Good repute (fit and proper)
A condition required of intermediaries and their managers: not having been subject to certain criminal convictions incompatible with the activity. Good repute is checked at ORIAS registration via the criminal-record extract; it protects clients by screening out risky profiles.
Key points
- Entry condition to the IOBSP profession: absence of certain incompatible criminal convictions.
- Checked via the criminal-record extract of the intermediary and their managers.
- Protects clients by screening from the profession those convicted of financial offenses.
- Must be maintained throughout practice: a subsequent conviction can lead to deregistration.
Frequently asked questions
What types of convictions are incompatible with IOBSP good repute?
The most clearly targeted offenses are those related to financial probity: fraud, breach of trust, money laundering, banking and financial offenses. The exact list is defined by the regulatory texts governing ORIAS and may include certain management bans imposed in insolvency proceedings. ORIAS verifies these elements at registration and may recheck them during practice.
Why is the good repute of managers also checked, not just that of the legal entity?
A legal entity can only act through natural persons: managers make decisions, access client funds, and embody the trust relationship with the borrower. If only the legal structure were checked, it would be easy to circumvent the good-repute requirement by forming a company. Individual checks on managers aim to prevent this type of circumvention.
What mistake should be avoided regarding good repute when the firm evolves?
When a new manager joins the firm or a partner takes on supervisory responsibilities, the good repute of this new profile must be declared and verified with ORIAS within the regulatory timeframe. Omitting this update exposes the firm to non-compliance that could lead to a suspension or withdrawal of registration, even if the incumbent professional meets all conditions.
In practice
A broker recruits an experienced associate wishing to register as a MIOBSP within their firm. Before submitting the file to ORIAS, the broker rigorously checks the candidate's criminal-record extract to ensure no incompatible conviction appears, thereby protecting their own registration.
Official sources
- Article L519-3-3 CMF (good repute and competence) · Légifrance
- Article L519-1 of the Monetary and Financial Code · Légifrance
- Prudential supervision and resolution authority · ACPR (Banque de France)