Royal Decree of 1 March 2019 amending the Royal Decree of 23 September 1992 on the annual accounts of credit institutions, investment firms and collective investment management companies

FEDERAL PUBLIC SERVICE FINANCES
[C − 2019/40730]
1 MARCH 2019. — Royal Decree amending the Royal Decree of 23 September 1992 on the annual accounts of credit institutions, investment firms and management companies of collective investment undertakings

REPORT TO THE KING

Sire,

The Royal Decree submitted for Your signature aims to amend the Royal Decree of 23 September 1992 on the annual accounts of credit institutions, investment firms and management companies of collective investment undertakings (hereinafter referred to as the "Royal Decree of 23 September 1992").

Point 4.4.2. of the report by the Optima Commission recommends strengthening the disclosure of information concerning transactions with related parties in the annual accounts of Belgian banks. The report specifically recommends drawing inspiration from IFRS accounting standards in this regard (namely IAS 24, Related Party Disclosures).

The information that the establishments concerned must disclose in the notes to their statutory annual accounts concerning transactions carried out with related parties is governed by the annex to the aforementioned Royal Decree of 23 September 1992.

Point XXVIII.E of Chapter 1, Section III, of that annex relates to off-balance-sheet rights and obligations resulting from transactions with related parties. Unlike other information to be published in the notes to the accounts concerning transactions with related parties, this provision allows for not disclosing information on transactions that (a) were concluded under normal market conditions or (b) occurred between two or more members of a group. These exemptions are mentioned in the report by the Optima Commission and are not permitted by the aforementioned IAS 24 standard. It is therefore proposed to delete these two exemptions to strengthen transparency as desired.

It should be noted that the possibility of using these exemptions was an option offered to Member States in Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC. These exemptions were included in both general accounting law (Royal Decree of 30 January 2001 implementing the Companies Code) and banking accounting law (Royal Decree of 23 September 1992).

Article-by-article discussion

Article 1. This article provides for the repeal of the two exemptions from the obligation to include in the notes to the annual accounts transactions (a) which were carried out under normal market conditions or (b) between two or more members of a group.

Art. 2. This article stipulates that the new provisions will apply for the first time for the financial year 2019 (beginning on or after 1 January 2019).

I have the honour to be,

Sire,

Your Majesty's most respectful and most faithful servant,

The Deputy Prime Minister and Minister of Finance, A. DE CROO

Advice 65.342/2 of 27 February 2019 on a draft Royal Decree "amending the Royal Decree of 23 September 1992 on the annual accounts of credit institutions, investment firms and management companies of collective investment undertakings"

On 4 February 2019, the Council of State, Legislation Section, was invited by the Deputy Prime Minister and Minister of Finance, responsible for Combating Tax Fraud, and Minister of Development Cooperation, to provide advice within thirty days on a draft Royal Decree "amending the Royal Decree of 23 September 1992 on the annual accounts of credit institutions, investment firms and management companies of collective investment undertakings".

The draft was examined by the Second Chamber on 27 February 2019.
The chamber was composed of Pierre Vandernoot, Chamber President, Luc Detroux and Patrick Ronvaux, Councillors of State, Sébastien Van Drooghenbroeck and Jacques Englebert, Assessors, and Béatrice Drapier, Clerk.
The report was presented by Jean-Luc Paquet, First Auditor.
The concordance between the French and Dutch versions of the advice was verified under the supervision of Pierre Vandernoot.
The advice, the text of which follows, was given on 27 February 2019.
*

Taking into account the time at which this advice is given, the Council of State draws attention to the fact that, due to the resignation of the Government, its competence is limited to handling current business. However, this advice is given without examining whether the draft falls within this limited competence, as the Legislation Section is not aware of all the factual elements that the Government may take into consideration when assessing the need to adopt or amend regulatory provisions.

Since the request for advice was submitted on the basis of Article 84, § 1, first paragraph, 2°, of the laws "on the Council of State", coordinated on 12 January 1973, the Legislation Section limits its examination to the legal basis of the draft, the competence of the author of the act and the prior formalities to be fulfilled, in accordance with Article 84, § 3, of the aforementioned coordinated laws.

Regarding these three points, no comment needs to be made on the draft.

The Clerk, The President,
B. Drapier P. Vandernoot

1 MARCH 2019. — Royal Decree amending the Royal Decree of 23 September 1992 on the annual accounts of credit institutions, investment firms and management companies of collective investment undertakings

PHILIPPE, King of the Belgians,

To all present and future, Greetings.

Having regard to the Law of 25 April 2014 on the status and supervision of credit institutions, Article 106, § 1, second paragraph;

Having regard to the Royal Decree of 23 September 1992 on the annual accounts of credit institutions, investment firms and management companies of collective investment undertakings;

Having regard to the opinion of the National Bank of Belgium, given on 30 October 2018;

Having regard to the consultation of professional associations;

Having regard to Advice 65.342/2 of the Council of State, given on 27 February 2019;

On the proposal of the Minister of Finance,

We have decided and decide:

Article 1. In point XXVIII.E of Chapter 1, Section III, of the annex to the Royal Decree of 23 September 1992 on the annual accounts of credit institutions, investment firms and management companies of collective investment undertakings, replaced by the Royal Decree of 28 September 2008, the following amendments are made:

1° in the first paragraph, the words "which were not carried out under normal market conditions" are deleted;

2° the fourth paragraph is repealed.

Art. 2. This Decree applies for the first time to the financial year beginning on 1 January 2019 or during the calendar year 2019.

Art. 3. This Decree takes effect from 1 January 2019.

Art. 4. The Minister competent for Finance is charged with the implementation of this Decree.

Given in Brussels, 1 March 2019.

PHILIPPE

By the King:

The Deputy Prime Minister and Minister of Finance, A. DE CROO