Tax & Finance

#ECOT2606963AOrder of March 24, 2026, on the Protection of Funds Received by Credit Managers

🇫🇷France··Other·Medium Impact·View source ↗

AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.

🇬🇧 English

This law mandates credit managers in France to safeguard borrowers' funds by storing them in separate bank accounts. It also allows credit managers to outsource fund management to licensed third parties, with strict rules to ensure transparency and fund protection. This affects credit managers, buyers, and borrowers in the credit sector and requires immediate compliance with operational adjustments.

AI-generated summary. May contain errors. Refer to official sources for legal decisions.

Key Changes

  • Credit managers must keep borrowers' funds in separate bank accounts.
  • Allows outsourcing of fund management to authorized third parties.
  • Requires adherence to strict fund protection and transparency rules.

Obligations

What this law requires

high

Open and maintain a separate dedicated bank account with an approved credit institution in an EU Member State for borrower funds held on behalf of credit buyers, with the account title clearly indicating the purpose of deposited funds

Credit managers subject to this Order
operational
high

Demonstrate compliance with separate account requirements to the Autorité de contrôle prudentiel et de résolution upon request at any time

Credit managers subject to this Order
reporting
medium

Provide minimum six-month notice before closing the separate bank account

Credit managers subject to this Order
operational
high

Restrict separate account operations to debits and credits only for borrower fund receipt and transfer to credit buyers or overcharged borrowers; prohibit payment cards, cash withdrawals, and fee deductions

Credit managers subject to this Order
prohibition
high

Submit a draft separate account agreement to the Autorité de contrôle prudentiel et de résolution as certification for regulatory approval

Credit managers subject to this Order
reporting

Affected Parties

Credit managersBorrowers

Tags

fund protection,credit management,outsourcing regulation