FSMA fines large Belgian retail bank for non-compliance with marketing rules in Belgium
15th July 2021
The Belgian Financial Services and Markets Authority (FSMA) recently published a settlement agreement agreed with a large Belgian retail bank.
The FSMA found that the Bank acting as Custodian and distributor launched marketing activities before getting the marketing authorisation for the new sub-fund and without prior submission of the marketing material. The cost of non-compliance with the marketing rules in Belgium cost the bank EUR 300 000 and the publication of the settlement agreement on the regulator website.
While there is some level of harmonisation in the local fund marketing rules across the EU, there are significant differences too. It is vital for fund managers, distributors and other market participants to navigate the different rules in different countries and ensure compliance with the rules.
With the upcoming cross-border distribution directive and regulation coming into force on 2 August 2021, it is vital that fund managers and other market participants understand the change in local marketing rules and how it may impact their marketing setup and marketing materials.
Zeidler’s legal and regulatory experts are actively monitoring the cross-border distribution directive and regulation. For additional guidance on this matter, please contact us.