BELGIUM: Consultation on marketing ban of certain financial products

Tuesday February 4 2014

The Financial Services and Markets Authority of Belgium (FSMA) has launched a consultation on the marketing ban of certain financial products on the Belgian retail market and the draft regulations it has established for this purpose.

The products covered by the FSMA draft regulations are financial products that carry on so-called non-mainstream assets. It is common that, during periods of low interest rates, these products are promoted under the label of products with the security and good performance without any correlation with traditional financial markets. However, in reality, these products are risky, illiquid and complex for consumers.

The draft regulation provides a marketing ban in Belgium, to retail customers, financial products that depend on a life settlement or part of an investment fund, if the investment fund cannot be offered the public in Belgium, as is the case of certain funds or leveraged funds investing in wine.

Comments are invited from interested parties before 17th February 2014. Following the consultation and notification procedure prescribed by law, the final measures must be approved by Royal Decree and published in the Belgian Official Gazette.

Click on the above link for the consultation document.