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Brokerage reform amended by the Senate

2021-02-16T20:07:24.423Z


The Senate approved at first reading on Tuesday a reform of insurance and banking brokerage, not without having amended this text which provides for the creation of professional associations to better supervise practices within this sector. Read also: France: green light from the National Assembly for a brokerage reform This text, "very technical" by the admission of some senators and which conc


The Senate approved at first reading on Tuesday a reform of insurance and banking brokerage, not without having amended this text which provides for the creation of professional associations to better supervise practices within this sector.

Read also: France: green light from the National Assembly for a brokerage reform

This text,

"very technical"

by the admission of some senators and which concerns a total of 56,000 professionals, was adopted by show of hands in public session.

It intends to remedy a series of shortcomings observed in recent years and thus better protect consumers.

To do this, it provides for the creation of professional associations, to which brokers will be required to join and which will be responsible for carrying out verification and support missions for these intermediaries in insurance and banking.

The result of a bill from the LREM group, very largely inspired by government work carried out under the PACTE law, this mechanism was adopted at the end of January by the National Assembly at first reading.

The text adopted Tuesday by the senators however includes several amendments.

One provides for entrusting Orias, the body responsible for registering brokers, with the task of ensuring the

"good repute"

of the managers and employees of brokerage firms, that is to say to ensure the absence of criminal sanctions against them.

Another amendment allows future professional associations to issue recommendations to their members, in order to promote good practices within the sector.

Supervise telephone canvassing

The senators also adopted amendments aimed at regulating unsolicited telephone solicitation for insurance contracts, notably providing for an obligation to keep records of sales calls for a period of two years.

In expansion for several years, the brokerage sector remains little controlled by the Prudential Control and Resolution Authority, the French supervisor of banking and insurance.

This authority

"carries out 70 checks per year,"

Senator Jean-François Husson recalled on Tuesday.

Brokerage brings together a very large number of players, very diverse and very fragmented, most of them being very small companies, or even independent workers.

Problem, the image of the sector has been tarnished in recent months by the use by some of dubious commercial practices, such as false allegations, abusive telephone canvassing, breaches of the duty of information and advice or even the lack of customer consent to the signing of the contract.

Source: lefigaro

All business articles on 2021-02-16

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