Communication NBB_2018_19 / Application for Approval of Examinations for the Compliance Officer Function

NBB_2018_19 – 18 May 2018 Communication – P. 1/4 Communication National Bank of Belgium s.a.
Berlaimont Boulevard 14 – BE-1000 Brussels tel. +32 2 221 38 12 – fax + 32 2 221 31 04 enterprise number: 0203.201.340 RPM Brussels www.nbb.be Brussels, 18 May 2018 Reference: NBB_2018_19 FSMA Congress Street 12-14 – BE-1000 Brussels tel. +32 2 220 52 11 – fax + 32 2 220 52 75 www.fsma.be your contacts:
Kurt Van Raemdonck tel. +32 2 221 53 39 compliance@nbb.be Benedicte Leroi tel. +32 2 220 53 06 compliance.inspection@fsma.be Application for Approval of Examinations for the Compliance Officer Function Scope Organizations intending to organize an examination referred to in Article 2, § 1, 3°, a), of the Regulation of the National Bank of Belgium of 6 February 2018 regarding the expertise of compliance officers, approved by Royal Decree of 15 April 2018 (hereinafter the "BNB Regulation") and to Article 3, § 1, 3°, first paragraph, a), of the FSMA Regulation of 27 October 2011 regarding the approval of compliance officers, approved by Royal Decree of 12 March 2012, as amended by the Regulation of 28 February 2018, approved by Royal Decree of 15 April 2018 (hereinafter the "FSMA Regulation"). Summary/Objective Organizations intending to organize an examination referred to in Article 2, § 1, 3°, a), of the BNB Regulation and to Article 3, § 1, 3°, first paragraph, a), of the FSMA Regulation are required to obtain prior approval of this examination from the NBB and the FSMA. This communication sets out the procedures for submitting the approval application to the supervisory authorities.

Communication – P. 2/4 NBB_2018_19 – 18 May 2018 Madam, Sir, Organizations intending to organize an examination referred to in Article 2, § 1, 3°, a), of the BNB Regulation and to Article 3, § 1, 3°, first paragraph, a), of the FSMA Regulation are required to obtain approval of this examination from both the NBB and the FSMA. To this end, they are required to submit a file containing all information necessary to evaluate the approval application, demonstrating that the examination meets all the approval conditions listed in Article 5 of the BNB Regulation and Article 10 of the FSMA Regulation. Upon receipt of a complete approval file, the supervisory authorities have a period of three months to rule on the approval application. In addition to this communication, organizations can find more detailed information on the content of the BNB Regulation and the FSMA Regulation in the explanatory notes that were published jointly with their respective regulations 1. For the purpose of approval, organizations are required to communicate the following data to the supervisory authorities:

1. APPLICANT
   The following data must be communicated:

• the name and address of the organization;
• the name, position, and contact details of the person responsible for submitting the application.

2. SCOPE
   For each application, the organization specifies whether it concerns:
   o an examination in the banking and investment services sector; or o an examination in the insurance sector.
3. EXAMINATION QUESTIONS
   The organization attaches the examination questions for each part:

• the examination questions for the theoretical part, which cover all legal and regulatory rules of conduct and integrity applicable to the regulated companies concerned and relating to the compliance function. Specifically:
  o for the insurance sector: see Annex 1; o for the banking and investment services sector: see Annex 2;
• the examination questions for the practical part, which are divided into two modules for each sector:
  o for the insurance sector:
• Module A, which concerns compliance with the duty of care towards clients and the prevention of the use of the financial system for money laundering and terrorist financing;
• Module B, which covers all other legal and regulatory rules of conduct and integrity applicable to insurance companies and relating to the compliance function;
  1
  See the Belgian Monitor of 24 April 2018.

NBB_2018_19 – 18 May 2018 Communication – P. 3/4 o for the banking and investment services sector:

• Module A, which concerns the rules of conduct referred to or taken in execution of Articles 27 to 28bis of the Law of 2 August 2002 and the organizational rules related to the provision of investment services referred to or taken in execution of Articles 41 to 42/2, 64, 65/2, 65/3, 510 to 510/2, 527 and 529/1 of the Law of 25 April 2014, Articles 25/1, § 1, second paragraph, 4°, 26, §§ 1, 2, 5 and 6, 26/1 and 26/2 of the Law of 25 October 2016, Articles 219, § 4, 220 and 221, first paragraph, of the Law of 3 August 2012 and Article 33, first paragraph, of the Law of 19 April 2014;
• Module B, which covers all other legal and regulatory rules of conduct and integrity applicable to the regulated companies referred to in the BNB Regulation and the FSMA Regulation and relating to the compliance function.
  The examination questions must be accompanied by detailed model answers, as well as the weighting of points.

4. PREVIOUS TRAINING
   The organization provides a description of the training to be organized as preparation for the examination. The training material (syllabus, etc.) must also be attached for informational purposes for the FSMA and the NBB.
5. JURY
   The examination is subject to the assessment of a jury composed of at least three persons, who possess sufficient expertise and independence to exercise their functions. The overall composition of the jury reflects a sufficiently broad range of experiences. The organization attaches a detailed description of the composition and functioning of the jury, including the CVs of the jury members. A jury member whose independence cannot be guaranteed, for example because he or she is a family member or colleague of the candidate, cannot sit. He or she must be replaced if necessary to guarantee the minimum number of jury members.
6. CERTIFICATE OF EXAM PASS
   The organization attaches a model certificate, as referred to in Article 5, 6°, of the BNB Regulation and Article 10, 6°, of the FSMA Regulation.
7. PRACTICAL ORGANIZATION OF EXAMINATIONS
   The organization attaches a description containing at least the following elements:

• the organization method for the theoretical and practical parts of the examination (multiple choice, case study, open book, preparation time, etc.);
• the method for designing examination questions;
• the method for storing examination questions and ensuring confidentiality;
• the method for selecting examination questions (with a view to regular rotation);
• the location where the examination will be organized;
• the frequency of examinations, including the second session;
• the examination regulations applicable to the candidate (for example, the identification method, monitoring during the examination, prohibition of the use of electronic tools, etc.).

8. APPEALS PROCEDURE
   The organization attaches a description of the appeal options available to the candidate. In particular, the candidate must have a right to consultation and the possibility to submit a complaint to an independent body separate from the jury that previously evaluated the examination of the candidate who filed the appeal.

Communication – P. 4/4 NBB_2018_19 – 18 May 2018
9. PERMANENT NATURE OF APPROVAL CONDITIONS
Organizations are required to immediately inform the FSMA and the NBB of any changes to the conditions related to the initial approval. Thus, the examination questions must be regularly updated according to legal and regulatory developments and to prevent them from being known in advance by candidates after a certain period. Updates to the examination questions are subject to prior approval by the FSMA and the NBB in the same manner as the initial approval file. The same application must be submitted by email to the NBB and the FSMA:
NBB: compliance@nbb.be;
FSMA: compliance.inspection@fsma.be.
Please accept, Madam, Sir, our distinguished salutations.
Jan Smets Jean-Paul Servais
Governor of the National Bank of Belgium President of the Financial Services and Markets Authority