Regulatory Alerts2019-02-21
Provision of investment services and performance of investment activity in Belgium by UK companies after Brexit
The Belgian Financial Services and Markets Authority (FSMA) outlines the regulatory framework for UK and Gibraltar investment firms operating in Belgium following Brexit, requiring them to transition from EU passporting to third-country authorization regimes. Firms must either establish a branch authorized by the National Bank of Belgium or the FSMA, or notify the FSMA to provide services without establishment while strictly adhering to conditions regarding eligible clients and reciprocity. The document further addresses the continuity of existing contracts, noting that while derivative contracts may continue, ongoing services require authorization, and warns that unauthorized activities are punishable by sanctions until specific transitional measures are enacted.