These allow a regulated financial adviser/broker of one country to export their services to another EU country, but only once relevant authority has been sought from the other country.

However, many foreign financial advisers are using the 'EU financial passport' to advise on French matters, and this is not allowed as the foreign adviser is not regulated — and therefore not insured — to offer advice concerning another country's financial, legal or tax affairs.

ORIAS, the oganisation regulating insurance and assurance brokers in France, clearly states on the font page of its website (www.orias.fr) above the pdf icon containing details of foreign advisers that those foreign advisers are regulated in their home country by their home country Regulator, and are only authorised in France to conduct their home country regulated activity.  The 'Code Monétaire et Financier' which regulates most other financial activities also states, article L541-2, that financial advisers need to '... habitually reside or be established in France …".

So, before accepting financial advice, check to see that your adviser is appropriately regulated and authorised to give you the relevant financial advice.

However, this issue seems to have brought to light another matter, in that whilst any adviser can use products that are not regulated in his home country, certain requirements and notifications to the client are essential and mandatory. These are not being provided, causing foreign nationals now resident in France to unknowingly effect contracts that are not regulated in France, and usually pursuant to unregulated advice.

The financial Ombudsman of any country is only authorised to review cases concerning regulated products and permitted activities (see UK Ombudsman Rules - Annex A, Rules, Chapt 2.6.1 — 1).  The provision of advice concerning another country can therefore only be considered to be unregulated advice, as can only be an unregulated activity that of the provision of an unregulated product.

Investors are therefore potentially at risk, not only from the unregulated product but from the unregulated advice surrounding the product.

Furthermore, the advisers are therefore most probably not appropriately professionally insured and will not have the required financial guarantees.

Also remember concerning French advisers that those regulated under ORIAS are only authorised according to the Code des Assurance, article L511-1, to "... introduce, propose or aide to conclude ..." a life assurance contract. For all other advice, including investment advice, the transmission of client orders and so on, regulation is required under the 'Code Monétaire et Financier'.

The Annett Consultancy is fully regulated, not only by the Code des Assurance (ORIAS) but by the Code Monétaire et Financier (ANACOFI-CIF), and holds passporting rights to the UK, as it does all required professional insurances and financial guarantees.