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Broker in banking operations and payment service

1. Defining the activity

The bank and payment services broker ("broker") is a merchant registered in the register of trade and companies, whose mission is to present, propose or assist in the conclusion of bank transactions or payment services.

As part of his mandate to his client, the broker will compete with the various credit institutions that he has been able to approach, in advance, in order to obtain the lowest rates.

It will also be able to negotiate the services necessary for project optimization with banks.

To go further Articles L. 519-1 to L. 519-2 of the Monetary and Financial Code.

Two degrees. Professional qualifications

a. National requirements

National legislation

Anyone wishing to practise as a broker must justify a professional capacity in banking operations and payment services, the level of which is determined by the Single Register of Insurance, Banking and Finance Intermediaries ( Orias).

Thus, the professional who wishes to carry out the activity of broker as principal, will have to justify an I-IOBSP level.

To learn more about the levels of professional capacity in banking operations and payment services, it is advisable to visit the Orias .

Training

The I-IOBSP level is reached when the person is justified:

  • or a degree sanctioning higher education of a level of education II according to the Nomenclature of training levels in one of the following areas: Economics, Law and Political Science, Finance, Banking, Insurance and Real Estate, Accounting and Management
  • or a diploma issued by one of the business and management schools listed on a List determined by the Minister for Higher Education;
  • two years of executive experience in banking or payment services in the three years prior to orias registration;
  • four years of experience in banking or payment services in the five years prior to orias registration;
  • 150-hour work placement:- either with a credit institution, payment institution, insurance company, finance company or electronic money institution providing payment services,
    • or to a training organization chosen by the individual, his employer or his principal.

What to know

Training or work experience acquired in a Member State of the European Union (EU) or party to the European Economic Area (EEA) must be supplemented by a three-month adaptation course, carried out with an intermediary in operation payment services, a credit institution or a finance company in France. During the course, vocational training will have to be followed for 28 hours.

To go further Article R. 519-8 of the Monetary and Financial Code.

Costs associated with qualification

The training to be a broker pays off. For more information, it is advisable to get closer to the institutions issuing the diplomas referred to above.

b. EU or EEA nationals: for temporary and occasional exercise (Free Service)

Any national of an EU or EEA Member State, established and legally practising brokering activities in one of these states, may carry out the same activity on a temporary or casual basis in France.

However, this faculty is only open to nationals who offer real estate credit contracts as part of their brokering activity.

The person concerned will simply have to inform the Register of his State in advance, which will ensure that the information is transmitted to the French Register himself (see infra "5o). a. Inform the Single Register of the EU State or the EEA"). The latter will then proceed with its registration in France.

Note that

In addition to the steps to communicate his information to the French Single Register through the Register of his State of origin, the national will also have to undergo a 14-hour training leading to the obtaining of a specialized module relating to credit. Real estate.

To go further Articles L. 519-9, R. 519-4 and R. 519-11-2 of the Monetary and Financial Code; decree of 9 June 2016 .

c. EU or EEA nationals: for a permanent exercise (Free Establishment)

Any national of an EU or EEA state, established and legally practising brokering activities in one of these states, may carry out the same activity on a permanent basis in France.

However, this faculty is only open to nationals who offer real estate credit contracts as part of their brokering activity.

The person concerned will simply have to inform the Register of his State in advance, which will ensure that the information is transmitted to the French Register himself (see infra "5o). a. Inform the Single Register of the EU State or the EEA"). The latter will then proceed with its registration in France.

Note that

In addition to the steps to communicate his information to the French Single Register through the Register of his State of origin, the national will also have to undergo a 14-hour training leading to the obtaining of a specialized module relating to credit. Real estate.

To go further Articles L. 519-9, R. 519-4 and R. 519-11-2 of the Monetary and Financial Code; decree of 9 June 2016 .

Three degrees. Conditions of honorability, ethical rules, ethics

The broker must behave with loyalty and act in the best interests of his clients. It is also required to comply with conditions of honour liable to the profession and in particular not to have been convicted for less than ten years for crimes, money laundering, corruption or tax evasion, or removal from the functions of public or ministerial officer.

In addition, the professional has an obligation to inform and advise his clients; it will be required to provide clear and accurate information relating to banking transactions and payment services.

There is also an obligation of loyalty to the professional in the context of the mandates that bind him to credit institutions, finance companies or payment institutions.

To go further Articles L. 500-1, L. 519-3-3 and R. 519-19 of the Monetary and Financial Code.

It's a four-degree one. Registration requirement and insurance

a. Request registration on the Orias register

The person concerned who wishes to practise in France as a broker offering real estate credit contracts must be registered in the Single Register of Insurance, Banking and Finance Intermediaries (Orias).

Supporting documents

The registration is preceded by the opening an account Orias website and sending a file containing all the following supporting documents:

  • A KBIS extract less than three months old that mentions the activity of brokering in banking operations and payment services;
  • a document justifying his professional capacity as specified in paragraph "2." a. Training":- or a full copy of the internship booklet,
    • either a certificate of functions related to the development, proposal or awarding of real estate credit contracts, where the person concerned is an EU or EEA national,
    • either a certificate of functions related to the conduct of bank transactions or payment services,
    • i.e. a certificate of the three-month adjustment course, supplemented by a 28-hour training course when the experience is acquired in an EU or EEA state,
    • either a copy of the diploma, certificate or title issued by an EU or EEA state and recognised as equivalent to diplomas and titles in one of the classifications of the Specialty Training Nomenclature 122, 128, 313 or 314;
  • In the event of cashing in funds, a certificate of financial guarantee;
  • Settlement of registration fees
  • the declaration of the proposed bank transactions among those listed in Article 1 of the 2016 Order to 11.

What to know

Supporting documents must be written in French or translated by a certified translator, if necessary.

Renewal of registration

The registration procedure at the Orias must be renewed every year and with any change in the person's professional situation. In the latter case, the broker will have to keep the Orias informed one month before the change or within one month of the amending event.

The renewal application must take place before January 31 of each year and must include:

  • Settlement of registration fees
  • in the event of cash collection, a certificate of professional civil liability covering the period from 1 March of year N to 28 February of year No. 1, a certificate of financial guarantee covering the period from 1 March of year N to 28 February of Year No. 1.

What to know

The certificate templates are directly available on the Orias .

Cost

The registration fee is set at 30 euros payable directly online on the Orias website. In the event of non-payment of these charges, orias sends a letter informing the person concerned that it has a period of thirty days from the date of receipt of the mail to pay the sum.

Failing to settle this amount:

  • The application for a first registration to the Orias will not be taken into account;
  • the broker will be removed from the register when it was a renewal application.

Exception

The orias-registered broker who engages in this activity as an incidental activity is exempt from registration and does not exceed the following activity thresholds per year:

  • for bank transactions or payment services, the total number of 20 transactions;
  • 200,000 euros of loans granted or payment services provided or carried out by the broker.

To go further Articles L. 546-1, L. 546-2 and R. 519-2 of the Monetary and Financial Code.

b. Obligation to take out professional liability insurance

As part of his business, the broker is required to take out professional liability insurance covering the damage he could cause to others in the course of his profession.

To go further Articles L. 519-3-4 and R. 519-16 of the Monetary and Financial Code.

c. Obligation to take out financial guarantee insurance

Any person practising as a broker, as long as he cashes funds, even on a casual basis, is required to take out financial guarantee insurance, assigned to the repayment of these funds to his policyholders.

The minimum amount of the financial guarantee must be at least 115,000 euros, and cannot be less than double the average monthly amount of funds collected by the broker, calculated on the basis of funds collected in the last twelve months prior to the month of subscription date or renewal of the bond commitment.

To go further Article R. 519-17 of the Monetary and Financial Code.

d. Obligation to undergo continuing vocational training

Brokers who perform functions related to real estate credit contracts must undergo ongoing vocational training to update their knowledge and skills, taking into account changes in legislation or regulations.

This training, which has a minimum duration of 7 hours, must be completed every year.

e. Criminal sanctions

Any person interested in complying with any of the obligations under paragraphs 3 and 4 is liable to a prison sentence of two years and/or a fine of 6,000 euros.

The fact that the person concerned creates confusion or makes it appear that he is registered on the Orias register in another category is punishable by a prison sentence of three years and/or a fine of 375,000 euros.

To go further Articles L. 546-3 and L. 546-4 of the Monetary and Financial Code.

Five degrees. Qualification recognition procedures and formalities

What to know

Qualification recognition procedures and formalities apply only to EU or EEA nationals who offer real estate credit contracts as part of their brokering activity.

a. Inform the Single Register of the EU State or the EEA

Competent authority

A national of an EU or EEA Member State who was a broker in that state and who wishes to practise as a self-service or self-establishment in France must first inform the single register of his or her state.

Procedure

The national will have to provide the following information to the Single Register of his or her state:

  • His name, address and, if applicable, registration number;
  • The Member State in which it wishes to carry out its activity in the event of a free service or to establish itself in the event of a free establishment;
  • The category of bank intermediary to which he belongs, namely that of broker;
  • relevant branches, if necessary.

Time

The Single Register of the EU State or EEA, to which the national has notified his intention to operate in France, has one month to provide the Orias with the information relating to him.

The national will then be able to start his brokering activity in France within one month after the Single Register of his State has informed him of the communication made to the Orias.

To go further Articles L. 519-9 of the Monetary and Financial Code and Article 32 of the 2014/17/EU Directive of 4 February 2014 .

b. Remedies

French assistance centre

The ENIC-NARIC Centre is the French centre for information on academic and professional recognition of diplomas.

Solvit

SOLVIT is a service provided by the National Administration of each EU member state or party to the EEA agreement. Its aim is to find a solution to a dispute between an EU national and the administration of another of these states. SOLVIT intervenes in particular in the recognition of professional qualifications.

Conditions

The person concerned can only use SOLVIT if he establishes:

  • that the public administration of one EU state has not respected its rights under EU law as a citizen or business of another EU state;
  • that it has not already initiated legal action (administrative action is not considered as such).

Procedure

The national must complete a online complaint form .

Once his file has been submitted, SOLVIT contacts him within a week to request, if necessary, additional information and to verify that the problem is within his competence.

Supporting documents

To enter SOLVIT, the national must communicate:

  • Full contact details
  • Detailed description of his problem
  • all the evidence in the file (for example, correspondence and decisions received from the relevant administrative authority).

Time

SOLVIT is committed to finding a solution within ten weeks of the day the case was taken over by the SOLVIT centre in the country in which the problem occurred.

Cost

Free.

Outcome of the procedure

At the end of the 10-week period, SOLVIT presents a solution:

  • If this solution resolves the dispute over the application of European law, the solution is accepted and the case is closed;
  • if there is no solution, the case is closed as unresolved and referred to the European Commission.

More information

SOLVIT in France: General Secretariat for European Affairs, 68 rue de Bellechasse, 75700 Paris ( official website ).