The Administrative Court of Besancon decided on 4 November 1994 that commissions received by a bank on savings products placed among its customers were not required to be allocated in full to the period of subscription of these products. In effect, the commissions the amount of which could only be determined on the date of the reimbursement of the customer, related to a service completed only on this date.
In a similar case, the Administrative Court of Chalons sur Marne had decided on 5 July 1994 that such commissions related to a unique service completed on subscription, and that they must be wholly allocated to that period and that a possible reduction (advance repayment ...) in this commision could give rise to the setting up of a provision. The case law on that subject is thus not very clear. However, it apparently tends to assimilate completion of the service and certainty of the amount of receivables ( see : Paris Administrative Court of Appeal, 21 June 1994, aforementioned).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. For additional information contact Claire Acard on +33 (1) 55 61 10 10. The members of ARCHIBALD ANDERSEN Association d'Avocats (S.G. Archibald and Arthur Andersen International) are registered with the Hauts-de-Seine Bar.
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22 February 1995