New regulation in Belgium

Transcription

1 New regulation in Belgium Twin Peaks II Daniel Nicolaes, BZB Chairman

2 Context Financial crisis Twin Peaks model NBB Macro and micro economic stability of the financial system FSMA Integrity of financial markets and fair treatment of financial costumers Supervision of financial intermediaries

3 Twin Peaks II regulation: what? Law of 30 July 2013 Decrees Rules of business conduct Intermediation Law of 31 July 2013 Injunction

4 Twin Peaks II regulation: why? Strengthen the supervisory powers of the FSMA Improve market transparency and protection of investors

5 Twin Peaks II regulation: Impact? Belgian and foreign banks and insurance companies Insurance intermediaries Intermediaries in bank and investment services

6 Twin Peaks II: Europe EU initiatives Market abuse Insurance intermediation EU legislation Omnibus I Directive Short-selling regulation

7 Twin Peaks II: FSMA Mystery shopping Remote access to internet banking websites Investigating powers Injunctions Public warnings Administrative fines Sanctioning powers

8 Twin Peaks II: FSMA Suspend trading in instruments Restrict trading financial instruments Ban the marketing of financial products/services Impose the use of labels

9 Twin Peaks II: client protection Presumption of causal link between a breach of conduct of business rule and the investors decision to enter into a transaction Extension of the existing MiFID conduct of business rules to insurance companies and intermediaries

10 Twin Peaks II: conduct of business rules Duty of loyalty Conflicts of interest and inducements Information must be correct, clear and not misleading Obligation to provide appropriate information

11 Twin Peaks II: conduct of business rules Know your client obligation Know your product obligation Filing obligation Reporting obligation

12 Duty of loyalty = general rule to act carefully Impact on financial intermediary? Low

13 Conflicts of interest Policy and procedures List of potential conflicts Training employees and information clients Impact on financial intermediary? Medium

14 Inducements Transparency of commissions insurance brokers How to inform the client Impact on financial intermediary? Major

15 Information must be correct, clear and not misleading Advertising s and terminology Impact on financial intermediary? Medium

16 Obligation to provide appropriate information Information on contract types, strategies, costs, risks, etc. Details in royal decree Impact on financial intermediary? Medium

17 Know your product obligation What? Possess necessary knowledge to advise clients on the services and products all PCP s Impact on financial intermediary? Major

18 Know your client obligation Obligation to assess the suitability: When? While giving advice to the client How? Ask information about knowledge, experience, financial situation and objectives Impact on financial intermediary? Major

19 Know your client obligation Obligation to assess the appropriateness: When? Not while giving advice to the client How? Ask the client for information about knowledge and experience Impact on financial intermediary? Major

20 Know your client obligation Advice? No advice

21 Filing obligation = keep a record of each client Impact on financial intermediary? Low

22 Reporting obligation = report adequately to each client Meaning word adequately Impact on financial intermediary? Low

23 To be expected Q&A Circular Work programs Twin Peaks II Twin Peaks II Twin Peaks II

24 To be expected Reporting Inducements Data retention Rules Rules Rules

25 To be expected What? Proof of knowledge about Twin Peaks II Who? All financial intermediaries Training Exam

26 Meanwhile Lack of information

27 Other regulation Lending to SME s New statute financial planner New statute credit intermediary Etc.

28 Thank you for your attention Questions?