Article L.541-3 of the Code monétaire et financier requires all Financial Investment Advisers (CIFs) to take out professional liability insurance. This legal obligation is intended to ensure that CIFs have adequate coverage for the financial consequences of their professional liability, thereby protecting clients against damages caused by errors or omissions in the course of their activity.

Article L.541-6 of the Code monétaire et financier prohibits Financial Investment Advisers (CIFs) from receiving client funds other than those intended to remunerate their activity. This prohibition considerably limits the need for a financial guarantee for 'pure' CIFs, as they do not directly handle client funds.

According to Article D.541-9 of the Code monétaire et financier, legal entities employing two or more staff members must have coverage of €300,000 per claim and €600,000 per insurance year. This requirement is intended to protect financial institutions against professional liability risks, including bodily injury, property damage, and consequential loss caused to third parties in the course of professional activity.

IOBSP or IAS brokers handling client funds must demonstrate a financial guarantee of at least €115,000. This requirement is intended to protect client funds and is specific to certain financial activities. It differs from requirements for other types of financial institutions, such as estate agents or condominium managers.

The financial guarantee and professional liability insurance (PII) are two distinct types of insurance required for financial institutions. The financial guarantee specifically protects funds entrusted by clients, while PII covers damages caused to third parties in the course of professional activity, such as advisory failures or analytical errors. This distinction is crucial for understanding the legal obligations and the risks covered by each type of insurance.

The DORA (Digital Operational Resilience Act) regulation, which imposes new obligations regarding digital operational resilience, entered into application on 17 January 2025. This regulation applies to a broad scope of financial entities, including financial investment advisers, and aims to strengthen protection against cyber threats and improve ICT risk management.

The DORA regulation requires the strengthening of contractual clauses with ICT providers to ensure their compliance with its requirements. This includes maintaining a provider register and inserting specific clauses to ensure digital operational resilience. This measure aims to improve ICT risk management and protect against cyber threats.

Professional liability insurance (PII) covers certain specific risks related to the professional activity of CIFs, while certain situations are excluded from coverage. For example, bodily injury, property damage, and consequential loss caused to third parties are covered, whereas intentional or fraudulent misconduct is excluded. This distinction is essential for understanding the limits of insurance coverage.