FSMA Launches Consultations on Information Obligations Applicable To Distribution of Financial Products to Non-Professional Clients in Belgium
At the European level, the legislative process on the regulation of package retail investment products ("PRIPs") reached a new peak in November 2013 when the European Parliament published its proposed amendments to the European Commission’s legislative proposal for the regulation on key information documents ("KIDs") for investment products. In parallel, on 3 February 2014, the Belgian Financial Services and Markets Authority (the "FSMA") launched a consultation on a draft royal decree on certain information obligations applicable to the distribution of financial products to non-professional clients ("Royal Decree"). On the same day, the FSMA announced the launch of a consultation on a draft regulation banning the distribution of certain non-mainstream financial products to non-professional clients (the "Regulation").
The purpose of the Royal Decree is to enhance the protection of non-professional clients during the distribution cycle of financial products by introducing identical rules which are valid for all types of financial products (securities, insurance products, savings accounts, etc.).
Firstly, the Royal Decree intends to introduce an obligation to provide an information sheet accompanying the distribution of financial products to non-professional clients. Secondly, the Royal Decree intends to regulate advertising of financial products.
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