Reform of insurance and credit brokerage: the Constitutional Council has ruled, brokers must imperatively join an approved professional association – Savings Guide

Law n° 2021-402 of April 8, 2021 relating to the brokerage reform entered into force on April 1, 2022. It introduces the obligation for insurance brokers, brokers in banking transactions and payment services and their respective representatives to join professional associations which will be approved by the ACPR.

In short. As with CGPs, brokers must join a professional association. The latter is in charge of monitoring and ensuring compliance with the regulations of its members. Audits must be carried out with members and monitoring of mandatory training carried out. Any breach must exclude the member from the association. An appeal had been lodged concerning the application of this reform and the imposed choice of joining a professional association.

Opinion of the Constitutional Council

On October 21, 2022, the Constitutional Council rendered its decision in the context of the priority question of constitutionality (QPC) relating to the reform of brokerage and confirmed its application. Thus, the brokerage reform applicable since April 1, 2022, and in particular the compulsory membership of a professional association approved by the ACPR, is confirmed. ORIAS will not accept any (re)registration as a broker or broker representative without proof of valid membership with one of the 7 approved associations.

Reminder of the brokerage reform

As of April 1, 2022, membership of a professional association will be compulsory for all professionals wishing to register with ORIAS as brokers or agents of brokers. The requirements relating to the exercise of the broker’s activity have been reinforced in recent years with more precise and demanding regulations in terms of protecting the interests of clients. The brokerage reform passed by the French Parliament was thus thought of as a means of supporting the upskilling of all professionals.

In this context, from April 1, 2022, membership of a representative professional association approved by the ACPR will be compulsory for all professionals who register with ORIAS as brokers or broker agents after this date. Those already registered with ORIAS will have to join these new associations at the latest when renewing their registration in the first quarter of 2023.

List of associations approved by the ACPR

At its meeting on March 22, 2022, the ACPR College thus granted approval to seven associations, including six as professional associations of banking and insurance brokers:

  1. AFIB,
  2. ANACOFI
  3. CNCEF,
  4. CNCGP
  5. ENDYA,
  6. THE CGP COMPANY,
  7. VOSTRASSO (association solely as a professional association of insurance brokers).

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