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Marketing Tied agents

Information about tied agent status

Published on May 24, 2013

Tied agent status was created by Directive 2004/39/EC on Markets in Financial Instruments (MiFID) and allows a person appointed by an investment services provider (ISP) to provide certain investment services. The tied agent must be listed in a public register of the State in which it is established, and is subject to obligations and prohibitions in its dealings with its clients.

What is a tied agent?

According to Article L. 545-1 of the Monetary and Financial Code, a tied agent is a natural person or legal entity appointed by an investment services provider (ISP), who may provide the following investment services on behalf of the latter:

  • reception and transmission of orders for third parties,
  • guaranteed or non-guaranteed placement,
  • investment advice.

The tied agent may also promote services provided by the ISP which appointed it, provide advice on the said services and conduct direct marketing to clients on behalf of the ISP in question.

Relations between the tied agent and the ISP

In application of Article L. 545-2 of the Monetary and Financial Code, the tied agent acts under a mandate given by a single ISP authorised to provide the services for which it is appointing the tied agent. The tied agent exercises its activity under the full and unconditional responsibility of the said ISP.

By the terms of Article L. 545-4, the ISP on behalf of which the tied agent is acting must:

  • check their fitness, properness and professional knowledge,
  • supervise the activities of the tied agent in order to comply at all times with the legislative and regulatory provisions to which it is subject itself, and ensure that the tied agent also complies with the legislative and regulatory provisions applicable to it.

When the tied agent also exercises activities other than those governed by the tied agent regime, the ISP must take appropriate measures to avoid any such activities having a negative effect on the activities the agent carries out on behalf of the said provider.

Tied agent registration

The financial intermediaries register
Each tied agent must be listed in a register held by the ORIAS. This register also lists FIA, banking transaction intermediaries and insurance intermediaries.

The tied agent must be listed in a public register in the State in which it is established. However, when a French ISP appoints a tied agent established in a State that does not authorise ISPs established in that State to make use of the services of tied agents, the tied agent appointed by the French ISP must be listed in the French public register. Thanks to this register, any real or potential client can check the authorisation of any tied agent they are in contact with.

Contacts with clients and prohibitions applicable to tied agents

When tied agents enter into contact with actual or potential clients, they must inform them of their status and of the identity of their principal (Article L. 545-2 of the Monetary and Financial Code).
Tied agents may not receive any funds or financial instruments from the clients of their principal (Article L. 545-3 of the Monetary and Financial Code).

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Head of publications: The Executive Director of AMF Communication Directorate.
Contact: Communication Directorate – Autorité des marches financiers 17 place de la Bourse – 75082 Paris cedex 02