IOBSP

An IOBSP (intermédiaire en opérations de banque et en services de paiement, or banking and payment services intermediary) carries out an activity defined by article L. 519-1 of the French Monetary and Financial Code: presenting, offering or helping to conclude banking transactions or payment services, or carrying out any preparatory work and advice for them, on a regular basis and for remuneration. Article R. 519-4 divides IOBSPs into four categories: broker, acting under a mandate from the client; exclusive agent of a single institution; non-exclusive agent of several institutions; and agent of an intermediary. An IOBSP registers on the single register of intermediaries and proves its professional competence. The ACPR (Autorité de contrôle prudentiel et de résolution) supervises this population, which numbered nearly 30,000 firms in 2018. Two rules concern a company seeking financing. The distribution chain is limited to two intermediaries between the client and the institution (article L. 519-2). The IOBSP’s remuneration is agreed in writing before any preparatory work and advice (article L. 519-26). When a third party presents your file to lenders, check its registration, the category in which it is registered and who pays it, because an agent of an institution acts on behalf of that institution.

A company with €180m of revenue is seeking €35m to finance an acquisition. A firm offers to present the file to several lenders. Before sending it the accounts, the finance director checks that the firm is registered in the broker category and signs an engagement letter that sets a fee of 0.8% of the amount financed, payable on disbursement.

• The intermediary’s registration and its category: broker or agent.
• A written fee agreement signed before any preparatory work.
• The identity of the party that pays the intermediary.
• The number of intermediaries between you and the lender, limited to two.