Part III Civil Law Legal Systems, 5 France

Subject(s):

Civil liability of lenders — Regulatory liability of lenders — Bank supervision — Capital markets — Supervision

The liability of the French financial and the French banking authorities is not so common a question. The legal framework is limited. The main source of liability standard is case law. The French financial authority and the French banking authority are not exactly in the same situation because of their respective status. Only the financial authority has legal personality. It implies that the banking authority is not in itself liable for negligence, misconduct, or inadequate behaviour. The French state is therefore liable in this latter case. This difference is without consequence on the conditions on which liability depends: a fault/negligence, damage, and a cause connection. In many cases, gross negligence/gross fault must be proved. Consequently, the question is to determine the significance and the extent of this concept. The result is that it is not easy to engage the liability of the authorities and the French state as regards losses suffered by clients.