Charlotte GAUCHON
Penalties for unlawful direct marketing of banking and financial services: civil and criminal liability
By Charlotte GAUCHON30 June 2025Canvassing is an activity governed by a strict set of rules designed to protect savers and investors. When these rules are not complied with, the consequences can be particularly serious for canvassers, but also for the institutions that employ them. Far from being a simple administrative irregularity, illegal canvassing exposes its perpetrators to an arsenal of civil, criminal and disciplinary penalties. It is therefore essential to have a clear understanding of the general rules governing canvassing by banks and financial institutions if you are to appreciate the extent of the risks involved. This article explains the nature and scope of these penalties. Civil penalties for unlawful canvassing In addition to criminal prosecution, failure to comply with canvassing rules can have significant civil consequences. The main aim of these is to compensate the person being canvassed for the loss suffered and to render ineffective any transactions entered into in breach of the law. Liability may be...
The Banque de France: historical development and current legal framework
Banking and securities lawThe French monetary institution has been in existence for over two centuries. Its history reflects France's political, economic and monetary transformations. Today, as part of the European System of Central Banks, it retains a unique legal status that merits examination. 1. From its creation in 1800 to European integration The origins of the...The professional duties of mortgage lenders and intermediaries
Mortgages, Credit and consumer lawA home loan is often the biggest financial commitment in a consumer's life. This complex operation is logically accompanied by a strict regulatory framework that imposes precise obligations on credit professionals, whether lenders or intermediaries. The aim of these rules is to protect the individual borrower and to...The major French cooperative banking networks: organisation and specific features
Credit unions, Banking and stock exchange lawIn the French banking landscape, three major cooperative networks stand out for their size and unique history. Far from being mere alternatives to traditional commercial banks, these establishments now account for "two-thirds of bank financing for the French economy", as Nicolas Théry, Chairman of Crédit Mutuel, points out. Every...Legal classification of syndicated loans and sub-participations: a legal labyrinth
Syndicated credit, Credit and consumer lawBetween banking pragmatism and legal theories, syndicated loans and sub-participation transactions navigate a grey area. Their classification remains a headache for the courts and legal doctrine. Here is an overview of the debates and recent developments. 1. Syndicated credit: an elusive qualification A number of banks, a variety of...Enforcement of bank del credere: conditions and limits
Banking and stock exchange law, DucroireCommercial transactions involve a permanent risk: the insolvency of the debtor. The bank del credere, an underestimated guarantee mechanism, offers valuable protection against this risk. But this security is not without conditions and limits. The concept of insolvency in del credere Insolvency is at the heart of bank del credere. Contrary to popular belief...Joint accounts: the shared art of banking management
Bank account, Banking and stock market lawIn the banking world, accounts are not always the business of a single holder. Couples, partners, heirs or simple co-investors can share ownership of a bank account. In addition to the general rules for opening and operating a bank account, this multiple ownership configuration is far from trivial and involves a range of legal mechanisms...Legal value and sanctions of banking ethics rules
Conflicts of interest, Banking and securities lawNavigating the jungle of banking ethics rules is no easy task. Between the codes approved by the Minister for the Economy and simple professional recommendations, it is difficult for a bank customer to find his way around. These rules are part of a wider framework of bankers' responsibilities. Here is an overview...Governance and internal organisation of the Banque de France
Banking and securities lawThe Banque de France has a unique institutional architecture. Its recent development reflects its integration into the European System of Central Banks (ESCB) and the adaptation of its governance to European requirements. Management bodies Changes in the Monetary Policy Council The Monetary Policy Council (Conseil de la politique monétaire - CPM), created by the...Advertising and information on home loans
Mortgages, Credit and consumer lawTaking out a mortgage is often the project of a lifetime. The opacity that has long characterised this sector has led the legislator, notably through the reform of home credit and your rights, to impose strict rules to protect borrowers. Advertising and pre-contractual information are at the heart of...Central bodies in cooperative banking networks: role and powers
Credit unions, Banking and stock exchange lawIn the complex architecture of the French cooperative banking networks, the central bodies occupy a pivotal position. These entities ensure the cohesion and strategic steering of banking groups whose decentralised structure might seem incompatible with modern prudential requirements. The legal uniqueness of these bodies is based on their dual role of...The euro and its impact on leasing contracts
Leasing, Credit and consumer lawA recurring concern for companies when the euro was introduced was that of current leasing contracts. These contracts, which are executed successively over several years, seemed to be particularly exposed to currency turbulence. Twenty years on, these questions are still relevant when analysing the legal mechanisms applicable...Bank sub-participation: a hidden risk transfer mechanism
Syndicated credit, Credit and consumer lawIn the world of structured finance, bank sub-participation operates in the shadows. Unlike direct syndication, where all the lenders sign the contractual documentation, this mechanism allows a bank to transfer all or part of its credit risk to other institutions, often without the borrower's knowledge. 1....Syndicated loans: mechanisms and legal issues
Syndicated credit, Credit and consumer lawMajor property, industrial or infrastructure projects require colossal amounts of financing. A single bank can rarely take them on alone. This is where syndicated loans come in. Definition and typology of syndicated loans Definition and legal framework A syndicated loan is a transaction in which several banks join forces to grant a single loan....Specialised cooperative structures: cooperative banks and mutual guarantee companies
Credit unions, Banking and stock exchange lawThe financial sector is home to cooperative structures with a variety of legal forms. In addition to the major networks such as Crédit Agricole and Banques Populaires, two little-known models deserve attention: cooperative banks and mutual guarantee companies. These structures are governed by specific rules and operate...Transfer, assignment and fraud exception in documentary credits
Documentary credit, Credit and consumer lawIn international trade, the documentary credit is a powerful tool for securing payments. Its strength lies in its independence from the underlying commercial contract. But what happens when the exporter wishes to mobilise the credit before it has even been realised? The circulation of documentary credits is governed by specific rules...Documents and compliance in documentary credits: the decisive examination criterion
Documentary credit, Credit and consumer lawA poorly checked documentary credit can turn a promised international transaction into a legal nightmare. Examination of the documents is the critical stage where everything can come to a head. In my practice as a lawyer specialising in international banking law, this moment of verification crystallises the tensions between importers, exporters and banks. A minor discrepancy in...Legal relations in documentary credits: who owes what to whom?
Documentary credit, Credit and consumer lawIn international commercial transactions, the documentary credit offers valuable security to the parties. This payment technique is based on a complex network of obligations between buyer, seller and banks. Let's untangle these legal relationships and their practical implications. Relationship between buyer and seller The buyer (principal) undertakes to open a documentary...The documentary credit: mechanism and fundamental principles
Documentary credit, Credit and consumer lawIn international trade, payment is often the nerve centre of a transaction. The importer fears paying without receiving the goods ordered. The exporter fears delivery without payment. The documentary credit solves this equation by offering a mutual guarantee to both parties. This legal and financial instrument, a pillar of the...Evolution and changes in cooperative banks: between the historical model and the universal bank
Credit unions, Banking and stock exchange lawThe metamorphosis of the cooperative banking sector is currently being examined by lawyers and economists alike. From a model based on community solidarity and mutual aid to major players in the global financial system, cooperative banks have undergone a remarkable evolution while maintaining certain distinctive legal features. The origins of the cooperative banking model The...The different applications of banker's drafts in practice
Banking and stock exchange law, DucroireIn the world of bank guarantees, del credere holds a special place. This payment guarantee offered by a credit institution is a valuable but little-known tool for securing commercial transactions. The diversity of forms of del credere Bank del credere is defined as a guarantee by which a credit institution guarantees the payment...
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