Publication by the FSMA of its annual report

The Financial Services and Markets Authority (“FSMA”) published its 2017 annual report on 8 June 2018. At the occasion of its presentation, the FSMA described the preventive and enforcement actions it had taken as well as the topics it had addressed in 2017.

The FSMA’s key mission is “to contribute to the honest and fair treatment of financial consumers and to the transparency of the financial markets”. The FSMA can take a wide range of actions and seek to act preventively whenever possible.

The ex-ante approval of advertisements for financial products is one example of such preventive actions. The FSMA wishes to prevent the use of misleading advertisements or those that do not satisfy the legal requirements. As a result, there are very few complaints with respect to advertisements. For example, in 2017, more than 3,200 advertisements received the FSMA’s prior approval.

The ban on distributing particularly complex structured products also serves a preventive purpose. In 2017, almost half (20 out 50) of such products which included new features were rejected in Belgium as they were considered too complex. Another form of preventive action has been the introduction of new regulations such as the ban on the Belgian market of the distribution of binary options. The number of complaints related to such products has also significantly fallen. The warnings that the FSMA publishes against potentially illegal offers of financial products and services also fit within this preventive approach. Last year, the FSMA published 116 warnings (as compared to 54 in 2016) and such increase is due in part to the rise in notifications from consumers who can more easily liaise with the FSMA in this regard.

In cases where a preventive action is not possible, the FSMA can take enforcement measures. One of the options available to the FSMA is to take administrative sanctions. In 2017, the FSMA imposed 13 such sanctions for a total amount of EUR 2.15 million. Another form of enforcement action is the withdrawal of the registration of financial intermediaries. In 2017, the FSMA withdrew 285 intermediaries from its register.

In the course of the presentation of the FSMA’s annual report, the attendees’ attention was also drawn to the sectorial inquiries conducted by the FSMA in the areas of insurance and pensions, and to the new whistleblowers’ point of contact. Since the launch of such point of contact at the end of September 2017, the FSMA has received 51 reports from whistleblowers.

Read: The annual report in French  or Dutch

FSMA issues a communication on the new draft prospectus law

The new draft law implementing the prospectus regulation was published on 12 June 2018, on the Belgian Parliament’s website (DOC Chambre 54 – 3150) (the “Draft Prospectus Law”). A previous version had been subject to a public consultation launched on 24 November 2017 by the FSMA  on key choices to be made under the new EU Prospectus Regulation which repeals and fully replaces the EU Prospectus Directive (Directive 2003/71/EC as amended) ("EU Prospectus Directive"). The Draft Prospectus Law was modified as a result of such consultation. On 22 June 2018, the FSMA issued a communication (FSMA_2018_09) setting out the main principles introduced by such Draft Prospectus Law.

Read: The draft prospectus law (French and Dutch)

Read: The FSMAs communication (French  and Dutch)

FSMA issues a new warning regarding investments in cryptocurrencies

The FSMA receives an increasing number of consumer complaints regarding investments in cryptocurrencies. In its new warning issued on 21 June 2018, the FSMA once again warned the public about platforms offering investments in cryptocurrencies as these platforms are often operated by fraudsters who are now resorting to cryptocurrencies to swindle consumers.

Read:  The FSMAs warning 

Read: The FSMAs updated list of cryptocurrency trading platforms for which it has received questions/complaints from consumers where the FSMA has identified indicia of fraud