Ministerial Decision of 7 December 2016 renewing the recognition of a centralized system for the lending and borrowing of financial instruments

FEDERAL PUBLIC SERVICE FINANCES [C − 2016/03445] 7 DECEMBER 2016. — Ministerial Decision renewing the recognition of a centralized system for the lending and borrowing of financial instruments taken in implementation of Articles 735 to 7312 of the Royal Decree implementing the Income Tax Code 1992 (KB/WIB 92) fixing the recognition conditions to which a centralized system for the lending and borrowing of financial instruments integrated into a payment and settlement system for securities transactions must comply and the period during which the recognition may be granted.

The Minister of Finance,

Having regard to Article 261, third paragraph, of the Income Tax Code 1992 (WIB 92), introduced by Article 54, 3°, of the Law of 15 December 2004 concerning financial collateral and containing various provisions regarding commercial security agreements and loans relating to financial instruments;

Having regard to Articles 735 to 7312 of the Royal Decree implementing the WIB 92 (KB/WIB 92), introduced by the Royal Decree of 29 November 2000 fixing the conditions to which a centralized system for the lending and borrowing of shares integrated into a payment and settlement system for securities transactions must comply and the period during which the recognition may be granted, and amended by Articles 2 to 9 of the Royal Decree of 20 January 2005 amending the KB/WIB 92 regarding withholding tax on income paid or granted in implementation of commercial security agreements and loans relating to financial instruments;

Having regard to the Ministerial Decision of 1 October 2004 recognizing the centralized system for the lending and borrowing of financial instruments managed by Euroclear Bank as a centralized system for the lending and borrowing of shares within the meaning of Article 735 of the KB/WIB 92;

Having regard to the fact that the aforementioned recognition was renewed by Ministerial Decisions of 20 November 2006 for a period of five years from 1 January 2007 to 31 December 2011, and of 25 November 2011 for an additional period of five years from 1 January 2012 to 31 December 2016;

Having regard to the application submitted by Euroclear Bank on 18 November 2016, to renew the recognition as a centralized system for the lending and borrowing of financial instruments within the meaning of Article 735 of the KB/WIB 92 of the centralized system for the lending and borrowing of financial instruments managed by Euroclear Bank;

Having regard to the general terms and conditions applicable to the centralized system for the lending and borrowing of financial instruments managed by Euroclear Bank, named "Supplementary Terms and Conditions governing the Lending and Borrowing of Securities through Euroclear", and supplemented by Part II-D - Securities Lending and Borrowing of the "Operating Procedures of the Euroclear System";

Considering that the centralized system for the lending and borrowing of financial instruments managed by Euroclear Bank partially complies with the conditions provided for in Article 736 of the KB/WIB 92,

Decides:

Article 1. The centralized system for the lending and borrowing of financial instruments managed by Euroclear Bank is recognized as a centralized system for the lending and borrowing of financial instruments as referred to in Article 261, third paragraph, of the WIB 92, to the extent that participants do not make use of contractual clauses that do not allow the conditions referred to in Article 736 of the KB/WIB 92 to be respected.

Art. 2. This recognition is renewed for the period running from 1 January 2017 to 31 December 2021, except in the event of loss of recognition under the circumstances mentioned in Articles 7310 and 7312 of the KB/WIB 92. The publication of this Ministerial Decision in the Belgian State Gazette shall constitute notification.

Art. 3. It is the responsibility of the manager of the centralized system to inform its participants of:

• the date from which it no longer makes use of this recognition;
• the categories of financial instruments eligible for the centralized system for which the manager makes use of the recognition, and
• the clauses of the general terms and conditions that do not meet the conditions referred to in Article 736 of the KB/WIB 92.

Brussels, 7 December 2016. J. VAN OVERTVELDT