CBFA/ Opening of a branch abroad

12-14 Congress Street | 1000 Brussels t +32 2 220 53 42 | f +32 2 220 54 93 | www.cbfa.be Prudential Policy

Communication of 11.01.2007 to liquidation bodies and similar entities regarding the opening of a branch abroad

Madam, Sir,

The Royal Decree of 26 September 20051 regarding the status of liquidation bodies and bodies assimilated to liquidation bodies provides, in its Article 17, the possibility for these bodies2 to exercise their activities by establishing a branch abroad. This option is, however, subject to the condition of prior notification of the project to the CBFA.

In order to enable liquidation bodies and similar entities to meet this legal obligation, while ensuring a standard procedure and information scheme, the CBFA has developed a standard form and invites these entities to use it for any notification or for any potential updates to information previously transmitted in this regard.

The form to be used, titled "Notification of establishment of a branch abroad", is included in Annex 1.

The notification process, provided for by this communication, applies to bodies of Belgian law as defined in Article 23 §§ 13 and 7 of the Law of 2 August 2002 upon any establishment of a branch on the territory of another State.

Although each case must be examined separately, the CBFA considers in principle that having, in a durable manner, in another State, an operational headquarters that constitutes a part without legal personality, which functions as an extension of the body and which has the ability to carry out, in whole or in part, operations inherent to the activities of the body, must be considered as a branch.

The CBFA may also oppose the realization of the project to establish a branch abroad by a decision motivated by the prejudicial repercussions of the opening of the branch on the organization, financial situation, or supervision of the body.

…/…

1 Taken in application of Article 23 of the Law of 2 August 2002 regarding the supervision of the financial sector and financial services. 2 This term will be used in this document indifferently whether it concerns a liquidation body or a body assimilated to a liquidation body. 3 Except for credit institutions established in Belgium.

12-14 Congress Street | 1000 Brussels t +32 2 220 53 42 | f +32 2 220 54 93 | www.cbfa.be

Bodies will ensure that they inform the CBFA, by means of the attached form, of any branches that may have been established abroad prior to the publication of this communication, no later than 30 June 2007.

We ask you to accept, Madam, Sir, the expression of our very distinguished consideration.

The President,
E. Wymeersch.

Annex: Notification of establishment of a branch abroad