Regulatory Alerts2017-01-31
FSMA Position on Application of Belgian Unfair Contract Terms Rules to Investment Instruments
The Belgian Financial Services and Markets Authority issued this position to clarify how unfair contract term provisions in the Economic Law Code apply to investment instruments offered to consumers. The document defines force majeure strictly, prohibiting unilateral alterations to essential product characteristics or early termination without full market value compensation. It further restricts issuers from charging additional costs for early repayment and mandates that any unilateral changes must meet specific conditions to avoid creating significant imbalances to the consumer's detriment.
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