French Polynesia – CM C

Country Manual Credits

French Polynesia – Update 2025

BRP has updated its Country Manual Credits for

French Polynesia out of Credit Institution’s Country of Establishment (RT, BT & Def)

Regulatory Template

Material changes

Following the publication of the decision rendered by the French Cour de Cassation on the 15th of November 2023 (see Alert BRP France 5/2023) some answers regarding activities undertaken with qualified prospects have been changed.

Indeed, the decision confirms that the exceptions, listed under Article L.341-2 of the MFC, to the direct marketing rules can also be used by third countries (and non-passported EEA financial institutions).

This approach is also relevant when acting in and into French Polynesia. As a consequence, the rules concerning direct marketing do not apply, notably, to contacts with qualified prospects in and into French Polynesia. The monopoly rules remain, however, relevant when activities take place on the French Polynesian territory. 

You will find below a summary of some of the main changes resulting from this development in case law:

In French Polynesia: 

Prospecting activities relating to credit services undertaken occasionally with qualified prospects in French Polynesia, actively or passively, are now a grey zone. A cautious approach is recommended as they could be qualified as negotiation of credit services, due to the broad interpretation of the concept of negotiation by the authorities. 

Into French Polynesia: 

Due to the monopoly rules, active negotiation activities via remote means of communication into French Polynesia are a grey zone for qualified prospects but seem permitted if undertaken on their initiative. The activities should in any case remain occasional, due to the “bundle of indicators” method used by the authorities to determine if a licensable activity has been undertaken on the French Polynesian territory. The Credit institution should, in particular, avoid systematically sending credit agreements to be signed in French Polynesia. For the same reasons, the “On an occasional basis” condition has also been added where relevant for activities undertaken with non-qualified prospects via remote means of communication. 

Non-material changes

In the Behaviour Template and the Regulatory Template the condition “Local provisions on the annual percentage rate of charge must be respected” has been added where relevant, to reflect what was already indicated in the RT, i.e. that the local provisions on the annual percentage rate of charge are applicable in any scenario in business relationships with French Polynesian consumers. 

Finally, the condition “No disbursement of the credit on the client’s bank account in the target country” has been deleted from the Behaviour Template, as this is a general recommendation that should in any case always be complied with and is not linked only to a few activities. 

For more information, please contact us: info@brpsa.com

Geneva, April 1^st 2025