Brokerage Reform
The choice was made for the insurance and credit brokerage sectors to follow the same principle for financial investment advice. Actors must subscribe to an approved professional association. The latter will be in charge of monitoring their training, but above all of their control. In view of this new legal obligation, Orias is already seeing a delay for the 2023 renewal.
ORIAS retains its role for the registration of brokers, but this year requires proof of membership of one of the seven approved professional associations. Any intermediary subject to this new obligation who does not comply with it will be deregistered from Orias, when the renewal closes on February 28, 2023. Consequently, he will no longer be able to distribute the products for which he was registered, nor collect commissions or fees for his remuneration.
With the application of the Brokerage Reform, if you are registered as an insurance broker (COA), insurance intermediary agent (MIA), broker in banking transactions and payment services (COBSP), agent intermediary in banking transactions and payment services (MIOBSP), to renew you must join one of the approved professional associations. Do not waste time taking the necessary steps (end of renewal February 28, 2023) indicates the ORIAS website.
In question, a delay in renewal requests and slower management of files in the event that Orias managers must request the production of the certificate through the intermediary. Aware of the challenges for consumer protection, product distribution and intermediation professionals themselves, Orias formally warns of the risk of seeing too many professionals not being renewed at the end of February 2023.
The president of Orias, Richard Restuccia, explains: “Professionals affected by the brokerage reform no longer have to wait to file their membership application with the approved association of their choice if they want to continue to practice after the legal end date of the renewal. There is a period of instruction both for files with associations, but also for renewal at Orias. Today, every day counts!“
How much does it cost to join a professional association?
For insurance and/or credit brokers, the rates range from 200 to more than 500 euros per year. Some associations add membership fees per employee and adjust their rates according to the firm’s other statutes (CIF, etc.). Finally, some associations consider the firm’s turnover for their pricing.
