Fintech Regulation in Belgium: A Focus on Online Lending Platforms

Introduction

Belgium’s fintech landscape is subject to a complex regulatory framework. In this article, we will explore the key aspects of fintech regulation in Belgium, with a specific focus on online lending platforms.

Mortgage Credit Regulation

Mortgage credit is highly regulated under Book VII of the Code of Economic Law. This regulation sets out compulsory rules for:

• Pre-contractual information: Clear and transparent information must be provided to borrowers before they enter into a mortgage agreement.
• Content of the agreement: The terms and conditions of the mortgage contract are strictly outlined, including security interests and maximum interest rates.

Consumer Credit Regulation

Consumer credit offered by credit institutions or indirect peer-to-peer consumer lending platforms is subject to a highly regulated regime in Book VII of the Code of Economic Law. This includes rules on:

• Interest rates: Maximum interest rates that can be charged to consumers.
• Security interests: The type and amount of security required from borrowers.

Peer-to-Peer Lending between Consumers

Peer-to-peer lending between consumers is not regulated, but it’s worth noting that this type of lending may not result in a public offering. Alternative (indirect) peer-to-peer models are also present.

SME Credit Regulation

The regime applicable to credit to Small and Medium-sized Enterprises (SMEs) is less regulated than the one for consumer credit.

Crowdfunding Platforms

Crowdfunding platforms are regulated under the Law of 18 December 2016 on crowdfunding and the EU Regulation 2020/1503 of 7 October 2020 on European crowdfunding service providers for business (the “Crowdfunding Regulation”).

Conclusion

Fintech regulation in Belgium is complex, with varying levels of regulation depending on the type of lending platform. For further information, please consult the relevant laws and regulations mentioned in this article.