FRANCE: Organisme de Financement Specialisé Ordinance Enters into Force

Friday January 26 2018

It has been reported that the Ordinance n° 2017-1432 dated 4 October 2017 entered into force on 4 January 2018. This ordinance introduced a new legal framework for loan origination by French funds, by introducing a new French vehicle entitled the “organisme de financement spécialisé”, which is authorized to originate loans directly in France, as the fonds professionnel spécialisé and the fonds professionnel de capital investissement.

The ordinance also introduces several new exemptions to the French banking monopoly (including by authorizing foreign funds to acquire unmatured receivables in France from a duly authorized fronting entity or by making the daily mechanism available to professional funds).