Section 3: Prudential provisions

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L522-14L522-15L522-15-1L522-16L522-17L522-18

Article L522-17

French Monetary and Financial CodeIn force
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Updated 7 Nov 2023

I. - Funds received either from payment service users or through another payment service provider for the execution of payment transactions shall be protected in accordance with one of the following two methods, this choice being left to the discretion of the payment institution:

1° The funds received shall under no circumstances be confused with the funds of natural or legal persons other than the payment service users on whose behalf the funds are held.

Funds remaining in the Payment Service User's account at the end of the business day following the day on which they were received, as defined in d of Article L. 133-4, shall be deposited in a separate account with a credit institution authorised to receive sight deposits from the public.

They may also be invested in financial instruments held in accounts opened specifically for this purpose with a person mentioned in 2° to 5° of article L. 542-1, under conditions set by order of the Minister for the Economy.

These funds are protected under the conditions laid down in Article L. 613-30-1 against any recourse by other creditors of the payment institution, including in the event of enforcement proceedings or insolvency proceedings instituted against the institution;

2° The funds received are covered by an insurance contract or other comparable guarantee from an insurance company, finance company or credit institution not belonging to the same group, under the conditions defined by order of the Minister for the Economy, which insures or guarantees payment service users against default by the payment institution in the performance of its financial obligations.

II. - Where the funds remitted can be used both to execute future payment transactions and for services other than payment services, the portion of the funds received for the execution of future payment transactions is protected in accordance with the terms and conditions set out in this article. If this portion is variable or cannot be determined in advance, payment institutions shall value the representative portion of the funds received for the execution of payment transactions in accordance with the conditions laid down by an order of the Minister for the Economy. The representative share thus determined is protected under the conditions set out in I.

Mariela Petrova

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Common Questions

Working with a corporate lawyer in France — Q&A

Any time a strategic decision changes how the company is owned, governed or contractually bound — incorporation, fundraising, M&A, restructuring, shareholder agreements, or major commercial contracts. Earlier engagement always costs less than later remediation.

A notary (notaire) is a public officer who authenticates specific deeds (mainly real-estate transfers and certain family-law acts). A corporate lawyer (avocat) advises on strategy, negotiates and drafts company documents, and represents you in disputes. The two roles complement rather than overlap.

Yes — most of our clients are foreign suppliers, investors or holding entities. We bridge the gap between French law and your home jurisdiction's expectations and deliver everything bilingually.

The SAS (Société par Actions Simplifiée) is the default choice for most international structures: flexible governance, single shareholder allowed, no minimum capital, and works cleanly with foreign holding entities. We assess SARL, SA, SCI on the merits when the situation calls for it.

Yes — communications with a French avocat are protected by the secret professionnel (Article 66-5 of the Law of 31 December 1971). This protection is broader than the common-law attorney-client privilege and applies to written and oral exchanges.

We work on fixed fees for clearly scoped engagements (incorporation, contract drafting, audits) and on monthly retainers for ongoing advisory. Hourly billing is the exception, not the default. You always know the cost before work starts.

Typical timeline is 2–3 weeks from KYC kick-off to RCS registration, assuming standard documentation. Holding-company structures, foreign-shareholder identification or in-kind contributions can extend this — we flag the gating items at the first meeting.

Absolutely. We routinely coordinate with your in-house counsel, expert-comptable or notaire — pragmatic collaboration is the norm, not the exception. We send them everything they need to do their part without duplicating work.

Mariela Petrova

Mariela Petrova

Avocate au Barreau de Paris

Toque #C2396

15+ Years In Corporate Practice

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Communications protected by professional secrecy — secret professionnel de l'avocat, Article 66-5 of the Law of 31 December 1971.

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