Section 3: Rules of good conduct and organisation

Participative finance intermediaries must behave honestly, fairly, transparently and professionally, taking into account the rights and interests of their clients, including potential clients.

To this end, they shall take and document all reasonable measures to detect and prevent the risks of conflicts of interest that may arise in the course of their activity.

Participative finance intermediaries shall comply with rules of good conduct and organisation that take account of the nature of the transactions they carry out.

Without prejudice to anti-money laundering and anti-terrorist financing requirements, when they present offers of financing, by loans or donations, in the form of a collection open to the public, intermediaries in participatory financing must ensure that the project presented is predefined in terms of purpose, target amount of financing, timetable, quantified description of the intended use of the funds raised and expected result.

Participative finance intermediaries must:

1° Provide the public, in a legible and comprehensible manner, with any information enabling them to be identified and contacted;

2° Inform the public of the conditions for selecting projects and project sponsors;

3° Publish an annual activity report;

4° Provide lenders or donors with information concerning the characteristics of the project and, where applicable, the loan concerned, in particular with regard to the interest rate applicable, the total amount of credit, the duration of the loan, the terms and conditions of repayment and whether or not the lender has the right to withdraw;

5° Warn:

a) Lenders of the risks associated with participatory project financing, in particular by publishing the default rates recorded for current projects and projects financed for more than twelve months;

b) Project owners, on the risks of excessive debt;

6° Provide lenders with the tools they need to assess the amount of the loan they can envisage, taking into account their income and expenses, as well as the relevant information they need to assess the economic viability of the project, in particular the business plan;

7° Provide project owners and lenders or donors with information concerning the remuneration of the intermediary in participative financing as well as all the fees required;

8° Provide project sponsors and lenders or, where applicable, donors, with a standard contract formalising the terms and conditions of the funding, the presentation and compulsory details of which are set by decree in the Conseil d'Etat;

9° Provide project sponsors with a summary document showing the total amount of the operation and, where applicable, the agreed rate, the term of the loan, the repayment terms and the total cost;

10° Ensure that the interest rate on loans offered to individuals wishing to finance initial or continuing training as referred to in 3° of article L. 548-1 or, where applicable, to the legal entities concerned, is lower than the rate referred to inarticle L. 314-6 of the French Consumer Code;

11° Define and organise the procedures for monitoring financing transactions and managing transactions until their completion, including in the event that the intermediary in participative financing ceases its activity;

12° In the case of an equity financing project referred to in 4° of Article L. 1611-7-1 of the General Local Authorities Code, take all measures aimed at detecting and, where applicable, preventing the conclusion of a contract that would constitute one of the offences referred to in Articles 432-12 and 432-13 of the Criminal Code.

Advertising relating to their activity, whenever it indicates an interest rate or figures relating to the financing transaction, must mention them clearly, precisely and visibly.

A decree of the Conseil d'Etat shall specify the conditions for the application of these obligations as well as the procedures for registering on the website of the intermediary in participative financing with a view to the transactions mentioned in I of Article L. 548-1 and the conditions for using this service.