Law of 22 April 2016 transposing Directive 2014/49/EU on deposit guarantee schemes and containing various provisions

FEDERAL PUBLIC SERVICE FINANCES
[C − 2016/03166]
22 APRIL 2016. — Law transposing Directive 2014/49/EU on deposit guarantee schemes and containing various provisions (1)

PHILIPPE, King of the Belgians,

To all, present and future, Greetings.

The Chamber of Representatives has adopted and We sanction what follows:

CHAPTER 1. — Introductory provisions

Article 1. This law regulates a matter referred to in Article 74 of the Constitution.

Art. 2. This law provides for the partial transposition of Directive 2014/49/EU on deposit guarantee schemes.

CHAPTER 2. — Amendments to the Law of 25 April 2014 on the status and supervision of credit institutions

Art. 3. In Article 3 of the Law of 25 April 2014 on the status and supervision of credit institutions, last amended by the Royal Decree of 26 December 2015, the following amendments are made:

a) the provision under 22° is replaced as follows:

“22° Guarantee Fund, the Guarantee Fund for financial services established by Article 3 of the Royal Decree of 14 November 2008 implementing the crisis measures provided for in the Law of 22 February 1998 establishing the organic status of the National Bank of Belgium, with regard to the establishment of the Guarantee Fund for financial services;”

b) in the provision under 68°, the words “and by a credit institution issued debt instruments” are replaced by the words “, including bearer cash bonds and dematerialized and registered to nominal account cash bonds,”;

c) in the provision under 69°, the words “, including bearer cash bonds and dematerialized and registered to nominal account cash bonds,” are inserted between the word “deposits” and the word “that”.

Art. 4. In Article 380 of the same law, the following amendments are made:

1° in the first paragraph, the words “, with regard to deposits held in Belgium or in a Member State,” are inserted between the word “must” and the word “participate”;

2° in the first paragraph, the words “, when an institution fails to pay compensation to certain categories of depositors who do not carry out banking or financial activities” are replaced by the words “pay compensation to certain categories of depositors, when bankruptcy is declared or when the supervisor has taken the decision mentioned in Article 381, second paragraph”;

3° the first paragraph is supplemented with the following sentences:

“The deposit guarantee scheme also aims to finance the resolution of credit institutions in accordance with Article 384/1. The resolution authority determines, after consulting the Guarantee Fund, the amount for which the deposit guarantee scheme is liable. The financial resources of this deposit guarantee scheme may also be used to finance measures to secure depositors' access to guaranteed deposits in the context of the bankruptcy of the relevant credit institution. The King lays down the procedures and conditions for taking such measures.”;

4° the fourth paragraph is replaced as follows:

“Depositors at branches established in Belgium by credit institutions subject to the law of another Member State are informed and reimbursed by the Guarantee Fund on behalf of and in accordance with the instructions of the deposit guarantee scheme of that other Member State.”

5° the fifth paragraph is replaced as follows:

“The Guarantee Fund carries out tests on its deposit protection scheme at least every three years and, if necessary, more frequently. The first test takes place no later than 3 July 2017.”

Art. 5. In Article 381 of the same law, the following amendments are made:

1° in the first paragraph, the words “as soon as possible” are inserted between the word “Guarantee Fund” and the word “in case”;

2° in the first sentence of the second paragraph, the words “with which the failure of a credit institution is established under Belgian law” are replaced by the words “which establishes that a credit institution under Belgian law, for reasons directly related to its financial position, currently appears unable to repay the deposits and does not appear likely to be able to do so in the foreseeable future”;

3° in the second sentence of the second paragraph, the words “as soon as possible and in any case” are inserted between the word “takes place” and the word “no later than”;

4° the third paragraph is replaced as follows:

“The Guarantee Fund ensures that the repayable amount is available within a period of seven working days from the date of the decision referred to in the second paragraph, or the date of the bankruptcy declaration of the credit institution. The King may allow a longer repayment period, which may not exceed three months if the depositor is not the rightful owner of the amounts in the account. The King may also defer repayment when it is uncertain whether a person is entitled to receive a repayment, when the deposit is the subject of a legal dispute or restrictive measures by national governments or international bodies, when no transaction has taken place regarding the deposit in the past 24 months, when the repayable amount is considered to be part of a temporary high balance, or when the repayable amount is to be paid by the deposit guarantee scheme of the Member State of origin.”;

5° the first sentence of the fourth paragraph is replaced as follows:

“The credit institution or, if it is bankrupt, the trustee communicates at all times and at the request of the Guarantee Fund all data that the Guarantee Fund needs to repay the deposits, including the markings pursuant to Article 381/1 and the total amount of eligible deposits of each depositor.”.

Art. 6. In the same law, an Article 381/1 is inserted, reading:

“Art. 381/1. Credit institutions mark the eligible deposits in such a way that those deposits can be identified immediately. The detailed rules for the marking are laid down by the King.”.

Art. 7. Article 382 of the same law is replaced as follows:

“Art. 382. The deposit protection scheme established by the Guarantee Fund provides for the repayment of deposits, up to a maximum amount of 100,000 euros per depositor and per institution participating in this scheme, regardless of the currency in which they are expressed. The King adjusts this amount to bring it into line with the amount set by the European Commission to take into account inflation in the European Union.

In addition to the first paragraph, the following deposits enjoy protection of more than 100,000 euros for a period determined by a Royal Decree discussed in the Council of Ministers, of at least three months and at most twelve months after crediting the amount or from the time when those deposits can legally be transferred:

a) deposits resulting from real estate transactions regarding private homes; b) deposits related to certain life events of a depositor and which serve the social objectives designated by a Royal Decree discussed in the Council of Ministers. c) deposits based on the payout of insurance benefits or compensation for damages caused by criminal activities or wrongful conviction and which serve the objectives designated by a Royal Decree discussed in the Council of Ministers.

The King determines by a Royal Decree discussed in the Council of Ministers the amount, procedures and conditions for granting this additional protection per category of deposits falling under the previous paragraph.”.

Art. 8. Article 383 of the same law is supplemented by two paragraphs, reading:

"The use for advertising purposes of the information referred to in the first paragraph is limited to the mere mention of the deposit guarantee scheme that provides a guarantee for the product to which the advertisement relates. The King may authorize the communication of additional information.

The FSMA ensures compliance with this article and with the decrees taken for its implementation. For the exercise of this supervisory mission, it has the powers referred to in Articles 34, § 1, 1°, 35, §§ 1 and 2, 36, 36bis and 37 of the Law of 2 August 2002."

Art. 9. Article 384 of the same law is repealed.

Art. 10. Article 419 of the same law is replaced as follows:

"Art. 419. For the period from the date of entry into force of Article 419/2 to 31 December 2023, the repayment period determined in Article 381, third paragraph, is:
a) 20 working days for the period from the date of entry into force of Article 419/2 to 31 December 2018; b) 15 working days for the period from 1 January 2019 to 31 December 2020; c) 10 working days for the period from 1 January 2021 to 31 December 2023."

The King may, in derogation from the preceding paragraph, determine that the repayment period is shortened to the period mentioned in Article 381, third paragraph, before 31 December 2023."

Art. 11. (formerly Art. 12). In the same law, an Article 419/1 is inserted, reading:

"Art. 419/1. During the transitional period until 31 December 2023 defined in Article 419, the deposit protection scheme established by the Guarantee Fund ensures that when the Fund cannot make the repayable amount available within seven working days, depositors gain access within five working days after their request to an appropriate amount of their guaranteed deposits to cover living expenses.

This amount may never be higher than the amount of the guaranteed deposits and is deducted from the repayable amount referred to in Article 382. The King determines the amount and the modalities and conditions for the granting of this payment."

Art. 12. In the same law, an Article 419/2 is inserted, reading:

"Art. 419/2. For the application of Article 382, bonds and other banking debt instruments that, before the date of entry into force of Article 419/2, were guaranteed by the deposit guarantee scheme and that have an original maturity date, are covered by the deposit guarantee scheme until their original maturity date if they were deposited or issued before 2 July 2014. This protection may not lead to an exceedance of the limit set in Article 382, first paragraph, and applies only to depositors who were eligible for repayment before the date of entry into force of the provision inserting Article 419/2 into this law. The King may determine the modalities and conditions for this transitional scheme."

CHAPTER 3. — Amendments of the Royal Decree of 14 November 2008 implementing the Law of 15 October 2008 concerning measures to promote financial stability and in particular establishing a state guarantee for granted loans and other operations in the context of financial stability, regarding the protection of deposits, life insurance and the capital of recognized cooperative companies, and amending the Law of 2 August 2002 concerning supervision of the financial sector and financial services

Art. 13. The heading of the Royal Decree of 14 November 2008 implementing the Law of 15 October 2008 concerning measures to promote financial stability and in particular establishing a state guarantee for granted loans and other operations in the context of financial stability, regarding the protection of deposits, life insurance and the capital of recognized cooperative companies, and amending the Law of 2 August 2002 concerning supervision of the financial sector and financial services, replaced by the Royal Decree of 10 October 2011, is replaced as follows:

"Royal Decree of 14 November 2008 implementing the crisis measures provided for in the Law of 22 February 1998 establishing the organic statute of the National Bank of Belgium, regarding the establishment of the Guarantee Fund for financial services."

Art. 14. The heading of Chapter I of the same Royal Decree, amended by the Royal Decree of 10 October 2011, is replaced as follows:

"CHAPTER I. — Implementation of the crisis measures provided for in the Law of 22 February 1998 establishing the organic statute of the National Bank of Belgium, regarding the establishment of the Guarantee Fund for financial services."

Art. 15. Article 1 of the same Royal Decree is replaced by:

"Article 1. The articles of this Royal Decree implement certain provisions of Directive 2014/49/EU of the European Parliament and of the Council of 16 April 2014 on deposit guarantee schemes.

References in existing legislative, regulatory and administrative provisions to the directives repealed by Directive 2014/49/EU shall be understood as references to Directive 2014/49/EU."

Art. 16. Article 2/1 of the same Royal Decree, inserted by the Law of 29 December 2010, is repealed.

Art. 17. In Article 3 of the same Royal Decree, amended by the Royal Decree of 10 October 2011, the following changes are made:

1° the words "Special Protection Fund for deposits, life insurance and capital of recognized cooperative companies" are replaced by the words "Guarantee Fund for financial services", hereinafter referred to as "Guarantee Fund";

2° In the second paragraph, the word "fund" is replaced by the word "Guarantee Fund".

Art. 18. In Article 4, § 2, second and fourth paragraphs, § 3, fourth, seventh and ninth paragraphs, of the same Royal Decree, last amended by the Royal Decree of 10 October 2011, in Article 5, first paragraph, of the same Royal Decree, amended by the Royal Decree of 10 October 2011, in Article 7, of the same Royal Decree, last amended by the Royal Decree of 10 October 2011, in Article 8, § 1, first paragraph and § 2bis, first paragraph, of the same Royal Decree, last amended by the Royal Decree of 10 October 2011, in Article 9, § 1, first and second paragraphs, § 2, first paragraph, and § 6, of the same Royal Decree, last amended by the Royal Decree of 10 October 2011, in Article 9/1, first and third paragraphs, of the same Royal Decree, inserted by the Law of 29 December 2010, and last amended by the Royal Decree of 10 October 2011, and in Article 11, of the same Royal Decree, amended by the Royal Decree of 10 October 2011, the words "Special Protection Fund for deposits, life insurance and capital of recognized cooperative companies" are replaced by the word "Guarantee Fund".

Art. 19. In Article 4, § 2, second paragraph, of the same Royal Decree, last amended by the Royal Decree of 10 October 2011, and in Article 8, § 1, 1°bis, of the same Royal Decree, inserted by the Law of 28 December 2011, and amended by the Finance Act of 22 June 2012, and in Article 9, § 2, first and second paragraphs, of the same Royal Decree, amended by the Royal Decree of 10 October 2011, and in Article 9/1, first paragraph, of the same Royal Decree, inserted by the Law of 29 December 2010 and amended by the Royal Decree of 10 October 2011, the words "Special Protection Fund" are replaced by the word "Guarantee Fund".

Art. 20. In Article 6, § 2, fourth paragraph, 2°, of the same Royal Decree, amended by the Royal Decree of 3 March 2011, the words "Special Protection Fund for deposits and life insurance" are replaced by the word "Guarantee Fund".

Art. 21. In Article 6, § 3, second paragraph, of the same Royal Decree, amended by the Royal Decree of 10 October 2011, and in Article 8/1, third paragraph, of the same Royal Decree, inserted by the Law of 23 December 2009, and in Article 9, § 1, second paragraph, § 2, second paragraph, of the same Royal Decree, last amended by the Royal Decree of 10 October 2011, and in Article 9/1, third paragraph, of the same Royal Decree, inserted by the Law of 28 July 2011 and amended by the Royal Decree of 10 October 2011, the word "Fund" is replaced by the word "Guarantee Fund".

Art. 22. In Article 4, § 1, of the same Royal Decree, amended by the Law of 29 December 2010, the following changes are made:

a) the provision under 1°, is replaced as follows:

"Royal Decree of 14 November 2008 implementing the crisis measures provided for in the Law of 22 February 1998 establishing the organic statute of the National Bank of Belgium, regarding the establishment of the Guarantee Fund for financial services."

Art. 14. The heading of Chapter I of the same Royal Decree, amended by the Royal Decree of 10 October 2011, is replaced as follows:

"CHAPTER I. — Implementation of the crisis measures provided for in the Law of 22 February 1998 establishing the organic statute of the National Bank of Belgium, regarding the establishment of the Guarantee Fund for financial services."

Art. 15. Article 1 of the same Royal Decree is replaced by:

"Article 1. The articles of this Royal Decree implement certain provisions of Directive 2014/49/EU of the European Parliament and of the Council of 16 April 2014 on deposit guarantee schemes.

References made, in the legislative, regulatory and administrative provisions in force, to the directives repealed by Directive 2014/49/EU shall be understood as references to Directive 2014/49/EU."

Art. 16. Article 2/1 of the same Royal Decree, inserted by the Law of 29 December 2010, is repealed.

Art. 17. In Article 3 of the same Royal Decree, amended by the Royal Decree of 10 October 2011, the following changes are made:

1° the words "Special Protection Fund for deposits, life insurance and capital of recognized cooperative companies" are replaced by the words "Guarantee Fund for financial services", hereinafter referred to as "Guarantee Fund";

2° in the second paragraph, the word "fund" is replaced by the words "Guarantee Fund".

Art. 18. In Article 4, § 2, second and fourth paragraphs, § 3, fourth, seventh and ninth paragraphs, of the same Royal Decree, last amended by the Royal Decree of 10 October 2011, in Article 5, first paragraph, of the same Royal Decree, amended by the Royal Decree of 10 October 2011, in Article 7, of the same Royal Decree, last amended by the Royal Decree of 10 October 2011, in Article 8, § 1, first paragraph and § 2bis, first paragraph, of the same Royal Decree, last amended by the Royal Decree of 10 October 2011, in Article 9, § 1, first and second paragraphs, § 2, first paragraph, and § 6, of the same Royal Decree, last amended by the Royal Decree of 10 October 2011, in Article 9/1, first and third paragraphs, of the same Royal Decree, inserted by the Law of 29 December 2010 and last amended by the Royal Decree of 10 October 2011, and in Article 11, of the same Royal Decree, amended by the Royal Decree of 10 October 2011, the words "Special Protection Fund for deposits, life insurance and capital of recognized cooperative companies" are replaced by the words "Guarantee Fund".

Art. 19. In Article 4, § 2, second paragraph, of the same Royal Decree, last amended by the Royal Decree of 10 October 2011, and in Article 8, § 1, 1°bis, of the same Royal Decree, inserted by the Law of 28 December 2011 and amended by the Finance Act of 22 June 2012, and in Article 9, § 2, first and second paragraphs, of the same Royal Decree, amended by the Royal Decree of 10 October 2011, and in Article 9/1, first paragraph, of the same Royal Decree, inserted by the Law of 29 December 2010 and amended by the Royal Decree of 10 October 2011, the words "Special Protection Fund" are replaced by the words "Guarantee Fund".

Art. 20. In Article 6, § 2, fourth paragraph, 2°, of the same Royal Decree, amended by the Royal Decree of 3 March 2011, the words "Special Protection Fund for deposits and life insurance" are replaced by the words "Guarantee Fund".

Art. 21. In Article 6, § 3, second paragraph, of the same Royal Decree, amended by the Royal Decree of 10 October 2011, and in Article 8/1, third paragraph, of the same Royal Decree, inserted by the Law of 23 December 2009, and in Article 9, § 1, second paragraph, § 2, second paragraph, of the same Royal Decree, last amended by the Royal Decree of 10 October 2011, and in Article 9/1, third paragraph, of the same Royal Decree, inserted by the Law of 28 July 2011 and amended by the Royal Decree of 10 October 2011, the word "Fund" is replaced by the words "Guarantee Fund".

Art. 22. In Article 4, § 1, of the same Royal Decree, amended by the Law of 29 December 2010, the following changes are made:

a) the 1°, is replaced by what follows:

"1° credit institutions referred to in Article 380, first paragraph, of the Law of 25 April 2014 on the status and supervision of credit institutions;"

b) the provision under 3° is repealed;

c) the provision under 4° is replaced as follows: "4° the management companies of collective investment undertakings and the management companies of AICBs, as referred to in Article 112 of the Law of 6 April 1995 on the status and supervision of investment firms, insofar as they provide the investment service of individual portfolio management."

Art. 23. In Article 5 of the same Royal Decree, amended by the Royal Decree of 10 October 2011, the following amendments are made:

a) in the first paragraph, the provision under 1° is replaced as follows:
"1° deposits, including registered cash bonds and dematerialized cash bonds registered on nominal accounts, as referred to in Article 3, 68°, of the Law of 25 April 2014 on the status and supervision of credit institutions";

b) in the first paragraph, the provision under 2° is replaced as follows:
"2° insofar as they are not included under 1°, cash deposits held for the account of investors with a view to being used for the acquisition of financial instruments or their repayment;"

c) the third paragraph is replaced as follows:
"The King determines the categories of assets and depositors excluded from the scope of protection of the Guarantee Fund."

Art. 24. In the same Royal Decree, an Article 5/1 is inserted, reading:
"Art. 5/1. The King determines the payment methods for reimbursements.

Depositors at branches established in Belgium by credit institutions governed by the law of another Member State of the European Economic Area are reimbursed by the Guarantee Fund on behalf of and in accordance with the instructions of the deposit guarantee system of the Member State where the credit institution is established.

The Guarantee Fund shall only carry out these reimbursements after it has received the necessary pre-financing and instructions from the deposit guarantee system of the Member State concerned. The Guarantee Fund cannot be held liable for actions carried out in accordance with said instructions.

Depositors at branches established by a Belgian credit institution in another Member State are informed and reimbursed by the deposit guarantee system of the Member State where the branch is established, on behalf of and in accordance with the instructions of the Guarantee Fund.

To promote cooperation with deposit guarantee systems of other States, the Guarantee Fund concludes agreements with them."

Art. 25. In Article 6 of the same Royal Decree, lastly amended by the Royal Decree of 10 October 2011, the following amendments are made:

1° paragraph 1 is replaced as follows:
"§ 1. In the event of bankruptcy of an institution referred to in Article 4, § 1, 1°, or by a decision taken by the supervisor pursuant to Article 381, second paragraph, of the Law of 25 April 2014 on the status and supervision of credit institutions, the maximum amount of the Guarantee Fund's contribution is fixed in Article 382 of that Law.

In the event of default of an institution referred to in Article 4, § 1, 2° and 4°, § 2 and § 3, the Guarantee Fund contributes up to a maximum of 100,000 euros. The King adjusts this amount to bring it into line with the amount determined by the European Commission to take into account inflation in the European Union."

2° in paragraph 2, fourth paragraph, 2°, the words "the Financial Services and Markets Authority" are replaced by the words "the National Bank of Belgium".

3° paragraph 4 is replaced as follows:
"§ 4. The use of information for advertising purposes is limited to merely mentioning the deposit guarantee system that provides a guarantee for the product to which the advertisement relates.

The King may authorize the communication of additional information."

Art. 26. In Article 7 of the same Royal Decree, replaced by the Law of 23 December 2009 and amended by the Royal Decree of 10 October 2011, the following amendments are made:

1° the words "by annual contributions" are replaced by the words "by periodic and extraordinary contributions".

2° the words "1° to 3°" are replaced by the words "1° and 2°".

Art. 27. In Article 8 of the same Royal Decree, lastly amended by the Law of 22 June 2012, the following amendments are made:

1° in paragraph 1, first paragraph, 1°, the words "and 3°" are deleted;

2° in the table in paragraph 1, first paragraph, 1°bis, the words "Liquidity ratio of the National Bank of Belgium" are replaced by the words "Liquidity coverage requirement as defined in Delegated Regulation (EU) No 2015/61 of the Commission of 10 October 2014 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to the liquidity coverage requirement for credit institutions.";

3° in paragraph 1, first paragraph, 1°bis, a sentence is inserted after the table of key indicators, reading:
"The King may, by a decree discussed in the Council of Ministers, establish additional risk indicators to be used for the calculation of risk-based contributions.";

4° in paragraph 1, first paragraph, a 1°ter is inserted, reading:
"1°ter. For the institutions referred to in Article 4, § 1, 1° and 2°, with the exception of wealth management and investment advisory companies, the base is formed by covered deposits, as determined by Article 3, 68°, of the Law of 25 April 2014 on the status and supervision of credit institutions. Until 31 May 2016, the base remains formed by eligible deposits, as they were determined for the date of entry into force of Article 5/1. The available resources of the Guarantee Fund resulting from the contributions referred to in the first paragraph must reach at least a target amount of 0.8 pct. of the amount of covered deposits by 3 July 2024 at the latest. This date is postponed by six years if, after the target amount has been reached for the first time, the available financial resources of the Guarantee Fund have been reduced to less than two thirds of the target amount due to reimbursements. The King may postpone the date mentioned in the second paragraph by a maximum of four years if the Guarantee Fund has carried out cumulative reimbursements amounting to more than 0.8 pct. of covered deposits. The King may decide that the available financial resources taken into account to reach the target amount include payment obligations and may determine the application procedures thereof. The total of these obligations may not exceed 30 pct. of the total amount of available financial resources formed by the contributions pursuant to this article.";

5° in paragraph 1, first paragraph, a 1°quater is inserted, reading:
"1°quater. By way of derogation from Article 8, § 1, 1°ter, second paragraph, the King may, in justified cases and with the approval of the European Commission, by a decree discussed in the Council of Ministers, allow a lower minimum target amount provided that the following conditions are met:
a) the reduction is based on the assumption that it is unlikely that a significant part of the available financial resources will be used for measures to protect covered depositors described in Article 380, first paragraph, penultimate sentence of the Law of 24 April 2014 on the status and supervision of credit institutions, and b) the banking sector in which the credit institutions affiliated to the deposit guarantee system operate features a strong concentration of large amounts of assets held by a small number of credit institutions or banking groups, which are subject to consolidated supervision and which, given their size, would likely be subject to a resolution procedure in the event of default."

The reduced target amount may not be lower than 0.5% of the covered deposits."; 6° in paragraph 1, the second paragraph is replaced as follows:
"In the event of participation in the Guarantee Fund during the course of a year, the amounts referred to in the first paragraph are due pro rata temporis and are calculated on the basis of the covered balances at the time of admission."; 7° in paragraph 2bis, the words "Article 7 of the Law of 22 March 1993 on the status and supervision of credit institutions" are replaced by the words "Article 7 of the Law of 25 April 2014 on the status and supervision of credit institutions"; 8° in paragraph 3, the second paragraph is replaced as follows:
"The King determines the valuation and calculation method for the entry contribution to be paid by the credit institutions and investment firms referred to in the first paragraph, which participate for the first time from 16 December 2010 and for which insufficient contributions are paid from a deposit protection scheme to which they previously belonged. He may determine the modalities for the payment of this entry contribution.". Art. 28. In Article 8/1 of the same Royal Decree, inserted by the Law of 23 December 2009 and amended by the Royal Decree of 10 October 2011, the following changes are made:
1° the first paragraph is replaced as follows: "The claims of the Guarantee Fund in principal, interest and ancillary charges against a participant in the Guarantee Fund, on account of the resources of the protection systems referred to in Article 7, are privileged on all movable property of that participant"; 2° in the French text of the second paragraph, the word "hypothéquaire" is replaced by the word "hypothécaire". Art. 29. In Article 9 of the same Royal Decree, last amended by the Royal Decree of 10 October 2011, the following changes are made:
1° paragraph 3 is replaced as follows:
"§ 3. In the event that the assets of the Guarantee Fund are insufficient and in the event that a portfolio management and investment advice company or a company referred to in Article 4, § 1, 4°, fails to comply, the Deposit and Consignment Office advances the funds in order to reimburse the clients of the failing institution."; 2° in paragraph 4, the first paragraph is replaced as follows:
"§ 4. In the event that the assets of the Guarantee Fund, following the repayment of the clients of a failing institution referred to in Article 4, § 1, 1° and 2°, excluding portfolio management and investment advice companies, are insufficient, these institutions are liable for extraordinary contributions in order to cover the cost of the intervention of the Guarantee Fund or to repay the amount advanced by the Deposit and Consignment Office, including the financing interest calculated at the prevailing market rate for the corresponding repayment period. The extraordinary contributions are calculated, as the case may be, on the deposits or on the inventory reserves of the protected contracts, which were used for the calculation of the periodic contributions referred to in Article 8. By a decree deliberated in the Council of Ministers, the King determines the level of the extraordinary contributions based on the level of the financial means required to cover the relevant intervention by the Guarantee Fund. The King also determines the calculation and payment modalities applicable to the extraordinary contributions. The extraordinary contributions may not exceed 0.5% of the calculation bases used per calendar year."; The revised target level may not be lower than 0.5% of the covered deposits."; 6° in paragraph 1, the second paragraph is replaced as follows:
"In the event of participation in the Guarantee Fund during the course of a year, the amounts referred to in the first paragraph are due pro rata temporis and are calculated on the basis of the covered balances at the time of admission."; 7° in paragraph 2bis, the words "Article 7 of the Law of 22 March 1993 on the status and supervision of credit institutions" are replaced by the words "Article 7 of the Law of 25 April 2014 on the status and supervision of credit institutions"; 8° in paragraph 3, the second paragraph is replaced as follows:
"The King determines the valuation and calculation method for the entry contribution to be paid by the credit institutions and investment firms referred to in the first paragraph, which participate for the first time from 16 December 2010 and for which insufficient contributions are paid from a deposit protection scheme to which they previously belonged. He may determine the modalities for the payment of this entry contribution.". Art. 28. In Article 8/1 of the same Royal Decree, inserted by the Law of 23 December 2009 and amended by the Royal Decree of 10 October 2011, the following changes are made:
1° the first paragraph is replaced as follows: "The claims of the Guarantee Fund in principal, interest and ancillary charges against a participant in the Guarantee Fund, on account of the resources of the protection systems referred to in Article 7, are privileged on all movable property of that participant"; 2° in the second paragraph, the word "hypothéquaire" is replaced by the word "hypothécaire". Art. 29. In Article 9 of the same Royal Decree, last amended by the Royal Decree of 10 October 2011, the following changes are made:
1° paragraph 3 is replaced as follows:
"§ 3. In the event of insufficiency of assets of the Guarantee Fund and in the event of default of a portfolio management and investment advice company or a company referred to in Article 4, § 1, 4°, the Deposit and Consignment Office advances the funds in order to reimburse the clients of the failing institution."; 2° in paragraph 4, the first paragraph is replaced as follows:
"§ 4. In the event of insufficiency of assets of the Guarantee Fund, following the repayment of the clients of a failing institution referred to in Article 4, § 1, 1° and 2°, excluding portfolio management and investment advice companies, extraordinary contributions are due by these institutions, in order to cover the cost of the intervention of the Guarantee Fund or to repay the advance made by the Deposit and Consignment Office, including the financing interest, calculated at the prevailing market rate for the corresponding repayment period. The extraordinary contributions are calculated, as the case may be, on the deposits or on the inventory reserves of the protected contracts, used for the calculation of the regular contributions referred to in Article 8. The King determines, by a decree deliberated in the Council of Ministers, the level of the extraordinary contributions based on the level of the financial means required to cover the relevant intervention of the Guarantee Fund. The King also determines the calculation and payment modalities applicable to the extraordinary contributions. The extraordinary contributions may not, per calendar year, exceed more than 0.5% of the calculation bases used."; BELGIAN STATE GAZETTE — 12.05.2016 — MONITEUR BELGE 31143

3° paragraph 5 is replaced as follows:
"§ 5. In the event that the assets of the Guarantee Fund, following the repayment of the clients of a failing institution referred to in Article 4, § 2, are insufficient, 50% of the subsequent contributions are used to repay the amount advanced by the Deposit and Consignment Office.". Art. 30. In Article 9/1 of the same Royal Decree, inserted by the Law of 29 December 2010 and amended by the Royal Decrees of 28 July 2011 and 10 October 2011, the second paragraph is replaced as follows:
"An exception is made to the prohibition of the first paragraph for the provision of information to the national authorities and to the authorities of the European Union and of other States, responsible for the prudential supervision of the institutions and companies referred to in this Decree, to the Deposit and Financial Instruments Protection Fund and to the institutions managing deposit or life insurance protection systems of other States, in the context of the necessary cooperation with these institutions.". Art. 31. Chapter 2 of the same Royal Decree containing Article 12 is repealed.
CHAPTER 4. — Amendment of the Law of 17 December 1998 establishing a deposit and financial instruments protection fund and reorganizing the deposit and financial instruments protection systems
Art. 32. In Article 3 of the Law of 17 December 1998 establishing a deposit and financial instruments protection fund and reorganizing the deposit and financial instruments protection systems, the provision under a) is repealed.
CHAPTER 5. — Amendment of the Law of 2 August 2002 concerning the supervision of the financial sector and financial services
Art. 33. Article 45, § 1, 3°, of the Law of 2 August 2002 concerning the supervision of the financial sector and financial services, last amended by the Law of 25 April 2014, is supplemented with the provision under j), reading:
"j. Article 383 of the Law of 25 April 2014.".
CHAPTER 6. — Final provisions
Art. 34. This law enters into force on the day on which it is published in the Belgian State Gazette, with the exception of:
1° Article 10, the entry into force of which will be determined by the King, but will take place no later than 31 May 2016; 2° Article 27, 2°, which enters into force on 1 January 2017.
We proclaim this law, order that it be sealed with the State Seal and published in the Belgian State Gazette.
Given in Brussels, 22 April 2016.
FILIP
By the King:
The Minister of Finance,
J. VAN OVERTVELDT
Sealed with the State Seal:
The Minister of Justice,
K. GEENS
Note
(1) Chamber of Representatives (www.dekamer.be):
Documents: 54-1656
Full report: 13 and 14 April 2016.
3° paragraph 5 is replaced as follows:
"§ 5. In the event of insufficiency of assets of the Guarantee Fund, following the repayment of the clients of a failing institution referred to in Article 4, § 2, 50% of subsequent contributions are used to repay the advance made by the Deposit and Consignment Office.".
Art. 30. In Article 9/1 of the same Royal Decree, inserted by the Law of 29 December 2010, and amended by the Royal Decrees of 28 July 2011 and 10 October 2011, the second paragraph is replaced as follows:
"An exception is made to the prohibition provided for in the first paragraph for the communication of information to the national authorities and to the authorities of the European Union and of other States which are responsible for the prudential supervision of the establishments and companies covered by this Decree, to the Deposit and Financial Instruments Protection Fund and to the bodies managing deposit or life insurance protection systems of other States, in the context of the necessary collaboration with these bodies.". Art. 31. Chapter 2 of the same Royal Decree, comprising Article 12, is repealed.
CHAPTER 4. — Amendment of the Law of 17 December 1998 creating a deposit and financial instruments protection fund and reorganizing the deposit and financial instruments protection systems
Art. 32. In Article 3 of the Law of 17 December 1998 creating a deposit and financial instruments protection fund and reorganizing the deposit and financial instruments protection systems, a) is repealed.
CHAPTER 5. — Amendment of the Law of 2 August 2002 concerning the supervision of the financial sector and financial services
Art. 33. Article 45, § 1, 3°, of the Law of 2 August 2002 concerning the supervision of the financial sector and financial services, last amended by the Law of 25 April 2014, is supplemented by a j), drafted as follows:
"j. Article 383 of the Law of 25 April 2014.".
CHAPTER 6. — Final provisions
Art. 34. This law enters into force on the day of its publication in the Belgian State Gazette, with the exception of:
1° Article 10, the entry into force of which will be fixed by the King but will take place no later than 31 May 2016; 2° Article 27, 2°, which enters into force on 1 January 2017.
We promulgate this law, order that it be covered with the State Seal and published by the Belgian State Gazette.
Given in Brussels, 22 April 2016.
PHILIPPE
By the King:
The Minister of Finance,
J. VAN OVERTVELDT
Sealed with the State Seal:
The Minister of Justice,
K. GEENS
Note
(1) Chamber of Representatives (www.lachambre.be):
Documents: 54-1656
Full report: 13 and 14 April 2016.
31144 BELGIAN STATE GAZETTE — 12.05.2016 — MONITEUR BELGE