Fintech Regulation in Belgium: Key Points
Belgium’s fintech regulatory landscape is characterized by strict regulations and guidelines governing various aspects of the industry. In this article, we will summarize key points related to crowdfunding regulation, invoice trading, payment services, open banking, insurance products, and credit references.
Crowdfunding Regulation
The Crowdfunding Regulation applies in Belgium and regulates crowdfunding services provided by crowdfunding service providers (CFSPs). To provide any crowdfunding services, CFSPs must be licensed by the Financial Services and Markets Authority (FSMA).
- Language requirements: Marketing communications can be carried out to prospective investors or project owners about crowdfunding services provided by CFSPs in one of the official Belgian languages or English.
Invoice Trading
Factoring is not a regulated activity in Belgium, but there are distinctions made between ‘non-recourse’ factoring and ‘with recourse’ factoring. Some factoring contracts permit clients to manage receivables on the factor’s behalf, which can be switched off if the client does not comply with their obligations.
Payment Services
Payment services are regulated in Belgium by the Act of 11 March 2018, which implemented the PSD2. A firm that provides payment initiation services or account information services in or from Belgium as a regular occupation or business activity must apply for registration as a payment institution.
- Open banking: Pursuant to the implementation of the PSD2 into Belgian law by the Act of 11 March 2018, financial institutions holding ‘payment accounts’ will be required to allow access to their customers’ account information to third-party payment service providers, subject to the consent of the customer.
Insurance Products
Insurance intermediaries must be licensed by the FSMA before starting their activities as broker, agent or sub-agent. Intermediaries who only act as ‘introducers’ are not subject to licensing requirements.
Credit References
There are two credit information registers in Belgium: the CICR and the Central Corporate Credit Register (CCCR). Regulated financial institutions have an obligation to consult the CICR in the process of assessing a borrower’s creditworthiness, and participation in the CCCR is mandatory for some financial institutions.