Royal Decree of 22 December 2020 implementing the Law of 3 April 2019 on the withdrawal of the United Kingdom from the European Union

1 22 December 2020 Royal Decree implementing Article 20, first paragraph of the Law of 3 April 2019 on the withdrawal of the United Kingdom from the European Union with respect to insurance companies, insurance intermediaries, ancillary insurance intermediaries and reinsurance intermediaries Report to the King Your Majesty, This draft Royal Decree implements Article 20, first paragraph of the Law of 3 April 2019 on the withdrawal of the United Kingdom from the European Union, more commonly known as the Brexit Law, with respect to insurance companies. In particular, it aims to organise appropriate supervision of insurance companies governed by the law of the United Kingdom or Gibraltar which will cease operating in Belgium as from the date of expiry of the transitional period granted to the United Kingdom in the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community. For the sake of convenience, this date is referred to in this Decree as "the date of the withdrawal of the United Kingdom from the European Union". As from that date, the United Kingdom will no longer enjoy the benefits of the Single Market and the aforementioned insurance companies will no longer benefit from a European passport. This Royal Decree allows such companies to continue to manage their existing Belgian contracts until their expiry date. In the European Union, an authorisation obtained in one of the Member States to pursue insurance business is valid throughout the Union (see Article 15(1) of the Solvency II Directive). By virtue of the principle of the single licence and consequently of the European passport, companies wishing to pursue insurance business in the territory of another Member State, whether through a branch or under the freedom to provide services, need only notify their intention to the supervisory authority, which will forward the information to the supervisory authority of the host Member State. However, companies governed by the law of a country which is not a member of the European Union may pursue insurance business in Belgium only on the condition that they establish a branch in the country that has been previously authorised by the National Bank of Belgium (Article 584 of the Law of 13 March 2016). As from the withdrawal of the United Kingdom from the European Union and in the absence of an agreement between the European Union and the United Kingdom, British companies will lose the benefit of the European passport. Consequently, the companies concerned will no longer be able to pursue insurance business in Belgium unless this condition is met.

2 A number of British companies have already decided to cease operating in Belgium. However, these companies will continue to manage their existing insurance contracts until the final maturity of all their obligations. This management ─ and in particular claims management ─ must be considered as an insurance activity for which the authorisation of a branch in Belgium is, in principle, required. An insurance company under Belgian law may renounce its authorisation when it decides to cease its activities. Such renunciation may be recorded by the Bank even if the company still has obligations (Article 538 of the Law of 13 March 2016). Article 543 of the Law of 13 March 2016 provides that such renunciation entails the prohibition to underwrite new contracts and Article 545 specifies that the company remains subject to the supervision of the Bank "until all of its insurance (...) policies and all obligations pertaining thereto are settled”. The Bank may however exempt such a company from some of the provisions of the Law of 13 March 2016. It should be noted that the aforementioned articles are applicable to branches in third countries in accordance with Article 599 of the Law of 13 March 2016. According to these principles, a British insurance company which decides not to underwrite new contracts in Belgium after the date of Brexit must therefore seek authorisation for a branch pursuant to Article 584 but could, at the same time, renounce this authorisation in accordance with Articles 538 and 599 on the grounds that it will not underwrite new contracts in Belgium, and be subject to the aforementioned provisions. In order to avoid such a complication, the draft Decree lays down, for British insurance companies which will cease to underwrite contracts in Belgium as from the date of the withdrawal of the United Kingdom from the European Union, a regime which is similar to that laid down in Article 545 of the Law of 13 March 2016 for Belgian companies. Unless British companies have chosen another option, such as a portfolio transfer or authorisation of a branch or subsidiary in Belgium, the regime laid down in the draft Decree is, in principle, the only one which allows British companies to manage their existing contracts after Brexit without exposing themselves to sanctions for illegally pursuing insurance business in Belgium. In this respect, it should be noted that the loss of authorisation following the withdrawal of the United Kingdom from the European Union does not per se constitute a valid reason for unilaterally terminating or modifying insurance contracts governed by the Law of 4 April 2014 on insurance. Consequently, British companies are obliged to continue to service such contracts. Insurance companies benefiting from this derogatory regime will remain subject to all the information obligations and rules of conduct applicable in Belgium to their activities, in accordance with Chapter 5 of the Law of 4 April 2014 on insurance. (…)

3 Commentary on the articles Chapter I - General provisions Article 1 This article contains the definitions that are important for the correct application and interpretation of the Decree. Chapter II - Provisions applicable to insurance companies Article 2 Paragraph 1 of the draft article specifies its scope ratione personae. Its scope is limited to insurance companies governed by the law of the United Kingdom or Gibraltar which, at the date of the withdrawal of the United Kingdom from the European Union, were authorised to pursue insurance business in Belgium either through a Belgian branch (Articles 550 to 555 of the Law of 13 March 2016) or under the freedom to provide services (Articles 556 to 561 of the Law of 13 March 2016). Among these companies, only those which, as from the date of the withdrawal of the United Kingdom from the European Union, cease operating in Belgium and limit themselves to managing their existing contracts, are concerned. The regime laid down in the draft Decree does not apply to activities that a company governed by the law of the United Kingdom or Gibraltar would like to develop in Belgium after the date of the withdrawal of the United Kingdom from the European Union. For such activities, the companies concerned must submit a file to the Bank with a view to obtaining authorisation for a Belgian branch (Article 584 et seq. of the Law of 13 March 2016). As confirmed by draft Article 5 (see below), these companies may, during the period of examination of the application for authorisation, benefit from the regime laid down in this Chapter. It is obvious that the draft article does not apply either to companies that do not currently have ongoing insurance contracts in Belgium. The draft article thus complies with the empowerment criteria set out in Article 20, first paragraph of the aforementioned Law of 3 April 2019. Paragraph 2 provides that the companies described above will not be obliged to establish in Belgium an insurance branch authorised by the Bank (derogation from Article 584 of the Law of 13 March 2016). In addition to the fact that business in Belgium must be limited to the management of contracts concluded before the date of the withdrawal of the United Kingdom from the European Union, the derogation is subject to compliance with all the conditions listed in § 2 of the draft article. There are height such conditions. The first condition is that the company confirms to the Bank its intention to benefit from the regime introduced by this Royal Decree.

4 The second condition, which follows directly from the first, is that, from the date of the withdrawal of the United Kingdom from the European Union, the company may no longer underwrite insurance contracts. This condition is equivalent to the renunciation of authorisation, which is a prerequisite, for Belgian companies, for application of Article 545 of the Law of 13 March 2016. The notion of “new contract” includes the renewal, tacit or otherwise, of ongoing contracts. In other words, the contracts must end at their first expiry date. Two exceptions are provided for. The first concerns the conversion of the capital of a life insurance policy into an annuity (or vice versa). The second is the continuation on an individual basis of health insurance contracts linked to professional activity as referred to in Article 208 of the Law of 4 April 2014. The third condition is proof that the British company is authorised, in the United Kingdom or Gibraltar, to pursue the insurance activities that relate to the Belgian contracts. The insurance company must effectively be subject to supervision by the authorities of its home country, in order to guarantee that its operations in Belgium are carried through. The fourth condition reinforces the previous one by requiring that the company fulfils all requirements, inter alia as regards its solvency. The fifth condition is inspired by Article 538, § 2, first paragraph of the Law of 13 March 2016, and requires that a company which ceases its activities submits to the Bank a plan stating the manner in which it shall settle its obligations. According to the commentary on the aforementioned article, this plan allows to verify whether the way in which the company intends to settle its outstanding obligations provides the necessary guarantees to safeguard the rights of the insurance or reinsurance creditors. It must thus contain a credible estimate of the expected financial flows, to permit verification of whether the necessary resources are available to honour ongoing contracts (see parliamentary documents n° 54, 1584/1 and n° 54, 1584/4). The sixth condition is a commitment by the company to support the Belgian activities operationally and financially. Even if these activities are in liquidation and their volume is gradually decreasing, the company must provide sufficient resources for their management and, in particular, to ensure that claims for compensation are handled correctly and efficiently and that such compensation corresponds to that provided for in the contracts. The seventh condition is more general and allows the Bank to request any information it deems necessary to monitor the activities in liquidation. This may be financial data relating to the contracts concerned or information on the operational and human resources implemented for the management of Belgian contracts. Finally, the eighth condition imposes a form of presence of the company in Belgium. If the company had set up a branch in Belgium before the withdrawal of the United Kingdom from the European Union, it would naturally be represented by the authorised agent designated in accordance with Article 593 of the Law of 13 March 2016. Companies which before the withdrawal of the United Kingdom from the European Union operated under the freedom to provide services, are required,

5 according to the draft provision, to designate a representative with powers similar to those of the authorised agent. The second paragraph of draft § 2 requires the information communicated to the Bank to be updated. This updating shall be carried out at least annually and, in any event, following any significant change in the conditions for pursuing business in Belgium, such as, for example, the fact that the company must draw up a recovery or reorganisation plan, or any significant change in the prudential legislation applicable in its country of origin. Article 3 The draft article stipulates that the Bank shall submit the liquidation plan for the Belgian portfolio of the insurance companies concerned to the FSMA, to allow the latter to exercise its supervisory prerogatives vis-à-vis the companies that will benefit from the regime laid down in the draft Decree. In this respect, it should be noted that the companies benefiting from the derogatory regime must continue to comply, in the exercise of their activities in Belgium and under the supervision of the FSMA, with the rules on information and the rules of conduct laid down in Chapter 5 of Part 6 of the Law of 4 April 2014 on insurance (see commentary on Article 11). Article 4 The situation of companies in liquidation can be very diverse. Some may be managing only a few contracts, while others may have a larger volume of business at least at the date of the withdrawal of the United Kingdom from the European Union. Moreover, the supervisory regime of the United Kingdom and Gibraltar constitutes the transposition of the Solvency II Directive and therefore offers guarantees in principle very comparable to those of the Law of 13 March 2016. Finally, due to the liquidation of the activities, the volume of business in Belgium will gradually decrease. For these reasons, it is appropriate to rely on the principle of proportionality enshrined in Article 303, § 2, 3° of the Law of 13 March 2016 and to give the Bank a large degree of discretionary power with regard to the supervisory measures applicable to British companies liquidating their Belgian portfolio. The first paragraph of the draft article refers to Article 546 of the Law of 13 March 2016, which allows the Bank to take, vis-à-vis an insurance company in liquidation, all the measures necessary to safeguard the rights of policyholders and beneficiaries. These may be supervisory measures imposed on a company in a normal situation (Title IV of the Law of 13 March 2016) or binding measures imposed on a company in difficulty (Article 517 of the Law of 13 March 2016). The Bank is even authorised to terminate Belgian contracts (Article 546, fourth paragraph). The second paragraph constitutes an additional safeguard measure. According to Article 585, § 1, second paragraph, b) of the Law of 13 March 2016, branches of third country insurance companies must deposit in Belgium an amount of assets to guarantee the performance of their obligations in Belgium. As this provision is not

6 applicable to branches of companies governed by the law of a Member State of the European Economic Area, no branch of a company from the United Kingdom or Gibraltar has made such a deposit. Since the draft Decree does not require the establishment of branches either, these companies do not, in principle, have to make the deposit imposed by the aforementioned provision. However, the second paragraph of the draft article allows the Bank to require such a deposit as a guarantee for the performance of the obligations in Belgium of British companies. The amount will be specified by the Bank according to the volume of the company's activities and the risks incurred. However, it may not exceed the amount required from branches of third country companies, namely half of the absolute floor of the solvency capital requirement as laid down in Article 189, § 1, 4° of the Law of 13 March 2016. Finally, it goes without saying that if a company does not comply with the conditions listed in Article 2, § 2, it may lose the benefit from application of the regime provided for by the draft Decree. Article 5 Companies that benefit from the provisions of the draft Decree may submit an application file for authorisation of a Belgian branch. In accordance with Article 584 of the Law of 13 March 2016, no new contracts may be concluded in Belgium unless such authorisation has been granted by the Bank, but in the meantime, the regime laid down in this Decree will enable this company to manage its contracts concluded before the United Kingdom's withdrawal from the European Union. Consequently, the regime laid down in the draft Decree will end either when the Belgian branch is authorised or (if such authorisation is not granted) when the obligations arising from contracts ongoing at the time of the United Kingdom's withdrawal from the European Union have been fully settled. Article 6 This provision constitutes an exception to the regime provided for in draft Articles 1 and 2. This exception, which has existed in Belgian law since 1999, is laid down in Article 30ter of the Royal Decree of 22 February 1991 containing general regulations relating to the supervision of insurance companies. As provided for in Article 584, first paragraph of the Law of 13 March 2016, the obligation for insurance companies governed by the law of third countries to establish a branch in Belgium is "without prejudice to the provisions of the international treaties to which Belgium is a party". One of these treaties is the General Agreement on Trade in Services (GATS), annexed to the Agreement establishing the World Trade Organisation of 15 April 1994. According to this agreement, insurance companies from signatory States may pursue insurance business in the territory of other signatory States without being established in that territory, as far as this business concerns marine, aviation and transport insurance. Since British companies have already notified the Belgian supervisory

7 authorities of their intended business within the framework of the European directives, it is superfluous to repeat this procedure within the framework of the GATS. The draft article obviously only applies to the activities mentioned therein. If a British company pursues these activities and other activities that are not covered by the GATS agreement, the provisions of Articles 1 and 2 are applicable to it. Chapter III - Provisions applicable to insurance intermediaries, ancillary insurance intermediaries and reinsurance intermediaries Article 7 Article 7 specifies the scope ratione personae of Chapter III of this Decree, relating to insurance intermediaries, ancillary insurance intermediaries and reinsurance intermediaries. The scope of the Chapter comprises those insurance intermediaries, ancillary insurance intermediaries and reinsurance intermediaries governed by the law of the United Kingdom or Gibraltar that, before the date of the withdrawal of the United Kingdom from the European Union, were authorized to carry on, in Belgium, insurance or reinsurance distribution activities, either through a Belgian branch or under the freedom to provide services (Article 271 of the Law of 4 April 2014). Unless otherwise provided for in an agreement between the United Kingdom and the European Union on the matter, these intermediaries shall, on the date of the withdrawal of the United Kingdom from the European Union, no longer be allowed to benefit from the European passport. This means that, unless enrolled in the register of insurance intermediaries and insurance intermediaries on an ancillary basis, or in the register of reinsurance intermediaries, maintained by the FSMA in accordance with Article 259, § 1, paragraph 3, these intermediaries would have to cease all insurance or reinsurance distribution activities in Belgium, which will have a potentially detrimental impact on insurance creditors (policyholders and beneficiaries). Article 8 Article 8 describes the transitional regime set up for those insurance intermediaries, ancillary insurance intermediaries and reinsurance intermediaries governed by the law of the United Kingdom or Gibraltar that held a European passport for their activities in Belgium prior to the withdrawal of the United Kingdom from the European Union and that are authorised to carry on their activities for a maximum period of 18 months, on condition that such activities be restricted to the management and performance of the insurance or reinsurance contracts existing at the time of the withdrawal of the United Kingdom from the European Union. The continuation of insurance or reinsurance distribution activities relating to insurance or reinsurance contracts concluded prior to the date of the withdrawal of the United Kingdom from the European Union does not entitle the intermediaries concerned to renew or extend (tacitly or otherwise), in any way, existing insurance contracts or to create, extend, increase or re-establish a cover in such contracts.

8 That transitional regime represents a derogation from Article 259, § 1, paragraph 3 of the Law of 4 April 2014, which paragraph provides that no insurance intermediary or ancillary insurance intermediary, and no reinsurance intermediary, domiciled or established in a country outside the EEA may pursue insurance or reinsurance distribution in Belgium if such intermediary is not enrolled beforehand in, respectively, the register of insurance intermediaries and insurance intermediaries on an ancillary basis, or in the register of reinsurance intermediaries, maintained by the FSMA. In so far as necessary, it is should be specified that this transitional regime is only intended to apply to intermediaries governed by the law of the United Kingdom or Gibraltar that still have insurance or reinsurance distribution activities to be carried on in Belgium after the withdrawal of the United Kingdom from the European Union. It shall therefore not apply to those intermediaries that, on such date, shall have already transferred their distribution activities to other Belgian or foreign insurance distributors. That transitional regime shall apply for a period of 18 months from the date of Brexit. Article 8, § 1, paragraph 2 indicates that this is a maximum period of 18 months, as that period could be shorter for certain intermediaries, depending on the duration of their plan for the cessation of their activities, or should their enrolment in the FSMA register be approved before the expiry of that period. If intermediaries continue to carry on an insurance or reinsurance distribution activity at the end of that period and have not been enrolled in the FSMA register within the same period, they will have to cease all insurance or reinsurance distribution activities, even relating to existing contracts, failing which they would be carrying on illicit insurance or reinsurance distribution activities and would be subject to criminal and administrative sanctions. Those intermediaries that intend to benefit from the transitional regime described above shall notify the FSMA thereof at the latest within two months of the withdrawal of the United Kingdom from the European Union. The notification to the FSMA must be accompanied by a plan specifying how they intend to cease their activities before the expiry of the above-mentioned 18-month period. This plan should notably make it possible to verify to what extent the rights of policyholders, insureds and beneficiaries of insurance and reinsurance contracts have been taken into account and to what extent the preservation of these rights is ensured. In order to assess the extent to which the intermediaries concerned are still subject to supervision in their home country, the FSMA shall also be informed should they no longer be authorized to pursue insurance or reinsurance distribution activities under their national law or should they encounter financial difficulties such that they would no longer be able to comply with the legal and regulatory requirements applicable in their home country. This information should also enable the FSMA to assess the quality and implementation of the submitted plan for cessation of activities. Other data might also be useful to the FSMA in its assessment of the implementation of, and compliance with, the plan for cessation. To this end, the FSMA may request from the intermediaries any and all additional information relating to the insurance or reinsurance distribution activities they carry on in Belgium and, in particular, any data

9 relating to the insurance or reinsurance contracts in the management or performance of which they participate. The same data may also be requested by the FSMA from insurance companies which carry on direct distribution in Belgium, that is, which do not use the services of intermediaries, and which benefit from the derogatory regime set out in Article 2, § 2 of this Decree, allowing them to carry on the performance of existing contracts. Such data should also enable the FSMA to assess how these insurance companies are organising the cessation of their insurance distribution activities in Belgium. Article 9 Pursuant to Article 9, the FSMA may impose any and all measures to safeguard the rights of policyholders, insureds and beneficiaries of insurance and reinsurance contracts. Such measures notably include the possibility for the FSMA to order the intermediary to transfer some or all of its insurance or reinsurance distribution activities or to terminate contracts binding the intermediary to policyholders, insureds and beneficiaries of insurance and reinsurance contracts. These measures may be imposed on any intermediary as referred to in Article 7. They may thus also be imposed on intermediaries that did not notify the FSMA of their intention to benefit from the transitional regime and which, therefore, did not submit a plan for the cessation of their activities in Belgium. These measures could also be taken, for example, should the intermediary not comply with the cessation plan it has submitted or should such plan not deliver the expected results. Generally speaking, these measures may be taken by the FSMA whenever the rights of policyholders, insureds and beneficiaries of insurance and reinsurance contracts are jeopardized. The same measures may also be imposed by the FSMA on insurance companies which carry on direct distribution in Belgium, that is which do not use the services of intermediaries, and which benefit from the derogatory regime set out in Article 2, § 2 of this Decree, allowing them to carry on the performance of existing contracts. Article 10 Article 10 specifies that the transitional regime applies not only to insurance intermediaries, ancillary insurance intermediaries and reinsurance intermediaries that intend to cease their insurance or reinsurance distribution activities in Belgium, but also to those intermediaries that wish to carry on such activities and that have, meanwhile, requested enrolment in the register maintained by the FSMA, pursuant to Article 259, § 1, paragraph 3 of the Law of 4 April 2014. In such a case, the transitional regime shall apply throughout the processing of their registration application and until they are enrolled in the register. The transitional regime will cease to apply as soon as the intermediary is registered, as the intermediary will then be allowed to carry out its distribution activities in Belgium in accordance with the Law of 4 April 2014, without having to restrict such activities to insurance and reinsurance contracts concluded before the withdrawal of the United

10 Kingdom from the European Union. Should the FSMA refuse enrolment in the register, the transitional regime should continue to apply to the intermediary concerned until the expiry of the maximum period of 18 months set in Article 8, § 1, paragraph 2. Article 11 Article 11 specifies that, for the whole duration of the provisional authorization referred to in Article 8, the FSMA may exercise with regard to the intermediaries benefiting from that provisional authorization the powers of investigation described in Article 304 of the Law of 4 April 2014 and retains the power to take, with regard to such intermediaries, the measures and sanctions provided for in Articles 312, 314, 315 and 319 of the same Law should they fail to comply with the legal and regulatory provisions applicable to them, in particular the rules on information and the rules of conduct set out in Chapter 5 of Part 6 of the Law of 4 April 2014. Intermediaries benefitting from the transitional regime set out in Article 8 must indeed remain, while exercising their activities in Belgium, and under the supervision of the FSMA, in compliance with the rules on information and the rules of conduct set out in Chapter 5 of Part 6 of the Law of 4 April 2014 on insurance. In accordance with Article 278, § 1 of the Law of 4 April 2014, these rules apply to all insurance distributors that are governed by the law of third countries and that are authorised to provide in Belgium services relating to the distribution activities they carry out within the country. Such is the case for the intermediaries referred to in this Decree, that are legally authorized, be it provisionally, to provide distribution services in Belgium. The same reasoning applies to insurance companies. Those intermediaries are also required to remain compliant with the provisions protecting the general good referred to in Article 271, § 1, paragraph 2 of the Law of 4 April 2014. Article 11 also specifies that the FSMA may exercise, with regard to insurance companies benefitting from the derogatory regime set out in Article 2, § 2, the investigative powers described in Article 304 of the Law of 4 April 2014, and that the FSMA also retains the power to take, with regard to such companies, the measures and sanctions provided for in Articles 310, 314, 315 and 319 of the same Law should they fail to comply with the legal and regulatory provisions applicable to them, in particular with the rules on information and the rules of conduct set out in Chapter 5 of Part 6 of the Law of 4 April 2014. It is specified that, where these provisions refer to “the competent authorities of the home Member State”, these shall, for the application of Article 11, be read as “the competent authorities of the United Kingdom or Gibraltar”. Article 12 Article 259, § 2 of the Law of 4 April 2014 provides that insurance or reinsurance distributors established in Belgium, or that carry on their activities in Belgium without being established in the country, may not use the services of an insurance

11 intermediary, an ancillary insurance intermediary or a reinsurance intermediary that is not enrolled in the register of insurance intermediaries and ancillary insurance intermediaries, or in the register of reinsurance intermediaries, maintained by the FSMA, or whose registration has been suspended pursuant to Article 311, § 1, paragraph 2 of the Law of 4 April 2014. That article transposes Article 16 of the Insurance Distribution Directive into Belgian law. Article 12 specifies that, by way of derogation from Article 259, § 2 of the Law of 4 April 2014, insurance or reinsurance distributors that have an establishment in Belgium or carry out their activities in Belgium without being established in the country are permitted to use the services of intermediaries as referred to in Article 7 in so far as those intermediaries benefit from the transitional arrangements provided for in Article 8. The provision also applies to those insurance companies which benefit from the derogatory regime set out in Article 2, § 2 of this Decree, since they carry on insurance distribution activities in Belgium. Chapter IV - Final provisions Article 13 This Decree shall enter into force on the day of entry into force of Article 20, first paragraph of the Law of 3 April 2019 on the withdrawal of the United Kingdom from the European Union, in accordance with Article 46 of that Law. Article 14 This provision does not call for any particular comment.

12 Royal Decree Chapter I - General provisions Article 1 For the purposes of the application of this Decree and its implementing measures, the following definitions shall apply: 1° the Law of 4 April 2014: the Law of 4 April 2014 on insurance; 2° the law of 13 March 2016: the Law of 13 March 2016 on the legal status and supervision of insurance or reinsurance companies; 3° the United Kingdom: the United Kingdom of Great Britain and Northern Ireland; 4° the date of the withdrawal of the United Kingdom from the European Union: the date of expiry of the transitional period granted to the United Kingdom in the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community; 5° insurance distribution: the activity defined in Article 5, 46° of the Law of 4 April 2014; 6° reinsurance distribution: the activity defined in Article 5, 49° of the Law of 4 April 2014; 7° the Bank: the National Bank of Belgium, as referred to in Article 15, 82° of the Law of 13 March 2016; 8° the FSMA: the Financial Services and Markets Authority, as referred to in Article 44 of the Law of 2 August 2002 on the supervision of the financial sector and on financial services. Chapter II - Provisions applicable to insurance companies Article 2 § 1. This Article shall apply to insurance companies governed by the law of the United Kingdom or Gibraltar which, at the date of the withdrawal of the United Kingdom from the European Union, were authorised to pursue insurance business in Belgium in accordance with the provisions of Articles 550 to 555 or 556 to 561 of the Law of 13 March 2016.

13 § 2. By way of derogation from Article 584 of the Law of 13 March 2016, a company as referred to in § 1 which, on the date of the withdrawal of the United Kingdom from the European Union, ceases to underwrite new contracts and closes its activities in Belgium, shall not be authorised, as long as it has not obtained the authorisation required by law, to continue to service insurance contracts concluded before that date without applying for the authorisation referred to in that Article, unless it meets the following conditions: 1° it notifies the Bank of its intention to benefit from the regime laid down in this §; 2° it undertakes not to conclude any new insurance contracts in Belgium, with the exception of the conversion of capital into annuities or annuities into capital of life insurance contracts and the continuation on an individual basis of health insurance linked to professional activity as provided for in Article 208 of the Law of 4 April 2014; 3° it provides the Bank with proof that it is authorised under its national legislation to pursue the insurance activities to which the Belgian insurance contracts relate; 4° it provides the Bank with proof that it has fulfilled the legal and regulatory requirements applicable in the country of its registered office, that it is not subject to a recovery plan, a short-term financing plan or an equivalent measure imposed by the supervisory authorities of the United Kingdom or Gibraltar and that it is not subject to a reorganisation measure in the United Kingdom or Gibraltar; 5° it submits to the Bank a plan specifying how it intends to settle its obligations; 6° it undertakes to financially and operationally support its Belgian activities so that the insurance benefits are settled in the interest of the policyholders and beneficiaries; 7° it provides the Bank with information enabling it to assess its insurance obligations in Belgium; 8° it designates a representative in Belgium who meets the conditions of Article 593 of the Law of 13 March 2016. The companies referred to in § 1 shall regularly and at least once a year or after any significant change update the information referred to in the first paragraph. They shall also ensure that they inform policyholders and insurance beneficiaries as soon as possible that the continuity of the insurance benefits is assured and provide all relevant information in that respect. Article 3 The Bank shall communicate to the FSMA the plan referred to in Article 2, § 2, 4°.

14 Article 4 To ensure compliance with the provisions of Article 2, the Bank may take all the measures provided for in Articles 546 and 547 of the Law of 13 March 2016. In addition, the Bank may require the company to deposit with a financial intermediary in Belgium to make them unavailable, a sufficient amount of assets to guarantee the performance of its obligations in Belgium. This amount shall not exceed half of the absolute floor of the minimum capital requirement laid down in Article 189, § 1, 4° of the Law of 13 March 2016. In the event of a breach of the conditions set out in the second paragraph of this Article and in Article 2, § 2, the Bank may also withdraw the benefit of application of this provision. Article 5 Articles 2 to 4 shall also apply to the insurance companies referred to in Article 2, § 1 which have applied for authorisation from the Bank in accordance with Articles 584 et seq. of the Law of 13 March 2016, until such authorisation is granted to them. Article 6 Articles 2 to 4 shall not apply to insurance companies meeting the conditions referred to in Article 2, § 1 in so far as they cover risks situated in Belgium relating to: 1° maritime shipping, commercial aviation, space launching and freight (including satellites), such insurance covering any or all of the following: the goods being transported, the vehicle transporting the goods and any liability arising therefrom; 2° goods in international transit. The companies referred to in this article shall be authorised to cover in Belgium the risks referred to in the first paragraph either through a branch or without being established in the country. Chapter III - Provisions applicable to insurance intermediaries, ancillary insurance intermediaries and reinsurance intermediaries Article 7 This Chapter shall apply to insurance intermediaries, ancillary insurance intermediaries and reinsurance intermediaries governed by the law of the United Kingdom or by the law of Gibraltar that, on the date of the withdrawal of the United Kingdom from the European Union, were authorised to carry out insurance distribution activities in Belgium pursuant to Article 271 of the Law of 4 April 2014.

15 Article 8 § 1. By way of derogation from Article 259, § 1, third paragraph of the Law of 4 April 2014, the intermediaries referred to in Article 7 are authorised to carry on, in Belgium, insurance or reinsurance distribution activities relating to insurance or reinsurance contracts concluded before the date of withdrawal of the United Kingdom from the European Union, without being enrolled for that purpose in the register of insurance intermediaries and ancillary insurance intermediaries or in the register of reinsurance intermediaries maintained by the FSMA. The authorisation referred to in the first paragraph shall apply for a maximum period of 18 months from the date of the withdrawal of the United Kingdom from the European Union. § 2. The intermediaries referred to in § 1 that intend to carry on their activities in Belgium under the conditions laid down in this Article shall make themselves known to the FSMA at the latest within two months of the withdrawal of the United Kingdom from the European Union. They shall submit to the FSMA a plan specifying how they intend to cease their insurance or reinsurance distribution activities in Belgium before the expiry of the period laid down in § 1, second paragraph. They shall also provide the FSMA with proof that they are authorised under their national law to engage in insurance or reinsurance distribution activities and that they are complying with legal and regulatory requirements applicable in the country of their registered office. The intermediaries referred to in Article 7 shall update the information referred to in the above paragraphs in accordance with the arrangements and at the intervals stipulated by the FSMA. § 3. The intermediaries referred to in Article 7 that benefit from the provisional authorisation provided for in § 1 shall, upon the request of the FSMA, provide all data relating to their insurance or reinsurance distribution activities in Belgium, and notably all data relating to insurance or reinsurance contracts in the management or performance of which they participate. The insurance companies referred to in Article 2, § 1 to which the regime set out in Article 2, § 2 applies and which also pursue insurance distribution activities in Belgium without using the services of intermediaries shall, upon the request of the FSMA, provide all data relating to the insurance or reinsurance distribution activities they carry out in Belgium without using the services of intermediaries, and notably all data concerning the insurance or reinsurance contracts to which such distribution activities relate.

16 Article 9 The FSMA may impose on the intermediaries referred to in Article 7 and on the insurance companies referred to in Article 2, § 1 which benefit from the regime set out in Article 2, § 2 and which also pursue insurance distribution activities in Belgium without using the services of intermediaries, any and all measures to safeguard the rights of policyholders, insureds and beneficiaries of insurance and reinsurance contracts. Such measures shall notably include the possibility for the FSMA to order the intermediary to transfer some or all of its insurance or reinsurance distribution activities or to terminate contracts binding the intermediary to policyholders, insureds and beneficiaries of insurance and reinsurance contracts. Article 10 Articles 8 and 9 also apply to the intermediaries referred to in Article 7 that have requested enrolment in the register of insurance intermediaries and ancillary insurance intermediaries or in the register of reinsurance intermediaries, maintained by the FSMA, pursuant to Article 259, § 1, paragraph 3 of the Law of 4 April 2014, until their enrolment in such register. Article 11 Articles 304, 312, 314, 315 and 319 of the Law of 4 April 2014 apply to intermediaries referred to in Article 7 that benefit from the provisional authorisation provided for in Article 8, § 1. Articles 304, 310, 313, § 1, 314, 315 and 319 of the Law of 4 April 2014 apply to the insurance companies referred to in Article 2, § 1 which carry out insurance distribution activities in Belgium and benefit from the regime set out in Article 2, § 2. In these provisions, “home Member State” shall read “United Kingdom or Gibraltar” and “authorities of the home Member State” or “competent authorities of the home Member State” shall read “competent authorities of the United Kingdom or Gibraltar”. Article 12 By way of derogation from Article 259, § 2 of the Law of 4 April 2014, insurance or reinsurance distributors that have an establishment in Belgium or carry out their activities in Belgium without being established in the country are permitted to use the services of intermediaries as referred to in Article 7 in so far as those intermediaries benefit from the transitional arrangements provided for in Article 8.

17 Chapter IV - Final provisions Article 13 This Decree shall enter into force on the day of entry into force of Article 20, first paragraph of the Law of 3 April 2019 on the withdrawal of the United Kingdom from the European Union1 . Article 14 The Minister responsible for Economy and the Minister responsible for Justice shall be responsible, each in his or her own sphere, for the implementation of this Decree.

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1 Pursuant to Article 2 of the Royal Decree of 22 December 2020 setting the date of entry into force of various laws relating to the withdrawal of the United Kingdom from the European Union, this Decree shall enter into force on 1 January 2021.