding consumer assets against fraud and misuse

Key processes

→ Approval and ratification of products and services (Product and service approval policy)

→ Customer conduct training

→ Sales oversight, with special focus on the classification and suitability of products and services; advertising and transparency at the point of sale; and monitoring

→ Remuneration of sales and support teams (Remuneration policy)

→ Post-sales oversight, with special focus on recoveries, fraud management and complaints handling (Customer service and dissatisfaction management policy)

→ Managing vulnerable customers and preventing overindebtedness (Vulnerable customers and prevention of overindebtedness policy)

Governance and remit

→ Our Product governance and consumer protection area, part of the Compliance and conduct unit, develops and oversees how we follow our customer conduct risk model

→ The board of directors oversees the Product and service approval policy, while local and corporate product governance forums assess and approve our products and services

→ The board is also responsible for the Group Remuneration policy, while the remuneration and risk committees