Royal Decree of 27 April 2007 on the transposition of the European Directive concerning financial instrument markets

FEDERAL PUBLIC SERVICE FINANCES
F. 2007 — 2183 [C − 2007/03240]
27 APRIL 2007. — Royal Decree on the transposition of the European Directive concerning financial instrument markets REPORT TO THE KING

Sire,

Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments, amending Council Directives 85/611/EEC and 93/6/EEC and Directive 2000/12/EC of the European Parliament and of the Council and repealing Council Directive 93/22/EEC (hereinafter referred to as the MiFID Directive or Directive 2004/39) must be transposed into Belgian law. The same applies to Commission Directive 2006/73/EC of 10 August 2006 implementing Directive 2004/39/EC of the European Parliament and of the Council as regards organisational requirements and operating conditions for investment firms and the definition of certain terms for the purposes of the said Directive (hereinafter: the Implementing Directive).

Furthermore, it is necessary to make the necessary adjustments pursuant to Commission Regulation 1287/2006 of 10 August 2006 implementing Directive 2004/39/EC of the European Parliament and of the Council as regards the obligations of investment firms concerning record keeping, transaction reporting, market transparency, admission of financial instruments to trading and the definition of terms for the purposes of the said Directive (hereinafter the Regulation).

These European texts aim to further integrate the European financial services market as well as provide better protection for investors. They form part of the foundation of the Commission's Financial Services Action Plan and fall within the so-called Lisbon Strategy. Numerous economic studies have shown that the further integration of European capital markets makes a positive contribution to economic growth in the European Union. The MiFID rules form an integral part of this.

The MiFID Directive follows the scheme of the other Directives in the financial sector adopted in accordance with the recommendations of the Lamfalussy report (see here: Chamber, Parl. St. 2001-2002, 1842/001, p. 10-11). This means that the MiFID Directive is a framework Directive whose detailed rules are determined by the Commission via the comitology procedure. This allows for an efficient response to new developments in financial markets.

The adoption of the European texts was preceded by extensive public consultations of market participants and opinions from CESR (Committee of European Securities Regulators), the European network of securities market regulators (including the Commission for Banking, Finance and Insurance). The aforementioned opinions (and accompanying documents such as "feedback statements") are available on the CESR website and can often provide useful background for a better understanding of the new regulation.

The rules included in MiFID concern in particular the operating conditions under which conduct rules for financial intermediaries offering services related to financial instruments apply, the organisation of financial markets and the tasks of the competent market authorities.

The Directive replaces the investment services Directive 93/22/EEC, which had been transposed into Belgian law by the law of 6 April 1995 (and its implementing decrees). Entry into force is scheduled for 1 November 2007.

Perhaps the most important innovation of the MiFID Directive, at least in the field of securities intermediation, lies in the provisions for investor protection, the so-called conduct rules.

These rules cover a wide range and can be grouped as follows:
(a) information provision to (potential) clients; (b) client agreements and reporting; (c) duty of care (know your client), with a distinction depending on the services provided, for example portfolio management and investment advice, or merely execution/transmission of orders (execution-only); (d) organisational rules for order handling and execution at the most favourable conditions (best execution); (e) handling of conflicts of interest.

Investors are also expected to benefit from the increased transparency and competition provided for by MiFID, which can lead to better and cheaper services.

In the field of market regulation, the Directive aims to establish comprehensive regulation for the execution of transactions in financial instruments, regardless of the trading methods used for the execution of these transactions, to ensure that the execution of investors' transactions meets the highest standards and that the integrity and general efficiency of the financial system are maintained.

The decree submitted to you for signature aims to make the necessary adjustments and changes at the legislative level.

The legal basis for this decree lies in various delegation provisions to the King to transpose European legal standards and in that context to amend, supplement, replace, repeal or coordinate the applicable legal provisions, as well as to determine the applicable measures, administrative sanctions and penalties for non-compliance with the rules. Reference is made to:
— Article 51 of the law of 1 April 2007 on public takeover bids; — Article 146 of the law of 2 August 2002 concerning supervision of the financial sector and financial services; — Article 230, § 2, of the law of 20 July 2004 concerning certain forms of collective management of investment portfolios.

It should be emphasized that the decree also makes use of the authorization to the King to coordinate existing legal rules with the new provisions in implementation of the MiFID Directive (see Parl. St. 2006-2007, no. 2834/001, p. 37).

The granted delegation is accompanied by significant safeguards.

Thus, this decree will be submitted to Parliament for ratification. These safeguards are in line with the opinions of the legislation section of the Council of State (see in particular opinion 33.182/2 on the draft which became the law of 2 August 2002 and opinion 37.871/2 on amendment no. 1 to the draft law amending the law of 2 August 2002, which became the law of 14 February 2005). Such a delegation is, for similar reasons, also used in some other Member States such as France.

It should be specified that the European texts aim, as much as possible, to establish uniform rules in order to contribute to a better functioning integrated European market, and in particular to smoother cross-border financial services. This is evidenced by the use of a regulation as a legal instrument for one of the implementing measures. The framework Directive and the implementing Directive leave little margin. Thus, the implementing Directive aims to establish a harmonized set of organisational requirements and conditions for the exercise of business, so that Member States and competent authorities may not establish additional binding provisions during the transposition and application of this Directive, unless this is explicitly allowed in this implementing Directive. Only in exceptional cases may Member States impose additional requirements on providers of investment services. Moreover, such measures must remain limited to cases where concrete risks for the protection of the investor or for market integrity, including risks for the stability of the financial system, are not sufficiently covered by Community legislation, and must be strictly proportional.

It must be noted that MiFID is based on a principles-based approach. As explained by the European Commission in its "Background note" on the draft implementing Directive, this means that rather general principles with clear standards and objectives are determined for investment firms than detailed rules.

Investment firms show great differences in size, structure and nature of their business. A regulatory framework must be adapted to this diversity, but must contain certain fundamental obligations that apply to all companies. Regulated entities must comply with these fundamental requirements and must develop and establish measures that best fit the nature of their activities and their situation ("proportionality principle"). It should be pointed out that this principle works in two directions. The calibration of the rules provided for in many points in MiFID can mean for smaller companies that less developed systems and procedures are needed or sometimes no

SERVICE PUBLIC FEDERAL FINANCES
F. 2007 — 2183 [C − 2007/03240]
27 AVRIL 2007. — Arrêté royal visant à transposer la Directive européenne concernant les marchés d’instruments financiers RAPPORT AU ROI

Sire,

La Directive 2004/39/CE du Parlement européen et du Conseil du 21 avril 2004 concernant les marchés d’instruments financiers, modifiant les Directives 85/611/CEE et 93/6/CEE du Conseil et la Directive 2000/12/CE du Parlement européen et du Conseil et abrogeant la Directive 93/22/CEE du Conseil (ci-après « la MiFID » ou « la Directive 2004/39 ») doit être transposée en droit belge. Il en va de même pour la Directive 2006/73/CE de la Commission du 10 août 2006 portant mesures d’exécution de la Directive 2004/39/CE du Parlement européen et du Conseil en ce qui concerne les exigences organisationnelles et les conditions d’exercice applicables aux entreprises d’investissement et la définition de certains termes aux fins de ladite Directive (ci-après « la Directive d’exécution »).

Il convient en outre de procéder aux adaptations requises en vertu du règlement n° 1287/2006 de la Commission du 10 août 2006 portant mesures d’exécution de la Directive 2004/39/CE du Parlement européen et du Conseil en ce qui concerne les obligations des entreprises d’investissement en matière d’enregistrement, le compte rendu des transactions, la transparence du marché, l’admission des instruments financiers à la négociation et la définition de termes aux fins de ladite Directive (ci-après « le règlement »).

Ces textes européens visent à poursuivre l’intégration du marché européen des services financiers et à assurer une meilleure protection des investisseurs. Ils constituent l’un des fondements du Plan d’action pour les services financiers de la Commission et s’inscrivent dans le cadre de la stratégie dite de Lisbonne. De nombreuses études économiques ont démontré que l’intégration plus poussée des marchés européens de capitaux est tout bénéfice pour la croissance économique au sein de l’Union européenne. Les règles de la MiFID en font partie intégrante.

La MiFID suit le schéma des autres Directives applicables au secteur financier qui ont été adoptées selon les recommandations du rapport Lamfalussy (voir à ce sujet : Chambre, Doc. parl. 2001-2002, 1842/001, p. 10-11). La MiFID constitue ainsi une Directive cadre, dont les règles détaillées sont déterminées par la Commission via la procédure de comitologie. Cette façon de procéder permet de réagir efficacement aux nouvelles évolutions constatées sur les marchés financiers.

L’adoption des textes européens précités a été précédée de larges consultations publiques des participants du marché, ainsi que d’avis émis par le CESR (Committee of European Securities Regulators), le réseau européen des autorités de contrôle des marchés de valeurs mobilières (dont fait partie la Commission bancaire, financière et des assurances). Les avis précités (et les documents y afférents, tels que les « feedback statements »), peuvent être consultés sur le site web du CESR. Ils constituent souvent une source d’informations utile pour mieux comprendre la nouvelle réglementation.

Les règles énoncées dans la MiFID concernent notamment les conditions d’exercice de l’activité, parmi lesquelles figurent les règles de conduite à respecter par les intermédiaires financiers qui proposent des services portant sur des instruments financiers, l’organisation des marchés financiers et les tâches incombant aux autorités de marché compétentes en la matière.

La MiFID se substitue à la Directive 93/22/CEE concernant les services d’investissement, laquelle a été transposée en droit belge par la loi du 6 avril 1995 (et ses arrêtés d’exécution). Son entrée en vigueur est prévue pour le 1er novembre 2007.

L’innovation majeure de la MiFID réside sans doute, du moins en ce qui concerne l’intermédiation dans le domaine des valeurs mobilières, dans les dispositions visant à garantir la protection des investisseurs, à savoir les règles de conduite.

Ces règles couvrent de nombreux aspects, que l’on peut regrouper comme suit :
(a) l’information à fournir aux clients (potentiels) ; (b) les conventions à conclure avec les clients et les rapports à leur adresser ; (c) le devoir de diligence (« connaissez votre client »), une distinction étant opérée selon que les services fournis concernent par exemple la gestion de portefeuille et le conseil en investissement, ou portent uniquement sur l’exécution/la transmission d’ordres (execution-only);

MONITEUR BELGE — 31.05.2007 — BELGISCH STAATSBLAD 29283

(d) les règles organisationnelles à respecter pour assurer le traitement des ordres et leur exécution aux conditions les plus favorables (best execution) ; (e) le traitement des conflits d’intérêts.

Les investisseurs sont également censés tirer profit de la transparence et de la concurrence accrues visées par la MiFID, lesquelles devraient en effet permettre d’accroître la qualité de la prestation de services et d’en réduire le coût.

Dans le domaine de la régulation des marchés, la Directive vise à mettre en place une réglementation globale pour l’exécution des transactions portant sur des instruments financiers, quelles que soient les méthodes de négociation utilisées pour exécuter ces transactions, l’objectif étant de garantir que l’exécution des transactions d’investisseurs réponde aux normes les plus élevées et que l’intégrité et l’efficacité générale du système financier soient préservées.

L’arrêté soumis à Votre signature vise à opérer les adaptations et modifications nécessaires sur le plan législatif.

Il trouve son fondement légal dans différentes dispositions habilitant le Roi à transposer les normes de droit européen et à modifier, compléter, remplacer, abroger ou coordonner dans ce cadre les dispositions légales en vigueur, ainsi qu’à déterminer les mesures et les sanctions administratives et pénales applicables en cas de non-respect des règles. Il y a lieu de citer à cet égard :
— l’article 51 de la loi du 1er avril 2007 relative aux offres publiques d’acquisition ; — l’article 146 de la loi du 2 août 2002 relative à la surveillance du secteur financier et aux services financiers ; — l’article 230, § 2, de la loi du 20 juillet 2004 relative à certaines formes de gestion collective de portefeuilles d’investissement.

Il convient de souligner que le présent arrêté fait usage de l’habilitation accordée au Roi pour coordonner les dispositions légales existantes avec les dispositions nouvelles prises en exécution de la Directive MiFID (voir Doc. parl. 2006-2007, n° 2834/001, p. 37).

L’habilitation accordée au Roi est assortie de garanties importantes.
En effet, le présent arrêté sera soumis au Parlement pour ratification.
Ces garanties sont conformes aux avis rendus par la section de législation du Conseil d’Etat (voir notamment l’avis 33.182/2 sur l’avant-projet devenu la loi du 2 août 2002 et l’avis 37.871/2 sur l’amendement n° 1 du projet de loi modifiant la loi du 2 août 2002, qui est devenu la loi du 14 février 2005). Ce type d’habilitation est d’ailleurs pratiqué, pour des raisons comparables, dans d’autres Etats membres, tels que la France.

Il y a lieu de préciser que les textes européens visent, dans la mesure du possible, à établir des règles uniformes, dans le but de renforcer le fonctionnement efficace du marché européen intégré et, en particulier, de faciliter la prestation transfrontalière des services financiers. En témoigne le recours fait à un règlement comme instrument de droit pour instaurer l’une des mesures d’exécution. La Directive cadre et la Directive d’exécution ne laissent pas davantage une grande latitude. La Directive d’exécution vise en effet à mettre en place un cadre harmonisé d’exigences organisationnelles et de conditions d’exercice de l’activité, de sorte que les Etats membres et les autorités compétentes doivent se garder d’ajouter des règles contraignantes supplémentaires lors de la transposition et de la mise en œuvre des règles prévues par cette Directive d’exécution, sauf disposition expresse prévue à cet effet par la Directive elle-même. Les Etats membres ne peuvent que dans des circonstances exceptionnelles imposer aux prestataires de services d’investissement des obligations supplémentaires par rapport à celles prévues par les mesures d’exécution. De telles interventions doivent en outre rester rigoureusement proportionnées et se limiter aux cas dans lesquels la protection des investisseurs ou l’intégrité du marché sont menacées par des risques spécifiques - y compris ceux qui visent la stabilité du système financier - qui ne sont pas pleinement couverts par la législation communautaire.

Il y a lieu de relever que la MiFID procède d’une approche fondée sur des principes généraux (principles based approach). Comme la Commission européenne l’a expliqué dans sa note explicative (background note) sur le projet de Directive d’exécution, cela signifie que cette Directive énonce bien plus des principes généraux prévoyant des normes et objectifs clairs pour les entreprises d’investissement que des règles détaillées.

La taille des entreprises d’investissement est très variable, de même que leurs structures et la nature de leur activité. Le dispositif les encadrant doit donc être adapté à cette diversité tout en assurant le respect d’un certain nombre d’exigences fondamentales pertinentes pour toutes les entreprises. Les entités réglementées doivent se conformer à ces exigences fondamentales et doivent élaborer et adopter les mesures les plus appropriées à la nature de leur activité et à leur situation. C’est ce que l’on appelle le principe de proportionnalité. Il convient de souligner que ce principe fonctionne dans les deux sens. La possibilité d’ajuster les règles, prévue par la MiFID sur de nombreux points, peut signifier, pour les petites entreprises, que celles-ci pourront 29284 MONITEUR BELGE — 31.05.2007 — BELGISCH STAATSBLAD

obligation exists, but also that the requirements for undertakings with a wide range of services or with a complex business must be applied more strictly when assessing their organization.

A regulatory framework that brings too much uncertainty for investment firms could, however, undermine its effectiveness and predictability. Competent authorities are expected to publish interpretative guidelines on the implementation of the MiFID Implementing Directive, in particular to clarify the practical application of this Directive to certain undertakings and circumstances. Such non-binding guidelines could, inter alia, clarify how MiFID should be applied in light of certain market developments.

CESR also aims to achieve uniform application of the rules by the individual securities market supervisors forming part of the network. In this context, CESR may issue non-binding guidelines to ensure a convergent application of MiFID by competent authorities.

The financial sector itself can also contribute to the correct compliance with the rules by intermediaries through common codes and interpretations or initiatives where sound practices are agreed upon.

The main legislations adapted by this draft are: the Act of 2 August 2002 concerning the supervision of the financial sector and financial services, the Act of 20 July 2004 concerning certain forms of collective management of investment portfolios, the Act of 6 April 1995 concerning the status and supervision of investment firms, and the Act of 22 March 1993 on the status and supervision of credit institutions. The new legal provisions introduced by this decree also provide for the necessary delegations to the King to determine further rules for the transposition of the Directive (see on this method: Parl.St. 2006-2007, 2834/001, p. 39). Such a system of delegation of powers in such a complex and evolving subject matter as financial law will allow the aforementioned Lamfalussy approach to also be transposed into Belgian financial law. This method also allows European Directives to be transposed as quickly as possible in domains of great technicality where European rules leave little room for maneuver (see also: Chamber, Parl. St. 2001-2002, 1842/001, p. 43). In this regard, it can be mentioned that it is considered to group the technical implementing rules of MiFID as much as possible in one Royal Decree that implements the various legal delegations to the King, whether or not introduced or adapted on the basis of this decree.

The changes in the aforementioned laws are explained article by article below.

Following a suggestion from the Council of State, a transposition table has been attached to this Report to the King with, on the one hand, the provisions of the current draft and, on the other hand, the corresponding Community provisions. The intention is to attach a second table showing the transposition of the entire MiFID into Belgian law to the Report to the King accompanying the decree determining the further rules for the implementation of MiFID.

Very wide consideration was given to the opinion of the Council of State. In addition to the explanation provided in the article-by-article commentary in this regard, the following elements can be mentioned.

First of all, account was taken of the remark of the Council regarding the exercise of options offered by European rules. The following options included in the draft were omitted:
— the delegation to the King providing the possibility to impose client identity in transaction reports to the CBFA (Article 13(4) of the regulation); — the delegation to the King providing the possibility to impose the recording of telephone conversations with clients regarding stock orders (Article 51(4) of the Implementing Directive).

A number of other provisions of the draft submitted to the Council were omitted because they went beyond the mandatory Directive provisions. These concern in particular the provisions relating to the non-executive managers of market undertakings and investment firms (draft Articles 17 and 17bis of the Act of 2 August 2002 and draft Article 60 of the Act of 6 April 1995) and relating to the ratione personae scope of application of the conduct rules and the investor compensation scheme (draft Article 26 of the Act of 2 August 2002 and draft Article 65 of the Act of 6 April 1995).

se contenter de systèmes et procédures moins élaborés, voire qu’elles ne seront parfois pas soumises à certaines obligations, et, pour les entreprises proposant un large éventail de services ou exerçant une activité complexe, que les exigences prévues devront être appliquées plus strictement lors de l’évaluation de leur organisation.
Toutefois, un dispositif réglementaire qui induirait trop d’incertitudes pour les entreprises d’investissement risquerait de perdre en efficience et en prévisibilité. Les autorités compétentes doivent dès lors veiller à publier des recommandations d’interprétation sur les dispositions de la Directive d’exécution de la MiFID, en vue notamment de clarifier les modalités concrètes d’application des exigences de cette Directive à certains types d’entreprises ou de situations. Des recommandations non contraignantes de ce genre pourraient notamment préciser la façon dont les dispositions de la MiFID doivent s’appliquer, à la lumière des évolutions du marché. Le CESR vise lui aussi à instaurer une application uniforme des règles par les différentes autorités de contrôle des marchés de valeurs mobilières faisant partie du réseau. Il est susceptible, dans ce cadre, d’édicter des lignes directrices non contraignantes afin d’assurer une application convergente de la MiFID par les autorités compétentes. Le secteur financier lui-même peut par ailleurs contribuer à la bonne application des règles par les intermédiaires, en prévoyant des codes et des interprétations communs ou en prenant des initiatives visant à convenir des saines pratiques à respecter. Les principales législations adaptées par le présent projet sont la loi du 2 août 2002 relative à la surveillance du secteur financier et aux services financiers, la loi du 20 juillet 2004 relative à certaines formes de gestion collective de portefeuilles d’investissement, la loi du 6 avril 1995 relative au statut et au contrôle des entreprises d’investissement et la loi du 22 mars 1993 relative au statut et au contrôle des établissements de crédit. Les nouvelles dispositions légales introduites par le présent arrêté prévoient également les habilitations au Roi nécessaires pour préciser les règles d’exécution à adopter aux fins de la transposition de la Directive (voir également au sujet de ce procédé : Chambre, Doc. parl. 2006-2007, 2834/001, p. 39). Ce régime d’habilitations dans une matière aussi complexe et évolutive que le droit financier permet en fait de traduire l’approche Lamfalussy dans cette branche de la législation belge. Cette façon de procéder permet en outre de transposer les Directives européennes aussi rapidement que possible dans des domaines de grande technicité pour lesquels les règles européennes ne laissent que peu de latitude (voir également : Chambre, Doc. parl. 2001-2002, 1842/001, p. 43). Il y a lieu de noter à cet égard qu’il est envisagé de regrouper autant que possible les règles d’exécution techniques de la MiFID dans un seul arrêté royal portant exécution des diverses habilitations au Roi prévues dans les lois, que celles-ci soient introduites, voire adaptées, ou non en vertu du présent arrêté. Les modifications apportées aux lois précitées sont commentées ci-après article par article. Faisant suite à une suggestion du Conseil d’Etat, un tableau mettant en correspondance les
dispositions du présent projet et les dispositions communautaires qu’elles transposent, a été joint au présent rapport au Roi. Un deuxième tableau reproduisant la transposition de l’ensemble des dispositions de la MiFID en droit belge sera joint au rapport au Roi précédant l’arrêté qui détermine les règles et modalités d’exécution de la MiFID. Il a été tenu compte, dans une très large mesure, de l’avis du Conseil d’Etat. Outre les précisions fournies à cet égard dans le commentaire des articles, l’on peut mentionner les éléments repris ci-dessous. Il a en premier lieu été tenu compte de l’observation du Conseil d’Etat en ce qui concerne l’exercice des options offertes par les règles européennes. Ont ainsi été omises du projet les options suivantes :
— l’habilitation au Roi prévoyant la faculté d’imposer la mention de l’identité des clients dans les déclarations de transactions adressées à la CBFA (article 13, paragraphe 4, du règlement) ; — l’habilitation au Roi prévoyant la faculté d’imposer l’enregistrement des conversations téléphoniques passées avec des clients au sujet d’ordres de bourse (article 51, paragraphe 4, de la Directive d’exécution). D’autres dispositions de l’avant-projet soumis au Conseil d’Etat ont été omises parce qu’elles allaient au-delà des dispositions obligatoires de la Directive. Il s’agit en particulier des dispositions relatives aux dirigeants non exécutifs d’entreprises de marché et d’entreprises d’investissement (articles 17 et 17bis, en projet, de la loi du 2 août 2002 et article 60, en projet, de la loi du 6 avril 1995) et de celles relatives au champ d’application ratione personae des règles de conduite et du système d’indemnisation des investisseurs (article 26, en projet, de la loi du 2 août 2002 et article 65, en projet, de la loi du 6 avril 1995). MONITEUR BELGE — 31.05.2007 — BELGISCH STAATSBLAD 29285

HOOFDSTUK II. — Wijzigingen in de wet van 2 augustus 2002 Hoofdstuk II van dit besluit strekt er toe de vereiste wijzigingen door te voeren in de wet van 2 augustus 2002 teneinde deze in lijn te brengen met de MiFID-Richtlijn.
In de mate dat deze wet reeds in belangrijke mate had geanticipeerd om de MiFID-Richtlijn (zie hierover : Kamer, Parl. St. 2001-2002, 1842/001, pp. 38, 51, 54 en 63) gaat het vooral om verfijningen en om vervolledigingen, op punten waar de toenmalig beschikbare Europese ontwerpteksten nog ruimte lieten voor calibratie.
Bovendien wordt, waar nodig, rekening gehouden met de pas in 2006 aangenomen uitvoeringsmaatregelen. Het merendeel van de bepalingen van de uitvoeringsmaatregelen wordt echter omgezet via uitvoeringsbesluiten (hetzij koninklijk besluiten in uitvoering van diverse wettelijke bepalingen, hetzij reglementen van de CBFA).
Art. 2 tot 4. Deze bepalingen passen de in de wet van 2 augustus 2002 (hierna in de commentaar bij hoofdstuk II van het ontwerp : « de wet ») opgenomen definities aan in het licht van de MiFID-definities.
Van belang is vooral de nieuwe definitie van financiële instrumenten. De lijst van dergelijke instrumenten omvat voortaan ook afgeleide instrumenten op grondstoffen. Het gaat enkel om die grondstoffenderivaten die dusdanig worden verhandeld dat ze toezichtsvragen doen rijzen die vergelijkbaar zijn met die welke zich voordoen in verband met traditionele financiële instrumenten. De definitie van deze instrumenten wordt nader uitgewerkt in de verordening (zie de artikelen 38 en 39). Verwacht mag worden dat de in de wet van 6 april 1995 neergelegde vrijstellingen die gelden voor het handelen voor eigen rekening in, dan wel voor het handelen in of het verrichten van andere beleggingsdiensten met betrekking tot van grondstoffen afgeleide instrumenten ertoe zullen leiden dat een groot aantal commerciële producenten en verbruikers van energie en andere grondstoffen, met inbegrip van energieleveranciers, grondstoffenhandelaren en hun dochterondernemingen, van de werkingssfeer van de wet van 6 april 1995 zal worden uitgesloten en dat van deze partijen derhalve niet zal worden verlangd dat zij de in voornoemde verordening vastgelegde criteria toepassen om uit te maken of de contracten die zij verhandelen financiële instrumenten zijn. De definitie van grondstof in de wet en de verordening laat andere definities van deze term in de nationale en in de overige communautaire wetgeving onverlet. De criteria om na te gaan of een contract moet worden aangemerkt als een contract dat de kenmerken van andere afgeleide financiële instrumenten heeft en niet voor commerciële doeleinden is bestemd, zijn alleen bedoeld voor de wet van 2 augustus 2002 of voor wetgeving die hiernaar verwijst zoals de wet van 6 april 1995. Een derivatencontract moet worden aangemerkt als een contract dat op een grondstof of andere productiefactor betrekking heeft wanneer er een rechtstreeks verband bestaat tussen dit contract en de desbetreffende onderliggende grondstof of productiefactor. Een derivatencontract dat op de prijs van een grondstof betrekking heeft, dient derhalve te worden gezien als een derivatencontract dat op de grondstof in kwestie betrekking heeft, terwijl een derivatencontract dat op de vervoerkosten van een grondstof betrekking heeft, niet mag worden gezien als een derivatencontract dat op de grondstof betrekking heeft. Een derivaat dat betrekking heeft op een van grondstoffen afgeleid instrument, zoals een optie op een future voor grondstoffen (een derivaat dat betrekking heeft op een derivaat), is een indirecte belegging in grondstoffen en dient derhalve nog steeds als een van grondstoffen afgeleid instrument in de zin van de wet te worden beschouwd. Onder het begrip "grondstof" vallen geen diensten of andere zaken die geen goederen zijn, zoals valuta’s of rechten op onroerend goed, of die geheel van immateriële aard zijn. Er wordt aan herinnerd dat in België in 2006 een electriciteitsbeurs is opgestart voor de verhandeling van spot-electriciteitscontracten. In dit
geval wordt elektriciteit louter als commodity verhandeld. Indien dergelijke beurs haar werkzaamheden zou uitbreiden tot onder deze wet vallende financiële instrumenten, zal zij onder de financieelrechtelijke wetgeving vallen (zie ook het Verslag aan de Koning bij het Koninklijk Besluit van 20 oktober 2005 met betrekking tot de oprichting en de organisatie van een Belgische markt voor de uitwisseling van energieblokken). In de huidige versie van de wet van 2 augustus 2002 is een machtiging aan de Koning opgenomen om de door de wet zelf bepaalde lijst van financiële instrumenten uit te breiden met andere

CHAPITRE II. — Modifications de la loi du 2 août 2002 Le chapitre II du présent arrêté vise à opérer dans la loi du 2 août 2002 les modifications nécessaires pour assurer sa mise en conformité avec la MiFID.
Dans la mesure où cette loi a été élaborée en anticipant dans une large mesure la transposition de la MiFID (voir à ce sujet : Chambre, Doc. parl. 2001-2002, 1842/001, p. 38, 51, 54 et 63), les modifications apportées visent principalement à affiner ou à compléter la loi sur des points pour lesquels les projets de texte européens disponibles à l’époque laissaient encore place à un ajustement. Le présent arrêté tient par ailleurs compte, lorsque cela s’avère nécessaire, des mesures d’exécution qui n’ont été adoptées qu’en 2006. Il convient toutefois de noter que la plupart des dispositions contenues dans ces mesures d’exécution seront transposées par des arrêtés d’exécution (soit des arrêtés royaux pris en exécution de diverses dispositions légales, soit des règlements de la CBFA). Art. 2 à 4. Ces dispositions adaptent les définitions figurant dans la loi du 2 août 2002 (dénommée ci-après, dans le commentaire du chapitre II du projet, « la loi ») à la lumière des définitions énoncées dans la MiFID. L’on relèvera surtout la nouvelle définition d’ « instruments financiers ». La liste de ces instruments inclut désormais certains contrats dérivés sur matières premières. Il s’agit uniquement des contrats dérivés sur matières premières dont la négociation appelle une approche de contrôle comparable à celle applicable aux instruments financiers classiques. La définition de ces instruments est reprise de manière plus détaillée dans le règlement (voir les articles 38 et 39). Les dérogations prévues par la loi du 6 avril 1995 en ce qui concerne la négociation pour compte propre ou la négociation et la fourniture d’autres services d’investissement relatifs aux instruments dérivés sur matières premières auront pour effet d’exclure un grand nombre de producteurs et de consommateurs commerciaux d’énergie et d’autres matières premières, y compris les fournisseurs d’énergie, les négociants en matières premières et leurs filiales, du champ d’application de la loi du 6 avril 1995 et, partant, de les soustraire à l’obligation d’évaluer, en appliquant les critères prévus par le règlement précité, si les contrats qu’ils négocient sont des instruments financiers. La définition de « matières premières » qui figure dans la loi et le règlement n’affecte pas les autres définitions données de ce terme dans la législation nationale et dans le reste de la législation communautaire. Les critères servant à déterminer si un contrat doit être considéré comme possédant les caractéristiques d’autres instruments financiers dérivés et comme n’étant pas destiné à des fins commerciales, n’ont vocation à être utilisés que pour l’application de la loi du 2 août 2002 ou de la législation qui y fait référence, comme la loi du 6 avril 1995. Un contrat dérivé doit être considéré comme se rapportant à une matière première ou à un autre facteur de production lorsqu’il existe un lien direct entre ce contrat et la matière première ou le facteur de production sous-jacent. Un contrat dérivé sur le
prix d’une matière première doit par conséquent être considéré comme portant sur ladite matière première, tandis qu’un contrat dérivé sur les coûts de transport d’une matière première ne peut pas être considéré comme portant sur cette matière première. Un instrument dérivé relatif à un instrument dérivé sur matières premières, comme une option sur un contrat à terme sur matières premières (dérivé de dérivé), constitue un investissement indirect dans les matières premières en question et doit donc toujours être considéré comme un instrument dérivé sur matières premières au sens de la loi. La notion de « matières premières » n’englobe pas les services ou autres éléments qui ne sont pas des biens, tels que les monnaies ou les droits immobiliers, ou qui sont totalement incorporels. L’on rappellera qu’en Belgique, une bourse d’électricité a entamé en 2006 des activités axées sur la négociation de contrats d’électricité au comptant. Dans pareil cas, l’électricité est négociée simplement en tant que commodity. Si une bourse de ce type venait à étendre ses activités à des instruments financiers visés par la loi, elle tomberait dans le champ d’application de la législation financière (voir également le rapport au Roi précédant l’arrêté royal du 20 octobre 2005 relatif à la création et à l’organisation d’un marché belge d’échange de blocs d’énergie). La loi du 2 août 2002 prévoit, dans sa version actuelle, une habilitation au Roi Lui permettant d’étendre la liste des instruments financiers, prévue par la loi même, à d’autres catégories de valeurs (voir 29286 MONITEUR BELGE — 31.05.2007 — BELGISCH STAATSBLAD

categories of securities (see Article 2, 1°, k)). This last provision is not replaced by the present decree and remains unchanged. The observation formulated by the Council of State in this regard has therefore become moot. It can be noted that this authorization may be useful to determine a broader scope of application for certain matters (such as, for example, conduct rules on the primary market) than that of the financial instruments covered by MiFID.

Also new is the definition of a "multilateral trading facility" ("multilateral trading facility", hereinafter: MTF). MiFID indeed takes into account the development, parallel to regulated markets, of a new generation of organized trading systems that must be subject to obligations aimed at ensuring the proper and orderly functioning of financial markets.

The operation of an MTF is defined by MiFID as an investment service, so the status of an investment firm or credit institution is required for this. The Directive also allows operators of a regulated market to operate an MTF, provided verification that they comply with the Directive requirements (see also the commentary on Article 34).

The definitions of regulated market and MTF are closely aligned to clearly show that they cover the same organized trading functions. Bilateral systems in which an investment firm executes transaction orders for its own account and does not act as a risk-free intermediary between buyer and seller are not covered. As explained in recital 6 of MiFID, the term "system" encompasses all markets consisting of a set of rules and a trading platform, as well as markets that operate solely on the basis of a set of rules. Regulated markets and MTFs are not required to operate a "technical" system for order matching. A market that consists solely of a set of rules regarding aspects related to membership, admission of instruments to trading, trading between members, transaction reporting and, where applicable, transparency obligations, is a regulated market or an MTF within the meaning of this Directive, and transactions carried out according to these rules are deemed to have been carried out according to the systems of a regulated market or an MTF.

This clarification is important for the Belgian secondary off-exchange market in government securities, which is currently recognized as a regulated market.

The term "buying and selling intentions" must be understood in a broad sense and includes orders, prices, and indications of interest. The requirement that intentions be brought together in the system according to non-discretionary rules established by the operator of the system means that these intentions must be brought together according to the rules, protocols, or internal operating procedures (including IT procedures) of the system. The expression "non-discretionary rules" means that these rules must not leave the investment firm operating an MTF any possibility to influence the interaction between the intentions. The definitions stipulate that intentions must be brought together in such a way that a contract results, which means that execution must take place according to the rules, protocols, or internal operating procedures of the system.

Under MiFID, investment firms and credit institutions may also "internalize" client orders, that is, execute them internally outside a regulated market or an MTF. For these intermediaries who internalize client orders concerning liquid shares as a counterparty, the Directive imposes transparency obligations. Hence, it is important to precisely define the concept of "systematic internalizer" (see Article 2, first paragraph, 8°). The criteria to determine whether an investment firm qualifies as an internalizer are further specified by Article 21 of the regulation. One of the criteria determined in the regulation is that the activity must play a substantial commercial role for the investment firm. An activity should be considered as having a substantial commercial role for an investment firm if the activity is a significant source of income or a significant source of costs. In assessing what should be considered significant in this regard, account must in any case be taken of the extent to which the activity is exercised or organized separately, the monetary value of the activity, and its significance in comparison to both the total business activity of the firm and its total activity in the market for the share on which it operates. An activity can constitute a significant source of income for a firm in cases where only one or two of the aforementioned criteria apply.

Not all transactions carried out by members or participants of the regulated market or the MTF need to be considered as transactions carried out within the systems of the regulated market or the MTF. Transactions carried out bilaterally by members or participants that do not meet the requirements imposed on a regulated market or an MTF under the Directive must be considered as transactions carried out outside a regulated market or an MTF for the purpose of the definition of internalizer. In that case, the transparency obligations for internalizers apply.

An investment firm intending to systematically internalize must possess a double authorization, namely for the execution of orders and for trading for own account.

The Directive provides for a different level of protection depending on whether it concerns professional clients or non-professional clients. Professional counterparties will enjoy less protection, given their knowledge and experience in investment. The definition of these categories will be made by implementing decree. This will also elaborate the classification procedure to be followed and specify the information to be provided to investors. Since no comparable regulation to the Directive regarding client classification existed in Belgium previously, no claim can be made for a transitional regime ("grandfathering"). For this reason, the transitional provisions included in MiFID (Article 71, paragraph 6 and Annex II, point II.2, third paragraph) are not pertinent in Belgium.

Art. 6 to 8. The framework for regulated markets included in the law is completed in light of MiFID.

The authorization to operate a regulated market covers all activities directly related to the display, processing, execution, confirmation, and notification of orders from the moment these orders are received by the regulated market until the moment they are transmitted for settlement, as well as activities related to the admission of financial instruments to trading. Also included are transactions carried out with the involvement of market makers designated by the regulated market according to the systems of that market and in accordance with the rules of those systems.

Art. 9. This provision reformulates the rules in the law regarding the Rule Book of regulated markets. Paragraph 3 of the new Article 6 of the law now specifies the conditions that market members must meet.

In accordance with the Directive, § 8 introduces an obligation for the market operator of the regulated markets to report to the CBFA any potential market abuse practices discovered by the market operator. This reporting obligation is an extension of the "monitoring" that regulated markets perform on transactions and does not detract from the statutory supervisory duties of the CBFA.

Art. 10. A new Article 6bis of the law implements the Directive provisions regarding the conditions that financial instruments must meet to be admitted to a regulated market. Account must also be taken of the detailed rules determined in this regard in Articles 35 to 37 of the regulation. These last provisions specify the admission conditions for securities (in particular warrants), collective investment undertakings, and derivative instruments. The regulated market is free to impose stricter requirements than those imposed by this law on issuers of securities or instruments it intends to admit to trading.

For the application of the provisions of the regulation concerning the admission to trading on a regulated market of warrants, in the case of a security within the meaning of Directive 2003/71/EC of the European Parliament and of the Council of 4 November 2003 concerning the prospectus to be published when securities are offered to the public or admitted to trading and amending Directive 2001/34/EC, it may be assumed that sufficient information is available to the public to allow the value of the relevant financial instrument to be determined.

The admission to trading on a regulated market of units in undertakings for collective investment in transferable securities (UCITS) must not make it possible to circumvent the relevant provisions of Council Directive 85/611/EEC of 20 December 1985 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS), and in particular Articles 44 to 48 of that Directive.

Under Belgian regulations, the admission of a unit in a collective investment scheme to trading on a regulated market constitutes a public offer, so that the rules provided in this regard concerning the products offered are applicable. It is therefore not provided for to exempt collective investment schemes from authorization requirements as a prior condition for admission to trading on a regulated market, as Article 36(2) of the Regulation leaves to Member States.

The provisions of the MiFID Directive relating to the admission of instruments to trading in accordance with the rules applied by a regulated market are without prejudice to the application of Directive 2001/34/EC of the European Parliament and of the Council of 28 May 2001 concerning the admission of securities to official stock exchange listing and information to be published on those securities. The provisions in question are maintained in the law, and more particularly in Article 7.

Pursuant to Article 40 of the MiFID, § 3 provides that regulated markets must put in place effective arrangements enabling them to verify that listed issuers comply with the obligations regarding financial information incumbent upon them under Community law. This provision falls within the framework of the contractual relationship between the market and the issuer and obviously does not prejudice the missions of the CBFA aimed at controlling compliance with rules regarding prospectuses or continuous financial information.

Art. 11. This provision complements Article 7 of the law, in light of Article 40(5) and Article 41(1) of the MiFID. Care has been taken to retain the provisions transposing the aforementioned Directive 2001/34/EC regarding admission to official listing.

Art. 12. This provision completes the legal basis necessary to determine by Royal Decree the rules relating to the reporting to the CBFA of transactions involving financial instruments and those relating to market transparency vis-à-vis the public. These two matters are also governed, to a large extent, by the Regulation. They also constitute the basis for the transposition of the obligation to publish limit orders (Article 22(2) of the MiFID).

Art. 13. This provision removes the option that the law left to the King to impose on intermediaries the obligation to execute their transactions involving listed financial instruments by resorting to a regulated market. This centralization obligation is contrary to the provisions of the MiFID. This is why Article 37 of the Law of 6 April 1995 is also repealed (see Article 33 of this draft).

Art. 15 and 16. These modifications are necessary to ensure the framework for MTFs from the perspective of ensuring the proper functioning of markets.

They will be particularly useful for proceeding with the transposition of Articles 14, 26, 31, 32 and 62(3) of the MiFID, which concern MTFs. By virtue of the authorization to the King provided by Article 51 of the aforementioned Law of 1 April 2007, the new rules are coordinated, by this Decree, with the existing rules (see also, to this effect, the preparatory works of the Law of 1 April 2007: Parl. Doc. 2006-2007, No. 2834/001, p. 37).

Art. 17 to 19. These provisions complete the status of market operators to take into account the MiFID provisions. Account has been taken of the observations formulated in this regard by the Council of State.

Art. 20. This provision inserts into the law an Article 23bis which groups together the MiFID provisions relating to clearing and settlement.

Art. 21. This article replaces Article 26 of the law. The latter now specifies the scope of application of the conduct rules which are defined, in implementation of the MiFID, in Articles 27, 28 and 28bis of the law. For Belgian investment firms and credit institutions, the activities carried out by these institutions within the framework of the free provision of services are, in accordance with the MiFID, also covered. The country of establishment of the branches opened by these institutions in other Member States regulates, in this domain, however, in accordance with Article 32(7) of the MiFID, the services provided by these branches on its territory.

Taking into account the observation of the Council of State, the authorization to the King to extend the ratione personae scope of application was deleted. However, contrary to what the Council of State notes, there is a basis in Article 14(3) of the MiFID for the regulation of draft Article 26, fourth paragraph, of the Law of 2 August 2002 that exempts transactions on MTFs between members of MTFs from the application of conduct rules.

Art. 22. This provision faithfully transposes Articles 19, 20 and 22 of the MiFID. The conduct rules included therein may, on the basis of § 11, be further developed in order to transpose the more detailed provisions contained in the implementing Directive. These provisions will make an appropriate distinction depending on whether the investor is a professional investor or not.

These rules concern business conduct conditions for the protection of the investor. They cover the following aspects:
— publicity and information provision to (potential) clients; — client agreements and reporting; — order handling; — duty of diligence (know your client), with a distinction depending on the services provided, for example, whether they concern portfolio management and investment advice, or merely execution/transmission of orders (execution-only). For clarification on the concept of investment advice, reference is made to the commentary on Article 37.

§ 7 transposes Article 41 of the implementing Directive regarding the client agreement. Given the margin left by the Directive to regulate the content of the contract (see recital 41 of the implementing Directive), this provision authorizes the King to determine further rules regarding the content of agreements to be concluded with clients. The intention is in particular to determine the contract content for portfolio management services for non-professional clients, in line with current rules as specified in the Royal Decree of 5 August 1991 on portfolio management and investment advice.

The aforementioned rules fall under the supervision of the CBFA. It may use for this purpose the supervisory instruments and sanctions provided for in the Law of 2 August 2002, as well as the remedial measures provided for in the prudential regulation (see in this regard the commentary on Article 71).

Art. 23. This provision aims to implement Article 21 of the MiFID. This provision specifies the organizational rules for execution on the best terms (best execution).

It can be noted that work is ongoing regarding the scope of these rules at the CESR level (see the consultation document CESR/07-050b).

Art. 24. This provision aims to transpose Article 25(1) of the MiFID.

Furthermore, this provision reiterates Article 38(4) of the Law of 6 April 1995.

Art. 25. This concerns a mere adjustment of internal references in the law.

Art. 26. Reference is made to the commentary on Articles 56 to 58.

Art. 27. This provision designates the CBFA as the competent authority for the application of the Regulation, so that it may use the supervisory and enforcement powers provided for in the law for this purpose.

Art. 28 to 31. Articles 28 to 31 provide for the transposition of Articles 56 to 59 of Directive 2004/39/EC which deal with cooperation between competent authorities.

In order to group together the provisions concerning international cooperation, Article 28 repeals Article 43bis of the Law of 2 August 2002 and the elements of this repealed provision are re-incorporated into Section 6 of Chapter III of the Law of 2 August 2002.

Article 29 of the draft amends Article 77 of the Law of 2 August 2002 on two points. First, the current paragraph 2 is supplemented with a provision empowering the CBFA, within the framework of agreements concluded with other competent authorities and subject to conditions it determines, to grant an exemption from compliance with legal or regulatory provisions regarding matters governed by Directives 2004/39/EC and 2006/48/EC. This provision is necessary to give useful effect to the duty of cooperation between competent authorities referred to in Article 56 of MiFID. It falls within the framework of the efficient exercise by competent authorities of their supervisory powers regarding internationally active investment firms, as envisioned by both the European institutions and CESR. To this end, the European Commission, within the 'European Securities Commission', recommended that Member States provide the necessary legal authorizations to promote delegations between supervisors by, inter alia, concluding appropriate agreements on applicable law.

As a second amendment, paragraph 4 is added to transpose Article 56, paragraph 2 of Directive 2004/39/EC. For the interpretation of this provision, account must be taken of the clarification of the concept of 'significant holding' provided by Article 16 of Regulation 1287/2006. In accordance with the advice of the Council of State, a reference to this provision of the regulation was included in the text of paragraph 4.

Point 3° of the same paragraph transposes Article 58, paragraph 1, second paragraph and paragraph 2 of Directive 2004/39/EC. Point 4° of the same paragraph transposes Article 56, paragraph 4 of Directive 2004/39/EC and incorporates elements of the former Article 43bis of the Law of 2 August 2002 on market abuse. Paragraph 2 transposes Article 59 of Directive 2004/39/EC and also incorporates elements of the former Article 43bis of the Law of 2 August 2002 on market abuse.

Paragraph 4 transposes Articles 58, paragraph 2 of Directive 2004/39/EC and 45 of Directive 2006/48/EC.

Article 31 introduces Article 77ter into the Law of 2 August 2002, transposing Article 56, paragraph 1, third paragraph of Directive 2004/39/EC.

CHAPTER III. — Amendments to the Law of 6 April 1995 on the status of and supervision over investment firms, intermediaries and investment advisors

Art. 32. This article adapts the title of the Law of 6 April 1995. Since this draft abolishes the status of investment advisory companies, the title is simplified and limited to the status of investment firms.

Art. 33. Since conduct rules are now determined by and pursuant to Articles 26 to 28bis of the Law of 2 August 2002, Articles 36 to 39 of the Law of 6 April 1995 are repealed.

Art. 34. This article amends Article 44 of the Law of 6 April 1995 on several points. In the wake of the case law of the Court of Cassation regarding the current legal regime (Cass., 4 March 2003), this provision first confirms that the exercise of an investment firm business includes not only the provision of investment services but also their offering.

In accordance with the MiFID Directive, a distinction is made between, on the one hand, investment services provided to third parties (both professional and non-professional clients) and, on the other hand, investment activities (such as trading for own account in principle) where no service is provided to third parties. The law, like the Directive, requires in principle a license as an investment firm for both.

Subsequently, the draft provision clarifies the regime for Multilateral Trading Facilities (MTFs) operated by a market operator of a regulated market. Under the Directive, operating an MTF constitutes an investment service. In derogation from the rule that only investment firms may provide investment services, the Directive explicitly provides that an MTF may be operated by both an investment firm and a market operator of a regulated market. The market operator, however, is not required to undergo a full second authorization procedure. The market operator already possesses a license as a market operator of regulated markets (see Chapter I, Section 1 of the Law of 2 August 2002). In such cases, the CBFA must verify whether the market operator meets the legal authorization conditions applicable to investment firms. The CBFA may impose remedial measures when the market operator fails to comply with the rules applicable to the MTF it operates.

To avoid overlap resulting from the cumulative application to market operators of the rules for market operators and those for investment firms, regarding the MTFs they operate, existing supervision of the market operator under the Law of 2 August 2002 will be taken into account where applicable, so that in principle, the license as a market operator will suffice to operate an MTF.

The regulation contained in this provision must be read together with the provisions applicable to all MTFs established pursuant to Article 15 of the Law of 2 August 2002.

Art. 35. This article replaces Article 45 of the Law. It expands, in accordance with the Directive, the number of cases in which the law does not apply. The regulation on investment services is intended for companies whose normal profession or business consists in the professional provision of investment services and/or investment activities. Consequently, persons who have another professional activity should in principle be excluded from the scope of the law.

Compared to the exclusion cases under Directive 93/22/EEC of 10 May 1993 (the 'ISD'), the MiFID Directive 2004/39/EC defines or specifies several additional situations where the status of investment firm should not apply. These cases are included in the new Article 45 draft. These include persons who only perform transactions for their own account, unless they are market makers or systematic internalizers.

Furthermore, there are several specific exclusion cases in the sector of commodity derivative intermediaries.

As explained below, investment advice on financial instruments now qualifies as an investment service requiring the status of an investment firm. On this point, the draft introduces two important exceptions. First, the draft incorporates the exception imposed by the Directive for persons who, during their normal professional activities falling outside the scope of this law, provide investment advice, provided they are not specifically paid for these services.

A second exception concerns investment advisory services that brokers in banking and investment services may provide. The draft uses an optional exemption possibility offered by Article 3 of the Directive (see also the explanation of Article 120 of the draft). Pursuant to this Directive provision, brokers in banking and investment services subject to the Law of 22 March 2006 are excluded from the scope of the investment firm status for all investment services authorized to them under the Law of 22 March 2006.

To be eligible for these exemptions, the persons concerned must continuously meet the conditions set for those exemptions. Specifically, those who provide investment services or activities and qualify for an exemption from the application of this Directive because those services or activities, considered on a group basis, constitute a secondary activity of their main business, will no longer fall under the exemption related to secondary activities when the provision of those services or activities no longer constitutes a secondary activity of their main business.

Credit institutions granted a license in accordance with the Law of 22 March 1993 do not need another license to provide investment services or activities. When a credit institution decides to provide investment services or activities, the CBFA must ensure, before the credit institution commences these activities, that the credit institution complies with the relevant organizational provisions of the banking law and the Law of 6 April 1995, as well as the conduct rules on investment services provided in Articles 27, 28, and 28bis of the Law of 2 August 2002.

Art. 36. This article adapts the reference in Article 45bis of the Law. This provision remains the legal basis for the status of derivatives specialists. Their activity now also covers 'cash' markets insofar as necessary to cover their positions on derivatives markets.

Art. 37. This article adapts Article 46 of the Law, which contains all definitions.

It is important to emphasize the definitions of the new investment services and activities on the one hand, and ancillary services on the other.

New investment services are:
— investment advice (whereas investment advice was only an ancillary service under the ISD Directive, the MiFID Directive now requires a license for this service throughout the European Union, given the growing dependence of investors on personal recommendations); — the operation of an MTF.

The new ancillary services are:
— research in the field of investments (“research”) and financial analysis or other forms of general recommendations relating to transactions in financial instruments; — the investment services and activities as well as ancillary services relating to the underlying value of certain commodity derivatives (only insofar as provided in conjunction with these derivatives, in particular to ensure the settlement of transactions in those derivatives).

From now on, the service consisting of bringing investors together, thereby enabling a transaction in a financial instrument to take place between these investors, is no longer listed separately in the law. In line with the Directive and Recital 20, it is specified that this service is part of the service “receiving and transmitting orders”. Introducing clients to an investment firm or a credit institution does not fall under this.

Articles 46, 9° and 10° define what is meant by investment advice, in line with Article 4, 1., 4) of Directive 2004/39 and Article 52 of Directive 2006/73.

It is worth emphasizing that investment advice now has a broad meaning. Investment advice shall be understood as:
— either when a recommendation has been presented as suitable for the person concerned, that is to say when it is reasonable to assume, given all relevant circumstances, that the recommendation is suitable for the client; — or when it is based on an assessment of their personal characteristics.

Investment advice can take various forms: it can be an ad hoc personalized recommendation, where advice is not necessarily given on the client’s entire portfolio or investment strategy. It can also be a more lasting advisory relationship. The licensing and protection regime applies without exception to all financial instruments and to services provided to professional and non-professional clients.

Advice on financial instruments given in a newspaper, daily, magazine or other publication for the general public (including the internet) or in a television or radio broadcast may not be regarded as a personalized recommendation.

Generic advice on a type of financial instrument is not investment advice because only advice on specific financial instruments is covered. However, if an investment firm provides a client with general advice on a type of financial instrument that it presents as suitable for the client concerned or based on an assessment of their personal circumstances, and this advice is in fact not suitable for the client or not based on an assessment of their circumstances, then depending on the circumstances of the specific case, it may be assumed that it acts in violation of Article 27 §§ 1 or 2 of the Law of 2 August 2002. In particular, a company that provides such advice will usually act in violation of Article 27, § 1, which stipulates that it must act loyally, fairly and professionally in the interests of its clients. Such advice may also be in violation of Article 27, § 2, which stipulates that information provided to clients must be correct, clear and not misleading.

Preparations by an investment firm for the provision of an investment service or investment activity must be regarded as an integral part of that service or activity. This also includes the provision by an investment firm of general advice to clients or potential clients before or during the provision of investment advice or the provision of another investment service or activity.

A general recommendation (i.e., a recommendation intended for distribution channels or for the public) relating to a transaction in a financial instrument or to a type of financial instrument constitutes an ancillary service within the meaning of Article 46, 2°, 5) of the Law of 6 April 1995, which has the consequence that the protection offered by the law applies to such a recommendation.

With regard to the definition of financial instruments, reference is made to the Law of 2 August 2002. This definition is important insofar as the list of instruments qualified as financial instruments has been extended to derivative instruments on commodities (“commodity derivatives”) and to certain new instruments such as “credit derivatives” and derivative contracts relating to climate variables, freight rates, emission allowances, inflation rates or other official economic statistics.

This expansion of the definition of financial instrument also makes the regulated domain of investment firms and credit institutions much wider. As a result, a regulation comes into force in Belgium again for specialized intermediaries in commodity derivatives.

Other important new definitions relate to MTFs (Article 46, 14°), systematic internalizers (Article 46, 15°), market makers (Article 46, 16°), tied agents (Article 46, 22°), qualifying holdings (Article 46, 24°), trading venues (Article 46, 31°) and regulated markets (Article 46, 32°).

Art. 38. This article adapts Article 47 of the Law of 6 April 1995. In this article, the various categories of investment firms are specified together with the investment services and activities and ancillary services that they may carry out.

In this regard, it should be noted that the transposition of MiFID cannot take place without differentiating the Directive obligations according to the Belgian sub-categories of investment firms. Certain Directive obligations are only pertinent for one category of investment firm and not for another, given in particular the differences in services that can be provided by each category. Account must also be taken of the fact that investment advice is now qualified as a full-fledged investment service by MiFID. This implies that firms providing investment advice now require a license as an investment firm. The categories of investment firms provided for by Belgian law must therefore be adapted. This means that, as the Council of State requests in its opinion, there is indeed a sufficient basis in the Directive to adapt Article 47 of the Law of 6 April 1995. The same applies to the articles 42, 44, 45, 61, 70, 76 and 93 of this draft explained below.

With regard to stock exchange companies, the principle is maintained that they are eligible for all investment services and ancillary services.

The status of portfolio management companies is adapted with regard to the investment services that these intermediaries are authorized to provide. They may now intervene in the placement of issues without placement guarantee. This investment service allows portfolio management companies to offer their clients portfolio management based on collective investment undertakings (“sicavised management”) for which these managers also act as managers. This gives them the same possibilities as the management companies of collective investment undertakings which, under the Law of 20 July 2004, have the possibility to commercialize the funds they manage to their clientele.

Finally, the decree proposes to extend the name of the status of portfolio management company to portfolio management and investment advice company. The change in this name is justified on the one hand by the fact that under the Directive, investment advice is no longer an ancillary service but a full-fledged investment service, and on the other hand because the status of investment advice company regulated in Title II of Book II of the law is abolished. Existing investment advice companies will have the choice either to upgrade to the status of investment firm, or to choose the status of broker in banking and investment services regulated by the Law of

Il faut y noter les définitions des nouveaux services et activités d’investissement d’une part et les nouveaux services auxiliaires d’autre part.

Les nouveaux services d’investissement sont :
— le conseil en investissement (alors que, sous la Directive ISD, les conseils en investissement ne constituaient qu’un service auxiliaire, la Directive MiFID requiert dorénavant dans l’ensemble de l’Union européenne un agrément pour l’exercice de cette activité, en raison de la dépendance croissante des investisseurs par rapport aux recommandations personnelles) ; — l’exploitation d’un MTF.

Les nouveaux services auxiliaires sont :
— la recherche en investissements (« research ») et l’analyse financière ou toute autre forme de recommandation générale concernant les transactions sur instruments financiers ; — les services et activités d’investissement et services auxiliaires qui concernent la valeur sous-jacente de certains dérivés sur matières premières (uniquement dans la mesure où leur fourniture est liée à ces dérivés, en particulier pour assurer le règlement des transactions sur ces dérivés).

Dorénavant, le service qui consiste à mettre en rapport des investisseurs, permettant ainsi la réalisation, entre ces investisseurs, d’une opération, n’est plus mentionné de manière distincte dans la loi. Dans le prolongement de la Directive et du 20e considérant, il est toutefois précisé que ce service est compris dans « la réception et la transmission d’ordres ». L’apport de clients à une entreprise d’investissement ou un établissement de crédit ne relève pas de ce service.

L’article 46, 9° et 10°, définit ce qu’il y a lieu d’entendre par conseil en investissement, dans le prolongement de l’article 4, paragraphe 1, point 4, de la Directive 2004/39/CE et de l’article 52 de la Directive 2006/73/CE.

Il importe de souligner que désormais, la définition du conseil en investissement est large. Il faudra dorénavant parler de conseil en investissement :
— soit lorsqu’une recommandation a été présentée comme une recommandation adaptée à la personne concernée, c’est-à-dire lorsqu’il est raisonnable, eu égard aux circonstances pertinentes, de supposer qu’elle est adaptée au client ; — soit lorsqu’elle est fondée sur l’examen de la situation propre à cette personne.

Le conseil en investissement peut se présenter sous plusieurs formes : il peut s’agir d’une recommandation ad hoc personnalisée, qui ne porte pas nécessairement sur l’ensemble du portefeuille ou sur la stratégie du client. Il peut également s’agir d’une relation de conseil plus durable.
Le régime d’agrément et de protection est applicable sans exception à tous les instruments financiers et aux services fournis à des clients tant professionnels que non professionnels.

Les conseils relatifs aux instruments financiers dispensés dans un journal, magazine ou toute autre publication destinée au grand public (y compris sur internet), ou bien dans le cadre d’une émission de télévision ou de radio, ne doivent pas être considérés comme des recommandations personnalisées.

Les conseils génériques concernant un type d’instrument financier ne constituent pas des conseils en investissement car le concept ne vise que les conseils portant sur des instruments financiers particuliers. Toutefois, si une entreprise d’investissement donne à un client des conseils sur un type d’instrument financier en général, qu’elle présente comme adaptés à sa personne ou qui est fondé sur un examen de sa situation personnelle, et qu’il s’avère en fait que ces conseils ne sont ni adaptés à ce client ni fondés sur un examen de sa situation personnelle, il est probable qu’en l’espèce - sous réserve des circonstances propres à chaque cas particulier - l’entreprise agit en contrevenant aux dispositions de l’article 27, §§ 1er ou 2, de la loi du 2 août 2002. Plus précisément, une entreprise qui donnerait de tels conseils serait susceptible de manquer à l’obligation d’agir d’une manière honnête, équitable et professionnelle servant au mieux les intérêts de ses clients qui lui incombe en vertu de l’article 27, § 1er. De tels conseils seraient également susceptibles de contrevenir à l’exigence de l’article 27, § 2, selon laquelle l’information qu’adresse l’entreprise à ses clients doit être correcte, claire et non trompeuse.

Les préparatifs d’une entreprise d’investissement pour la fourniture d’un service ou d’une activité d’investissement doivent être considérés comme faisant partie intégrante dudit service ou de ladite activité. Il faut y inclure également la fourniture par une entreprise d’investissement de conseils généraux à des clients ou clients potentiels avant ou pendant la fourniture de conseils en investissement, ou la fourniture d’un autre service ou d’une autre activité d’investissement.

Une recommandation générale (c.-à-d. une recommandation destinée aux canaux de distribution ou au public) portant sur une transaction en un instrument financier ou sur un type d’instrument financier constitue un service auxiliaire au sens de l’article 46, 2°, 5), de la loi du 6 avril 1995, avec pour conséquence que la protection offerte par la loi trouve à s’appliquer en ce cas.

La définition des instruments financiers renvoie à la loi du 2 août 2002. Cette définition est importante dans la mesure où la liste des instruments qui sont qualifiés d’instruments financiers est étendue aux instruments dérivés sur matières premières (« commodities derivatives ») ainsi qu’à certains nouveaux instruments, tels que les dérivés de crédit (« credit derivatives ») et les contrats dérivés relatifs à des variables climatiques, à des tarifs de fret, à des autorisations d’émissions ou à des taux d’inflation ou d’autres statistiques économiques officielles.

Cet élargissement de la définition des instruments financiers agrandit d’autant le domaine réglementé des entreprises d’investissement et des établissements de crédit. Elle entraîne par ailleurs la réapparition en Belgique d’un régime consacré aux intermédiaires spécialisés en dérivés sur matières premières.

D’autres nouvelles définitions importantes portent sur les MTF (article 46, 14°), l’internalisateur systématique (article 46, 15°), les teneurs de marché (article 46, 16°), l’agent lié (article 46, 22°), la participation qualifiée (article 46, 24°), l’entreprise de marché (article 46, 31°) et les marchés réglementés (article 46, 32°).

Art. 38. Cet article adapte l’article 47 de la loi du 6 avril 1995. Il spécifie les différentes catégories d’entreprises d’investissement ainsi que les services et activités d’investissement et services auxiliaires qu’elles sont autorisées à fournir.

Il convient à cet égard de faire remarquer que la transposition de la MiFID ne peut s’opérer sans différencier les obligations, prévues par la Directive, selon les sous-catégories d’entreprises d’investissement définies dans la loi belge. Certaines obligations prévues par la Directive ne sont pertinentes que pour une seule catégorie d’entreprises d’investissement, et non pour les autres, eu égard notamment aux différences dans les services qui peuvent être fournis par chacune des catégories. Il convient en outre de tenir compte du fait que le conseil en investissement est considéré par la MiFID comme un service d’investissement à part entière. Cela signifie que les entreprises qui fournissent des services de conseil en investissement doivent désormais disposer d’un agrément comme entreprise d’investissement. Les catégories d’entreprises d’investissement prévues par la loi belge doivent dès lors être adaptées. Il en résulte qu’il existe bel et bien, comme le Conseil d’Etat le demande dans son avis, une base suffisante dans la Directive pour adapter l’article 47 de la loi du 6 avril 1995. Il en va de même pour les articles 42, 44, 45, 61, 70, 76 et 93, du présent projet, commentés ci-dessous.

En ce qui concerne les sociétés de bourse, le principe est maintenu selon lequel elles entrent en ligne de compte pour l’ensemble des services d’investissement et services auxiliaires.

Le statut des sociétés de gestion de portefeuille est adapté pour ce qui concerne les services d’investissement que sont autorisés à fournir ces intermédiaires. Ils peuvent désormais intervenir pour le placement d’émissions sans engagement ferme. Ce service d’investissement permet aux sociétés de gestion de portefeuille d’offrir à leur clientèle une gestion de portefeuille s’appuyant sur des organismes de placement collectif (gestion dite « sicavisée ») dont ils assurent simultanément la gestion. Ce faisant, elles se voient attribuer les mêmes possibilités que les sociétés de gestion d’organismes de placement collectif qui, en application de la loi du 20 juillet 2004, ont la possibilité de commercialiser auprès de leur clientèle les fonds qu’elles gèrent.

Enfin, il est proposé, aux termes de l’arrêté, d’élargir la dénomination du statut de société de gestion de portefeuille pour la dénommer « société de gestion de portefeuille et de conseil en investissement ». La modification de cette dénomination se justifie d’une part en raison du fait qu’aux termes de la Directive, le conseil en investissement ne constitue plus un service auxiliaire mais un service d’investissement à part entière, et d’autre part en raison de l’abrogation du statut de société de conseil en placement tel que réglé au titre II du livre II de la loi. Les sociétés de conseil en placement pourront soit se hisser au statut d’entreprise d’investissement, soit prendre le statut de courtier en services bancaires et en services d’investissement réglé par la loi du

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22 March 2006 concerning the mediation in banking and investment services and the distribution of financial instruments. Even those who exclusively provide investment advice and no portfolio management, and therefore only apply for a license for that purpose, can nevertheless receive a license under the name "portfolio management and investment advisory company".

The decree further proposes that two statuses of investment companies no longer be maintained. These are the status of companies for brokerage in financial instruments and the status for the placement of orders in financial instruments.

The first status was a specific status that regulated a particular profession on the Belgian market of intermediaries. It concerns intermediaries active in bringing two or more professional investors into contact with each other, whereby a transaction is concluded between these investors. The sector of these intermediaries, which was primarily active on the interbank market, has lost significance, mainly due to the competition it faced from a number of large foreign players and from a number of automated platforms. Belgium currently knows only one such intermediary, which focuses on government debt securities, and whose services must henceforth be qualified as an MTF (Multilateral Trading Facility).

Furthermore, the status of companies for the placement of orders in financial instruments has not been very successful. The number of intermediaries at the end of 2006 amounted to only three companies focusing on the investment service "receiving and transmitting orders" as well as on the investment service "investment advice". Given the extension of the status of portfolio management and investment advisory company, the status of company for the placement of orders in financial instruments becomes superfluous.

Art. 39. The adaptations of Article 48 of the law are purely terminological adaptations resulting from the definitions of investment services and activities. It can be specified that if an investment company performs one or more investment services or one or more investment activities on an irregular basis that are not covered by its license, it does not need an additional license under this law (see recital 19 of the MiFID).

Art. 40. In Article 50, the time limit within which the CBFA must express its opinion on the license in accordance with the Directive is reduced from 9 to 6 months from the submission of a complete application.

Art. 41. Article 51 of the law is adapted to emphasize the importance of financial instruments in the license application. Given the new forms of financial instruments, such as derivatives on commodities and derivatives on climate variables, it is necessary that the supervisor ensures that investment companies wishing to be active in these instruments possess sufficient knowledge and that their organization is sufficiently adapted to ensure the monitoring of these instruments. The categories of financial instruments concerned are therefore considered an essential part of the license file and the license conditions.

Art. 42. Pursuant to Article 5, paragraph 3, of MiFID, Member States must establish a register of all investment companies containing information on the services and/or activities that the investment company is authorized to perform under its license. Article 53 of the law regulates the drawing up of the Belgian lists of investment companies. The aforementioned article is adapted to take into account the new statuses of investment companies following the upgrading of investment advice to an investment service.

Art. 43. Article 54 of the law regulates cooperation with the European Commission regarding investment companies from third countries. The adaptations concern references to the update of the applicable European Directives.

Art. 44. This article amends Article 55 of the law, which regulates the protection of certain names specific to the status or specific to the investment services that these companies may perform. The adaptations take into account the changes made to the status of investment company. It also allows brokers in banking and investment services to use the name "investment advice" or "investment advisor".

Art. 45. Article 58 of the law regulates the initial capital requirements for investment companies. It implements Article 12 of MiFID.

The decree modifies these requirements for portfolio management and investment advisory companies.

22 March 2006 concerning the mediation in banking and investment services and the distribution of financial instruments.

Portfolio management and investment advisory companies are required to have an initial capital of 125,000 EUR. No reduction of this amount to 50,000 EUR is made, as possible under Directive 2006/49/EC of 14 June 2006 on the capital adequacy of investment firms and credit institutions.

As for stock exchange companies, the amount provided for in the aforementioned Directive, namely 730,000 EUR, is retained for stock exchange companies that:
— conduct transactions with financial instruments for their own account; — undertake the issuance of financial instruments; — guarantee the placement thereof; — operate an MTF; — act as custodian for financial instruments of insurance companies, for collective investment undertakings as well as for credit institutions insofar as the latter act on behalf of their clientele.

This amount of 730,000 EUR represents a reduction of the current capital requirements for stock exchange companies performing the aforementioned activities and services, provided that the initial capital requirements must be read together with the own funds requirements to be met on a continuous basis.

Art. 46. This article provides for an adaptation of Article 59 of the law, introducing a new transparency threshold, namely the qualified participation, as defined in Article 46, 24° of the law. In Article 59, a fourth paragraph is additionally included, obliging the CBFA to refuse the license if the statutory or administrative provisions of a third country applicable to a person with whom the company has close links constitute an obstacle to the proper exercise of its supervisory tasks.

Art. 47. This article amends Article 60 of the law. It clarifies how the concepts of professional reliability and appropriate experience required in respect of effective management are to be assessed. These must be analyzed in light of the need for sound and prudent management of the company.

A new paragraph is inserted in the article, in accordance with the MiFID Directive, granting the CBFA broad discretion regarding the assessment of the required professional reliability and appropriate experience. If the CBFA is not convinced that the proposed persons who will effectively lead the business possess these capabilities, it must refuse the license. This places the burden of proof regarding the appropriateness of both capabilities on the applicants.

Art. 48. This article adds a new Article 62bis to the law, which specifically concerns the organizational requirements when performing investment services.

Article 62bis contains in particular the obligation to possess:
— policies and procedures to ensure compliance with regulations by the company, employees, and directors, including rules on personal transactions; — procedures and rules to prevent conflicts of interest; — measures to ensure continuity ("business continuity"); — measures to limit operational risk in the event of outsourcing ("outsourcing") of activities; — a policy and organization regarding data retention; — measures to safeguard client funds.

Since the matters defined in this article, under MiFID, fall within the competence of the home country of the investment company, the obligations of this article also apply to the branches of Belgian companies in other Member States. Belgian companies will only be subject to these Belgian regulations, even when they provide services in other Member States or have established a branch. An exception to this are the provisions regarding data retention, where it will be the host supervisor of the branch that will ensure compliance.

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compliance with data retention rules, without prejudice to the direct access of the CBFA as the home state supervisor (see Article 13, paragraph 9 of MiFID).

These provisions must be further elaborated to take into account the Implementing Directive 2006/73 of 10 August 2006. Therefore, the article provides the possibility to supplement this matter either by Royal Decree for certain provisions, or further by a regulation of the CBFA.

For the sake of regulatory transparency and to provide institutions with appropriate legal certainty, Article 15, paragraph 3, of the Implementing Directive requires each competent authority to publish a statement on its policy regarding the outsourcing of the management of retail client assets to service providers in third countries. This obligation is specified in draft Article 62bis, § 4, of the Law of 6 April 1995 and draft Article 20bis, § 4, of the Banking Law of 22 March 1993. This statement will include examples of cases in which the CBFA is unlikely to object to such outsourcing, and will also explain why outsourcing in such cases is unlikely to compromise the institution's ability to comply with the regulatory conditions for outsourcing.

It should be noted that, in addition to this policy statement, binding rules on outsourcing will be included in a regulation of the CBFA adopted on the basis of draft Article 20bis, § 8, of the Banking Law and draft Article 62bis of the Law of 6 April 1995, aiming to transpose Articles 13 to 15 of the Implementing Directive.

Art. 49. This article amends Article 65 of the Law. The obligation to join the investor protection scheme is generalized to all investment firms.

Art. 50. This article adapts § 2 of Article 66 of the Law. The text is simplified by no longer taking into account the transitional measure regarding own funds, which was necessary when introducing the Law of 6 April 1995.

Art. 51. This article adapts Article 67 of the Law to take into account the thresholds set by Directive 2004/39/EC regarding shareholder transparency declarations. The Directive provides that a mandatory notification is required as soon as the potential shareholder intends to reach a qualified participation (10%) or a participation of 20%, 33%, or 50%, or when the investment firm would become a subsidiary.

The transparency obligation for the aforementioned thresholds applies both when exceeding them and when falling below the relevant level.

Art. 52. This article adapts Article 68 of the Law to take into account the provisions included in the Directive aimed at ensuring that investment firms from the European Economic Area wishing to operate in third countries can benefit from reciprocal treatment.

Art. 53. This article updates a reference in Article 69 of the Law.

Art. 54. This article completes Article 69 of the Law with a reference to Article 62bis, which determines, among other things, the conflict of interest regime.

Art. 55. This article adapts Article 75 of the Law by making a correction to align the text with the terminology introduced by the Law.

Articles 56 to 58. Articles 56 to 58 of the draft introduce the main legal rules for the protection of client assets, whether cash or financial instruments. Additionally, these draft provisions provide the necessary legal authorizations for the further elaboration and specification of the protection scheme, which essentially results from the transposition of Article 13, paragraphs 7 and 8, of Directive 2004/39/EC and Articles 16 to 19 of Directive 2006/73/EC implementing the aforementioned Article 13.

Regarding funds, Article 56 of the draft makes the necessary changes to Article 77 of the Law of 6 April 1995. Paragraph 2 of this Article 77 is replaced in order to transpose Article 18, paragraph 1, of Directive 2006/73/EC, which lists the categories of custodians with whom funds may be deposited that a stock exchange company may receive.

In the second paragraph of the aforementioned Article 77, § 2, an exception to this deposit obligation is made, as in the past, for stock exchange companies when it concerns immediately callable funds, funds callable within a maximum period of three working days, and funds provided to cover client obligations.

Article 77, § 2, third paragraph, takes over the current Article 77, § 2, third paragraph, which determines the unavailability of client assets, meaning that the institutions with which stock exchange companies deposit client funds cannot assert rights resulting from their own claims against the stock exchange company, particularly through debt set-off agreements. Similarly, the creditors of the stock exchange company cannot assert rights against these assets regarding the stock exchange company.

In § 3 of Article 77, the special privilege is reformulated that the clients of the stock exchange company have in the event of the stock exchange company's insolvency on the funds deposited in application of § 2. Taking into account case law that allows the recovery of funds from an account under certain strict identification conditions, this provision thus introduces an exception for funds that could have been recovered by their owner (See here: Brussels, 15 September 1995, unpublished, cited by J.-M. VAN COTTEM, « La réception de dépôts par les entreprises d’investissement », Bank. Fin., 1996/6, p. 346).

Paragraph 4 of Article 77 contains the authorization provision that allows the protection scheme for clients to be further developed, specifically by establishing the conditions and modalities for the investment of client funds, as well as by imposing information provision to clients.

Article 57 of the draft introduces into the Law of 6 April 1995 an Article 77bis for client financial instruments, which, in accordance with Article 13, paragraph 7, of Directive 2004/39/EC and Article 19 of Directive 2006/73/EC, imposes the obligation to obtain the explicit consent of the client before using these financial instruments in any way.

This obligation to obtain prior consent of the client previously resulted from the criminal sanction imposed by Article 148, § 3 of the Law of 6 April 1995. This Article 148, § 3 is therefore modified in parallel by Article 75 of the draft to link it to the obligation to obtain client consent, which is now positively formulated in Article 77bis of the Law.

For financial instruments, paragraph 2 of Article 77bis constitutes the legal basis that allows further development of the client protection scheme, specifically regarding the conditions and modalities that financial instruments deposited by clients with stock exchange companies or credit institutions must meet, and the actions these intermediaries may perform regarding these financial instruments, particularly regarding the authorization requirements referred to in § 1.

Thus, the King will specifically be able to establish the modalities for granting the authorization referred to in § 1. In addition, the King will also be able to develop rules for the organization, protection, and information of clients regarding the receipt of financial instruments by these intermediaries and their deposit with other intermediaries.

For the transposition of Article 16, paragraph 1, points a) to c), of the Implementing Directive 2004/39/EC, Article 58 of the draft introduces into the Law of 6 April 1995 an Article 77ter, which establishes the main rules for the accounting organization and registration of client assets (both funds and financial instruments). Furthermore, § 2 of this provision regulates the legal authorization for supplementing these rules applicable to stock exchange companies and credit institutions.

To protect the ownership rights and other similar rights of the investor on securities, as well as his rights on funds entrusted to a company, these rights must be distinguished from the rights of the company. This principle may, however, not prevent the company from carrying out transactions in its own name but for the account of the investor, when the nature of the transaction requires it and the investor agrees, for example in the case of securities lending.

When a client, in accordance with Community legislation, particularly Directive 2002/47/EC of the European Parliament and of the Council of 6 June 2002 concerning financial collateral arrangements, acts as a provider of financial collateral, the provisions of this Directive apply.

As previously, the obligation to place funds incumbent on the stock exchange company, by virtue of the second paragraph of said Article 77, § 2, is subject to an exception regarding immediately callable funds or funds callable within a maximum period of three working days, as well as funds provided to cover client obligations.

The third paragraph of Article 77, § 2, reproduces the provision of the current Article 77, § 2, third paragraph, providing for the unavailability of client assets, according to which the institutions with which stock exchange companies deposit client funds cannot assert rights resulting from their own claims against the stock exchange company, particularly by way of set-off agreement. Similarly, the creditors of the stock exchange company cannot enforce their rights against these assets regarding the stock exchange company.

§ 3 of Article 77 reformulates the special privilege provided for the benefit of the clients of the stock exchange company on the funds deposited in application of § 2, in the event of the failure of the stock exchange company. Taking into account the case law allowing, under certain strict identification conditions, the recovery of funds in an account, the provision thus reserves the case of funds that could have been recovered by their owner (See thus: Brussels, 15 September 1995, unpublished, cited by J.-M. VAN COTTEM, « La réception de dépôts par les entreprises d’investissement », Rev. Banque, 1996/6, p. 346).

§ 4 of Article 77 is the authorization provision allowing to complete the client protection scheme, in particular by imposing conditions and modalities concerning the placement of client funds as well as by the way of information that clients must have.

Regarding client financial instruments, the draft Article 57 introduces into the Law of 6 April 1995 an Article 77bis, the purpose of which is to formulate the obligation, in accordance with Article 13, § 7 of Directive 2004/39/EC and Article 19 of Directive 2006/73/EC, to obtain the express consent of the client for any use of these financial instruments.

Indeed, previously, the obligation to obtain prior authorization of the client was derived from the criminal sanction provided by Article 148, § 3 of the Law of 6 April 1995. Correlatively, Article 75 of the draft modifies said Article 148, § 3 to link it with the obligation to obtain the authorization of the client now formulated positively by Article 77bis of the Law.

Article 77bis, § 2 constitutes for financial instruments the legal basis allowing to complete the client protection scheme, in particular regarding the conditions and modalities to which financial instrument deposits made by clients with stock exchange companies or credit institutions must respond, and the acts that these intermediaries can perform regarding these financial instruments, in particular regarding the authorization requirements provided by § 1.

The King can thus define the modalities according to which the authorization provided by § 1 must be given. The King can also determine the organization rules and the protection and information rules for clients related to the receipt of financial instruments by these intermediaries and their deposit with other intermediaries.

Thus transposing Article 16, § 1, a) to c), of the Implementing Directive, the draft Article 58 introduces an Article 77ter into the Law of 6 April 1995 providing the essential rules regarding the accounting organization and registration of client assets (namely funds or financial instruments). For the rest, § 2 of the provision provides the legal authorization allowing to complete these rules applicable to stock exchange companies and credit institutions.

In order to protect the ownership rights and similar rights of an investor on securities as well as his rights on funds entrusted to a company, it is appropriate to distinguish these rights from those of the company in question. This principle should, however, not prevent a company from operating in its own name but for the account of an investor, when the very nature of the operation requires it and the investor consents, for example by lending securities.

When, in accordance with Community legislation and in particular Directive 2002/47/EC of the European Parliament and of the Council of 6 June 2002 concerning financial collateral agreements, a client

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the full ownership of financial instruments or funds as collateral transfers to an investment firm, these financial instruments or funds are no longer considered the property of the client.

Art. 59. This article adapts Article 78 of the law by updating a reference.

Art. 60. This article replaces Article 79 of the law. The original provisions contained the rules that investment firms were required to follow when providing portfolio management services. These provisions now find their place in Article 27 of the Law of 2 August 2002 and the implementing provisions provided therein.

The new Article 79 regulates how investment firms and credit institutions can cooperate with connected agents.

The Law of 22 March 2006 on intermediation in banking and investment services regulates the status of brokers and agents in banking and investment services. For the application of Article 79, agents in banking and investment services must be considered as connected agents.

The new Article 79 regulates the obligations incumbent upon investment firms when they engage a connected agent.

The article emphasizes the responsibility of the institutions for the acts of the connected agents, particularly when these agents are authorized to handle client funds and financial instruments. Connected agents can, in the context of the services they provide on behalf and for the account of the institution they represent, receive client funds and financial instruments. This provision must, however, be interpreted restrictively. This function must be limited to funds and financial instruments in transit (see also Article 10, § 2, of the Law of 22 March 2006).

Art. 61. This article amends Article 80 of the law. A provision is included that empowers the King to determine, where appropriate, the rules applicable to investment firms that execute brokerage transactions in financial instruments.

Since the status of financial instrument brokerage companies is abolished, this provision offers the possibility to continue regulating this particular form of interprofessional intermediation on the part of investment firms should this market experience a revival. This service should be considered a special form of the investment service "reception and transmission of orders in financial instruments."

Art. 62. This article replaces Article 81 of the law. The original provisions concerned the obligations of financial instrument brokerage companies, a category of investment firms abolished by this draft.

The new article confirms, in accordance with the Directive, the obligation of investment firms to always comply with the conditions of the initial authorization. It thereby imposes an obligation on the institution to submit any significant changes to the legal authorization conditions to the CBFA.

Art. 63. This article replaces Article 82 of the law. The original provisions concerned a code of conduct now regulated in Article 27 of the Law of 2 August 2002.

The new Article 82 provides for a notification obligation to the CBFA when investment firms commence or cease systematic internalizer services. This must enable the supervisory authority to keep up-to-date the lists it is required to publish in an orderly manner.

Art. 64 to 68. Articles 64 to 68 contain amendments to Section VI and Section VII of Chapter II of Title II of Book II of the Law of 6 April 1995.

These concern the operating conditions for investment firms under Belgian law in the event of the opening of subsidiaries or branches abroad and in the case of the free provision of services in another Member State of the European Economic Area.

This is essentially a reformulation to take into account the provisions of Directive 2004/39/EC. The provisions specify in particular the information that the companies concerned must communicate to the CBFA before establishing themselves in other Member States or providing services. Thus, investment firms must now specify whether they will use connected agents in their cross-border activities.

Art. 69. This article adapts Article 101 of the law, which describes the duties of approved auditors. Certain specific aspects related to their duties are clarified. This concerns in particular the reporting of facts or decisions that jeopardize the continuity of the undertaking.

A new duty concerns the adequacy of the organization of the investment firm to safeguard client assets. At least once a year, a report must be drawn up on this (see Article 20 of the implementing Directive).

Art. 70. This article concerns an adaptation of Article 102 of the law following the modification of the various statutes of investment firms. As in the past, only stock exchange companies remain subject to the obligation to have an approved auditor. Given that portfolio management and investment advisory companies cannot hold client assets, nor execute orders in financial instruments for their own account, the accounting organization of these institutions remains limited compared to stock exchange companies. The obligation to have an approved auditor is therefore not necessary in these cases.

Art. 71. Article 104 of the law extends the possibilities for taking exceptional measures to the hypothesis where the authorization was obtained irregularly. This initially refers to the hypothesis where false declarations were made during the authorization phase or where the applicant intentionally withheld relevant information. Furthermore, it follows the Directive provision that prescribes the withdrawal of authorization in cases of serious non-compliance with the operating conditions for investment firms, including conduct rules. Article 104 is therefore supplemented with the possibility for the CBFA to take appropriate remedial measures in case of non-compliance with the conduct rules defined in the Law of 2 August 2002 implementing the MiFID Directive.

These rules do not prejudice the enforcement rules determined in the Law of 2 August 2002 itself, such as the possibility to impose administrative fines in case of non-compliance with conduct rules.

Art. 72. Article 66 adapts a reference to the European Directive in Article 105 of the law.

Art. 73. This article amends the title of Book III of the law.

Art. 74. This article abolishes Titles I and II of Book III of the law.

Title I, which concerned intermediaries in financial instruments and investment instruments relating to commodities, has been replaced by the rules regulating the status of investment firms, as financial instruments have been extended to derivatives on commodities.

Title II concerned investment advisors. These rules required authorization whenever investment advice was provided to the public. Since the Directive now considers investment advice, as defined in the Directive, as a full-fledged investment service, a separate status for investment advisory companies is no longer useful, in addition to the status of investment firms on the one hand and banking and investment services brokers on the other.

This article also abolishes Article 138 of the Law of 6 April 1995, given the abolition of the status of financial instrument brokerage companies.

Art. 75. See the commentary on Articles 56 to 58.

Art. 76. This article adapts Article 163 of the law, which provides for various arrangements to facilitate the transition between the various categories of investment firms before and after the legislative amendments. These transitional measures aim to guarantee as much as possible the continuity of the current activities of the institutions concerned. The CBFA must, however, be enabled to verify whether the operating conditions relating to any services and activities that fall for the first time under the definition of investment services, auxiliary services, and financial instruments, meet the conditions of the Directive.

Art. 77. This article abolishes a number of transitional measures that have become obsolete.

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Art. 78. This article replaces Article 168 of the Act and is further explained hereinafter, following the request of the Council of State.

Pursuant to the first paragraph of the new provision, investment firms that have already provided investment services, investment activities, and ancillary services within the EEA before 1 November 2007, and have notified this using Articles 83 and 87 of the Act of 6 April 1995, will not be required to undergo a new notification procedure. This transposes Article 71(4) of MiFID. The notifications carried out in the past under the aforementioned provisions concerned only licensed investment or ancillary services for which a European passport existed under the Investment Services Directive.

The second and third paragraphs concern cross-border activities of investment firms for services and/or instruments for which there was previously no European passport regulated by European directives. Nevertheless, Belgian investment firms could provide these services, including under Article 75 of the Act of 6 April 1995, which allows investment firms to provide services that align with their authorization. Belgian investment firms could also validly offer these services in several other Member States in accordance with foreign regulations. This cross-border service provision also ensures continuity, as MiFID only requires the exchange of information between competent authorities for services offered for the first time after 1 November 2007. This continuity is of indefinite duration. The second and third paragraphs do, however, require the concerned firms to inform the CBFA appropriately so that it can properly exercise its supervisory tasks regarding these services and activities.

The same principle applies to financial instruments that were not qualified as such before 1 November 2007, but on which the services and activities of the investment firm abroad already focused.

Articles 79 to 81. These articles repeal certain articles of the Act that have become superfluous.

CHAPTER IV. — Amendments to the Act of 22 March 1993 on the status and supervision of credit institutions

Art. 82. This article adds an additional definition to Article 3 of the Act of 22 March 1993, hereinafter "the Banking Act," regarding the notion of systematic internaliser.

Art. 83. This article inserts a new Article 20bis into the Banking Act. The content and motivation of this provision are the same as those of the new Article 62bis in the Act of 6 April 1995, with the exception of Article 62bis, § 6, second paragraph, which imposes specific measures to safeguard client funds, with the aim of preventing the investment firm from using these funds for its own account. Unlike an investment firm, a credit institution is indeed authorized to use its clients' funds for its own account.

Art. 84. This article inserts Article 46bis into the Banking Act, imposing an information obligation on credit institutions regarding the CBFA if they wish to provide services as systematic internalisers. This regulation enables the CBFA to publish the list of institutions engaging in systematic internalisation.

Art. 85. This provision clarifies the auditor's mandate and aims, among other things, to transpose Article 20 of the Implementing Directive.

Art. 86. This article amends Article 57, § 4, of the Banking Act, whereby systematic disregard of conduct rules can lead to the taking of exceptional measures against the credit institution (see the commentary on Article 71 in this regard).

Art. 87. Article 87 contains the adaptation of Article 75 of the Banking Act of 22 March 1993. This Article 75 deals with the exceptional measures that can be taken regarding branches and service provision in Belgium by credit institutions subject to another Member State of the European Economic Area.

The modification made by Article 87 mainly concerns the addition of a new paragraph (new Article 75, § 1) to take into account Article 62(1) of the European Directive concerning financial instrument markets. The previous §§ 1 to 5 of Article 75 become Article 75, §§ 2 to 6.

In accordance with the new Article 75, § 1, of the Banking Act, when the CBFA finds that a credit institution operating in Belgium under the free provision of services or via a branch violates obligations resulting from provisions adopted to implement the MiFID Directive, for which the CBFA is not granted powers, it must inform the competent authority of the home Member State of these findings. If the measures taken by the home Member State are insufficient and the credit institution continues to act in a manner clearly prejudicial to the interests of investors in Belgium or the orderly functioning of the markets, the CBFA may take certain measures to protect investors and the good functioning of the markets. Article 75, § 1, specifies these measures.

The new provision takes into account the division of tasks between competent authorities introduced by the MiFID Directive, particularly regarding the enforcement of operating conditions to protect investors (conduct rules).

CHAPTER V. — Amendments to the Act of 20 July 2004 concerning certain forms of collective management of investment portfolios

Art. 88. This article adapts Article 3 of the Act of 20 July 2004 concerning certain forms of collective management of investment portfolios (hereinafter in this chapter: "the Act"), which reflects the entire set of definitions.

This article modifies, in particular, Article 3, 1°, a), ii), of the Act, which considers admission to trading on a regulated market as a public offer. As a result of the transposition of the MiFID Directive, the term "regulated market" is replaced by the words "MTF or regulated market."

This modification is also carried out for the other provisions of the Act.

Art. 89. This article aims to modify Article 5, § 3, 3°, b), of the Act due to the adapted description of an investment firm as an undertaking whose normal business consists of professionally providing or offering one or more investment services to third parties and/or exercising one or more investment activities.

Art. 92. This article modifies Article 43 of the Act. On the one hand, the term "management structure" is replaced by the term "policy structure," thereby using the same terminology for the management companies of collective investment undertakings, investment companies, investment firms, and credit institutions. On the other hand, the article now specifies that the management company must possess, in addition to the necessary means for its own and its intended activities appropriate administrative, accounting, financial, and technical organization, also these means for its own and its intended activities appropriate internal control.

This modification is also carried out in other provisions of the Act.

Art. 93. This provision is necessary given the changes in the categories of investment firms.

Art. 94. This article provides for the replacement of Article 69 of the Act. The original text of Article 69 essentially stipulated that the collective investment undertaking must comply with Article 26 of the Act of 2 August 2002, which formulated the conduct rules, in its relationship with securities holders. Article 241 stipulated that as long as the entry into force of Article 26 did not take place, the collective investment undertaking was required to comply with Article 36 of the Act of 6 April 1995.

Following the transposition of the Directive, Article 26 has entered into force but has also been modified, such that the conduct rules are now found in Articles 27 and 28bis of the Act of 2 August 2002.

Given that the conduct rules formulated in the Act of 2 August 2002 aim to transpose the MiFID Directive, and this Directive excludes collective investment undertakings from its scope of application, these undertakings are not subject to the conduct rules as formulated by the aforementioned Act.

Notwithstanding this exclusion, the common law contractual duty of care remains fully applicable to collective investment undertakings.

Furthermore, the new text of Article 69 grants the King the authority to establish conduct rules that the collective investment undertaking must comply with in the exercise of its management functions, taking into account, where applicable, the nature of the management function concerned. The King may, in this regard, impose, among other things, on the collective investment undertaking...

Art. 94. The King may impose on the management company of collective investment institutions the obligation to comply in whole or in part with Articles 27 and 28bis of the Law of 2 August 2002 and the decrees taken for its implementation. The aforementioned articles formulate the rules of conduct as they will apply after the transposition of the Directive.

Art. 95. This article repeals Article 70 of the Law. Article 70 obliged the collective investment institution to comply with Article 27 of the Law of 2 August 2002. The latter article, which anticipated the transposition of the Directive but had not yet entered into force, has been fully amended as a result of this transposition. In accordance with Article 27 of the Law of 2 August 2002, the management company of collective investment institutions was required to adopt an internal code of conduct with adapted rules and procedures to ensure compliance with Article 25, which formulated the rules on market abuse, and Article 26 (the rules of conduct) of the Law of 2 August 2002. Furthermore, this article contained rules regarding the appointment and tasks of a person or committee responsible for ethics. Henceforth, the rules of conduct are contained in Article 27.

In the transposition of Directive 2006/48/EC of 14 June 2006 on the taking up and pursuit of the business of credit institutions and Directive 2006/49/EC of 14 June 2006 on the capital adequacy of investment firms and credit institutions, Article 40 of the Law will be amended, thereby reorganizing and refining the organizational requirements for investment companies. Through this amendment, the majority of the provisions of the old Article 27 will be taken up in Article 40 for investment companies. Thus, the new Article 40 of the Law will in particular determine that the investment company must develop an appropriate integrity policy, establish an appropriate independent compliance function, and develop appropriate rules for personal transactions in financial instruments.

Art. 96. This article amends Article 71 of the Law, which relates to the waiver policy of the CBFA, by replacing the reference to Article 26 of the Law of 2 August 2002 with Articles 27 and 28bis of the aforementioned Law.

Art. 107. This article provides for the replacement of Article 153 of the Law, which specifically relates to the organizational requirements when performing management tasks and investment services.

This provision aims to transpose Article 66 of MiFID on the one hand and to reorganize and specify existing provisions on the other. The Council of State notes in its opinion that this provision appears to go beyond the legal authorization. However, attention should be drawn to the fact that the legal authorization (Article 51, § 2, first paragraph, of the Law of 1 April 2007) empowers the King to adapt existing legal provisions in the framework of the transposition of European Directives and simultaneously allows the King to coordinate existing regulation with provisions resulting from Community obligations (see also in this sense in the parliamentary preparation of the Law of 1 April 2007: Parl. St. 2006-2007, no. 2834/001, p. 37). For these reasons, there is no objection to the complete replacement of Article 153 of the Law in this decree. Some novelties are discussed below.

First, Article 153, § 4, first paragraph, determines that the management company of collective investment institutions must, by analogy with the collective investment institution itself, develop an appropriate integrity policy and take the necessary measures to permanently have access to an appropriate independent compliance function.

Furthermore, it is specifically required for the management companies of collective investment institutions to take the necessary measures to permanently have access to an appropriate independent internal audit function.

Finally, the management company of collective investment institutions must, in implementation of Article 13, paragraph 6 of the Directive, keep records of the investment services it has performed, to enable the CBFA to verify whether the company complies with the provisions of the Law, in particular whether the company fulfills its obligations towards its clientele.

The provisions of Article 153 must further be developed to take into account Implementing Directive 2006/73 of 10 August 2006. Therefore, the article provides for the possibility to supplement this matter further by a regulation of the CBFA.

Art. 108. This article supplements Article 154 of the Law with a fifth paragraph, in which, in implementation of Article 13, fifth paragraph of the Directive, a regime is developed for the outsourcing of operational tasks that are critical for a continuous and satisfactory service provision by a management company of collective investment institutions when exercising investment services. Thanks to the insertion of this provision in Article 154, rather than in Article 153 which groups the other organizational requirements, the entire set of provisions regarding outsourcing by a management company is contained in one article.

Art. 109. This article amends Article 169 of the Law. The original text of the latter article stipulated that the management company of collective investment institutions, in its relations with the collective investment institutions it manages, as well as with clients, was required to comply with Article 26 of the Law of 2 August 2002, which formulated the rules of conduct. The entry into force of Article 169, however, was only provided for upon the entry into force of Article 26 of the Law of 2 August 2002; until that moment, the management company was bound to comply with Article 36 of the Law of 6 April 1995.

Paragraph 1 of the new Article 169 grants, by analogy with the collective investment institutions, an authorization to the King to establish rules of conduct that the management company must comply with when exercising the management tasks referred to in Article 3, 9° of the Law, taking into account, where applicable, the nature of the management task involved. The King may thereby impose on the management company of the collective investment institution, among other things, the obligation to comply with Articles 27 and 28bis of the Law of 2 August 2002 and the decrees taken for their implementation. The latter articles, which aim to transpose the MiFID Directive, henceforth formulate the rules of conduct.

The general contractual duty of care remains of course unaffected for the management company of collective investment institutions.

In implementation of Article 5, fourth paragraph of the consolidated Directive 85/611/EEC, Article 169, § 2 imposes on the management company the obligation to comply with Articles 27 and 28bis of the Law of 2 August 2002 when exercising investment services.

Pursuant to paragraph 3 of Article 169, which – at least regarding the exercise of investment services – constitutes the transposition of Article 13, second paragraph of the Directive, the management company must on the one hand establish appropriate policies and procedures to ensure compliance with paragraphs 1 and 2 by the management company, its directors, senior management, employees, and agents, and on the other hand develop appropriate rules for the personal transactions and operations of the aforementioned persons.

Given the interweaving of investment services and management tasks within the organization of the management company, both types of tasks must be harmonized.

Art. 110. This article aims to repeal Article 172 of the Law.

In accordance with Article 172, the management company of collective investment institutions was required to adopt an internal code of conduct with adapted rules and procedures to ensure compliance with Article 169 of the Law and Article 25 of the Law of 2 August 2002, which formulated the rules on market abuse. Furthermore, this article contained rules regarding the appointment and tasks of a person or committee responsible for ethics. That article was analogous to the original Article 27 of the Law of 2 August 2002, with the exception of the reference to Article 169. The entry into force of Article 172, however, was only to take place upon the entry into force of Articles 26 and 27 of the Law of 2 August 2002.

Notwithstanding the repeal of Article 172, most provisions of this article are retained.

Thus, the intention is to specify the compliance provisions of Article 172, § 2 in the implementing rules of Article 153, § 4, first paragraph.

The other provisions of Article 172 that were retained as a result of the transposition are henceforth contained in Article 169, § 3.

Art. 111. This article adapts the references of Article 173.

Art. 112. This article adds a new paragraph to Article 197 which aims to sanction the systematic and serious breach of the rules of conduct via the exceptional measures provided for in paragraphs 1 to 5 of Article 197.

Art. 116. This article aims to repeal Article 241 of the Law, which postponed the entry into force of certain articles of the Law until the day of entry into force of Articles 26 and 27 of the Law of 2 August 2002. This repeal is necessary since both the relevant provisions of the Law of 2 August 2002 and those of the Law of 20 July 2004 have been modified as a result of the transposition of the Directive.

CHAPTER VI. — Amendments to the Law of 22 March 2006 on intermediation in banking and investment services and the distribution of financial instruments

Art. 117. This article amends Article 4 of the Law of 22 March 2006, hereinafter "the Law". It concerns an adaptation of a reference to the Law of 6 April 1995.

Art. 118. The amendment to Article 5 of the same Law aims, on the one hand, to transpose Article 32, § 2, last paragraph, of MiFID. It should be noted that for agents established in Belgium acting for EU investment firms, registration in the register of intermediaries must be combined with compliance with the requirements applicable to branches of foreign investment firms. The amendment aims, on the other hand, to transpose Article 23, § 3, second paragraph, of MiFID.

Art. 119. This article amends Article 11 of the Law; the amendment concerns an adaptation to the new terminology and definitions inserted in the Law of 6 April 1995.

Art. 120. This article amends Article 12, § 1, second paragraph of the Law. The amendment makes it possible henceforth for a broker in banking and investment services to provide investment advice services for own account. This provision constitutes an application of Article 3 of the Directive, which offers Member States the possibility to exempt from the application of the Directive persons who:
— are not allowed to hold funds and/or securities belonging to their clients and therefore may never be in a debtor position vis-à-vis their clients, and — are not allowed to perform investment services, with the exception of receiving and transmitting orders in securities and participation rights in collective investment undertakings and the investment advice provided regarding these financial instruments, and during the performance of that service only transmit orders to licensed institutions, — subject to appropriate national regulation. Such exempted persons do not benefit from the European passport. The article authorizes the King to impose specific organizational rules as well as conduct rules on these brokers. These implementing measures must ensure that brokers in banking and investment services are subject to appropriate conduct rules and organizational rules for investment advice. Thus, coherent rules will be contributed to for the protection of investors for all institutions when they provide investment advice services.

CHAPTER VII. — Amendments to the Law of 16 June 2006 on the public offer of investment instruments and the admission of investment instruments to trading on a regulated market

This chapter (Articles 121 to 124) contains amendments to the prospectus law to take into account the new concepts such as MTF introduced into Belgian financial law following MiFID.

CHAPTER VIII. — Transitional and final provisions

Art. 125 to 128. These provisions regulate the entry into force of the Law. A transitional regime is also introduced for existing regulated markets. This provision aligns with Article 72, paragraph 2, of MiFID.

Below is a table attached with, on the one hand, the provisions of the current draft and, on the other hand, the corresponding Community provisions.

Art. 116. Cet article vise à abroger l’article 241 de la loi, qui a reporté l’entrée en vigueur de certains articles de la loi jusqu’au jour de l’entrée en vigueur des articles 26 et 27 de la loi du 2 août 2002. Cette abrogation est nécessaire puisque tant les dispositions concernées de la loi du 2 août 2002 que celles de la loi du 20 juillet 2004 sont modifiées à la suite de la transposition de la Directive.

CHAPITRE VI. — Modifications à la loi du 22 mars 2006 relative à l’intermédiation en services bancaires et en services d’investissement et à la distribution d’instruments financiers

Art. 117. Cet article modifie l’article 4 de la loi du 22 mars 2006, ci-après « la loi ». Il s’agit d’adapter une référence à la loi du 6 avril 1995.

Art. 118. La modification apportée à l’article 5 de la même loi vise, d’une part, à transposer l’article 32, § 2, dernier alinéa, de la Directive MiFID. Il convient de remarquer que pour les agents établis en Belgique qui agissent pour des entreprises d’investissement de l’UE, l’inscription au registre des intermédiaires doit aller de pair avec le respect des exigences applicables aux succursales d’entreprises d’investissement étrangères. La modification vise, d’autre part, à transposer l’article 23, § 3, alinéa 2 de la MiFID.

Art. 119. Cet article modifie l’article 11 de la loi. La modification concerne une adaptation à la nouvelle terminologie et aux nouvelles définitions introduites dans la loi du 6 avril 1995.

Art. 120. Cet article modifie l’article 12, § 1er, alinéa 2, de la loi. La modification permet désormais à un courtier en services bancaires et en services d’investissement de fournir pour compte propre des services de conseil en investissement. Cette disposition constitue une application de l’article 3 de la Directive, article qui offre aux Etats membres la possibilité d’exempter de l’application de la Directive les personnes qui :
— ne sont pas autorisées à détenir des fonds ou des titres de clients et qui, pour cette raison, ne risquent à aucun moment d’être débitrices vis-à-vis de ceux-ci, et — ne sont pas autorisées à fournir des services d’investissement à l’exception de la réception et de la transmission des ordres concernant des valeurs mobilières et des parts d’organismes de placement collectif ainsi que de la fourniture de conseil en investissement en liaison avec ces instruments financiers, et qui, dans le cadre de la fourniture de ce service, sont autorisées à transmettre les ordres uniquement aux établissements agréés, — à condition que leurs activités soient soumises à un réglementation nationale appropriée. Ces personnes exemptées ne bénéficient pas du passeport européen. L’article habilite le Roi à imposer des règles d’organisation spécifiques ainsi que des règles de conduite à ces courtiers. Ces mesures d’exécution devront garantir que les courtiers en services bancaires et en services d’investissement soient soumis à des règles de conduite et des règles organisationnelles appropriées pour le conseil en investissement. Cela contribuera à maintenir des règles cohérentes en matière de protection des investisseurs pour tous les établissements fournissant des services de conseil en investissement.

CHAPITRE VII. — Modifications de la loi du 16 juin 2006 relative aux offres publiques d’instruments de placement et aux admissions d’instruments de placement à la négociation sur des marchés réglementés

Ce chapitre (articles 121 à 124) contient des modifications à la loi « prospectus » afin de tenir compte des nouvelles notions - telles que MTF - qu’introduit en droit financier belge la transposition de la Directive MiFID.

CHAPITRE VIII. — Dispositions transitoires et finales

Art. 125 à 128. Ces dispositions règlent l’entrée en vigueur de la loi. Elles introduisent par ailleurs un régime transitoire pour les marchés réglementés existants. Cette disposition se situe dans le droit fil de l’article 72, paragraphe 2, de la Directive MiFID.
Le tableau repris ci-dessous met en correspondance les dispositions du présent projet et les dispositions communautaires qu’elles transposent.

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Tableau de transposition : Projet d’AR visant à transposer la Directive européenne concernant les marchés d’instruments financiers/Dispositions de droit européen (il est renvoyé à la Directive 2004/39/CE, sauf autre mention)/Omzettingstabel : Ontwerp van KB tot omzetting van de Europese Richtlijn betreffende markten in financiële instrumenten/ Europeesrechtelijke bepalingen (verwijzingen zijn naar de Richtlijn 2004/39/EG, tenzij anders gepreciseerd) Art. 1 - Art. 2 Art. 4 Art. 3 Art. 4 Art. 4 Art. 4 Art. 5 Terminologie Art. 6 Art 36 Art 47 Art. 7 Art 39 e) Art. 8 Art 36 Art. 39 d) Art. 9 Art. 33, 42, 43 en/et 62 lid/al 2 en/et 3 Art. 10 Art. 40 Art. 11 Art 40 en/et 41 Art 18 Richtlijn 2001/34/EG/ Directive 2001/34/CE Art. 12 Art. 25 lid/al 3 tot/à 6 Art 37 tot/à 30 Art 44 en/et 45 Art 13 lid/al 4 Verordening/ Règlement 1287/2006 Art. 13 Opgeheven bepaling strijdig met MiFID/disposition abrogée, contraire à la MiFID Art. 14 Terminologie Art. 15 Terminologie Art. 16 Art. 14 Art 31 en/et 32 Art 50 en/et 51 Art 62 lid/al 3 en/et 4 Art. 17 Art. 37, 39 en/et 50 Art. 18 Art. 37 Art. 19 Art. 38 Art. 20 Art. 34 en/et 35 Art 46 Art 2 lid/al 1, g) Art. 21 Art 2 lid/al 1, g), 13, lid/al 9, 14 lid/al 3,19, 21, 25 lid/al 1, 42 lid/al 4 en/et 66 Art. 22 Art. 19, 20 en/et 22 lid/al 1 Artikel 35, lid 5 en/et 41 Richtlijn/Directive 2006/73 Art. 23 Art. 21 Art. 24 Art. 25 lid/al 1 Art. 25 Verwijzingen/Références Art. 26 Art 13, lid/al 7 Art. 27 Verordening/Règlement 1287/2006 Art. 28 Verplaatst artikel/Article déplacé Art. 29 Art. 56 lid/al 1 en/et 2 Art. 30 Art. 56 tot/à 59 Art. 16 Richtlijn 2003/6/EG/Directive 2003/6/CE Art. 31 Art. 56 § 1, lid/al 3 Art. 32 Terminologie Art. 33 Voortaan geregeld in artikelen 26 tot 28bis wet 2.08.2002/Réglé dorénavant par les articles 26 à 28bis Art. 34 Art. 4, lid/al 1, 1) Art 5 lid/al 1 tot/à 3 Art. 35 Art. 2 Art. 36 Verwijzing/renvoi Art. 37 Art. 4 Art 52 Richtlijn/Directive 2006/73 Art. 38 Art. 5 en/et 6 lid/al 1 29306 MONITEUR BELGE — 31.05.2007 — BELGISCH STAATSBLAD

Art. 39 Art. 6 en/et 7
Art. 40 Art. 6 lid/al 1 en/et 7 lid/al 3
Art. 41 Art. 6 lid/al 1 en/et 7 lid/al 1
Art. 42 Art. 5 lid/al 3
Art. 43 Art. 15
Art. 44 Art. 5 lid/al 1
Art. 45 Art. 12
Art. 46 Art. 10
Art. 47 Art. 9
Art. 48 Art. 13 en/et 18
Art 15 lid/al 3 en/et 51 lid/al 3 Richtlijn/Directive 2006/73/CE Art. 49 Art. 11 Art. 50 Art. 12 en/et 16 lid/al 1 Art. 51 Art. 10 Art. 52 Art. 15 Art. 53 Verwijzing/renvoi Art. 54 Art. 13 en/et 18 Art. 55 Terminologie Art. 56 Art. 13 lid/al 8 Art 18 lid/al 1 Richtlijn/Directive 2006/73/CE Art. 57 Art. 13 lid/al 7 Art 19 lid/al 1 Richtlijn/Directive 2006/73/CE Art. 58 Art 16 lid/al 1, a) tot/à c) Richtlijn/Directive 2006/73/CE Art. 59 Verwijzing/Renvoi Art. 60 Art. 23 Art. 61 Art 13 en/et 19 Art. 62 Art 16 lid/al 1 en/et 2 Art. 63 Art. 4 lid/al 1, 7) Art 21 lid/al 4 Verordening/Règlement 1287/2006 Art. 64 Art. 32 Art. 65 Art. 32 Art. 66 Verwijzing/renvoi Art. 67 Art. 32 Art. 68 Art. 31 Art. 69 Art. 55 Art 20 Richtlijn/Directive 2006/73 Art. 70 Art. 50, lid/al 2, m) Art. 71 Art. 8 en/et 50 Art. 72 Verwijzing/renvoi Art. 73 Verwijzing/renvoi Art. 74 Verwijzing/renvoi Art. 75 Art. 13 lid/al 7 en/et 51 Art 19 lid/al 1 Art. 76 Art 16 lid/al 2 en/et 71 Art. 77 Opheffingen/abrogations Art. 78 Art. 31 en/et 32 Art. 79 Opheffing/abrogation Art. 80 Opheffing/abrogation Art. 81 Opheffing/abrogation Art. 82 Art. 4 Art. 83 Art. 13 en/et 18 Art 15 lid/al 3 en/et 51 lid/al 3 Richtlijn/Directive 2006/73/CE Art. 84 Art. 4 lid/al 1, 7) Art 21 lid/al 4 Verordening/ Règlement 1287/2006 MONITEUR BELGE — 31.05.2007 — BELGISCH STAATSBLAD 29307

Art. 85 Art. 55
Art 20 Richtlijn/Directive 2006/73
Art. 86 Art. 8 en/et 50
Art. 87 Art 61, lid/al 1 en/et 2
Art. 88 Terminologie
Art 4
Art. 89 Terminologie
Art. 90 Terminologie
Art. 91 Verwijzing/renvoi
Art. 92 Art. 66
Art. 93 Terminologie
Art. 94 Aanpassing ingevolge opheffing artikel 36 wet 6/04.1995/Adaptation suite à l’abrogation de l’article 36 loi 6.04.1995 Art. 95 Opheffing ingevolge wijziging artikel 27 wet 2.08.2002/Abrogation suite à l’adaptation de l’article 27 loi 2.08.2002 Art. 96 Verwijzing/renvoi Art. 97 Terminologie Art. 98 Terminologie Art. 99 Terminologie Art. 100 Terminologie Art. 101 Terminologie Art. 102 Terminologie Art. 103 Terminologie Art. 104 Terminologie Art. 105 Terminologie Art. 106 Verwijzingen/renvois Art. 107 Art 66 Herschikking en precisering van de bestaande voorschriften/réaménagement et formulation plus précise des dispositions existantes Art. 108 Art 13 lid/al 5 Art. 109 Art. 66 Aanpassing ingevolge opheffing artikel 36 wet 6/04.1995/Adaptation suite à l’abrogation de l’article 36 loi 6.04.1995 Art. 110 Opheffing Art. 111 Verwijzing/renvoi Art. 112 Art. 66 Art. 113 Terminologie Art. 114 Terminologie Art. 115 Verwijzing/renvoi Art. 116 Opheffing Art. 117 Verwijzing/renvoi Art. 118 Art 32, § 2, lid/al 2 Art 23, § 3, lid/al 2 Art. 119 Terminologie Art. 120 Art. 3 Art. 121 Terminologie Art. 122 Terminologie Art. 123 Terminologie Art. 124 Terminologie Art. 125 Art 72, lid/al 2 Art. 126 - Art. 127 Art. 70 Art. 128 - 29308 MONITEUR BELGE — 31.05.2007 — BELGISCH STAATSBLAD

Richtlijn 2004/39/EG/ Directive 2004/39/CE :
Richtlijn 2004/39/EG van het Europees Parlement en de Raad van 21 april 2004 betreffende markten voor financiële instrumenten, tot wijziging van de Richtlijnen 85/611/EEG en 93/6/EEG van de Raad en van Richtlijn 2000/12/EG van het Europees Parlement en de Raad en houdende intrekking van Richtlijn 93/22/EEG van de Raad/Directive 2004/39/CE du Parlement européen et du Conseil du 21 avril 2004 concernant les marchés d’instruments financiers, modifiant les Directives 85/611/CEE et 93/6/CEE du Conseil et la Directive 2000/12/CE du Parlement européen et du Conseil et abrogeant la Directive 93/22/CEE du Conseil Richtlijn 2006/73/EG/Directive 2006/73/CE :
Richtlijn 2006/73/EG van de Commissie van 10 augustus 2006 tot uitvoering van Richtlijn 2004/39/EG van het Europees Parlement en de Raad wat betreft de door beleggingsondernemingen in acht te nemen organisatorische eisen en voorwaarden voor de bedrijfsuitoefening en wat betreft de definitie van begrippen voor de toepassing van genoemde Richtlijn/Directive 2006/73/CE de la Commission du 10 août 2006 portant mesures d’exécution de la Directive 2004/39/CE du Parlement européen et du Conseil en ce qui concerne les exigences organisationnelles et les conditions d’exercice applicables aux entreprises d’investissement et la définition de certains termes aux fins de ladite Directive Verordening/Règlement 1287/2006 :
Verordening 1287/2006 van de Commissie van 10 augustus 2006 tot uitvoering van Richtlijn 2004/39/EG van het Europees Parlement en de Raad wat de voor beleggingsondernemingen geldende verplichtingen betreffende het bijhouden van gegevens, het melden van transacties, de markttransparantie, de toelating van financiële instrumenten tot handel en de definitie van begrippen voor de toepassing van genoemde Richtlijn betreft/ Règlement n° 1287/2006 de la Commission du 10 août 2006 portant mesures d’exécution de la Directive 2004/39/CE du Parlement européen et du Conseil en ce qui concerne les obligations des entreprises d’investissement en matière d’enregistrement, le compte rendu des transactions, la transparence du marché, l’admission des instruments financiers à la négociation et la définition de termes aux fins de ladite Directive Richtlijn 2001/34/EG/ Directive 2001/34/CE :
Richtlijn 2001/34/EG van het Europees Parlement en de Raad van 28 mei 2001 betreffende de toelating van effecten tot de officiële notering aan een effectenbeurs en de informatie die over deze effecten moet worden gepubliceerd/Directive 2001/34/CE du Parlement européen et du Conseil du 28 mai 2001 concernant l’admission de valeurs mobilières à la cote officielle et l’information à publier sur ces valeurs Richtlijn 2003/6/EG/ Directive 2003/6/CE :
Richtlijn 2003/6/EG van het Europees Parlement en de Raad van 28 januari 2003 betreffende handel met voorwetenschap en marktmanipulatie (marktmisbruik)/Directive 2003/6/CE du Parlement européen et du Conseil du 28 janvier 2003 sur les opérations d’initiés et les manipulations de marché (abus de marché) Wet/Loi 2.08.2002: de wet van 2 augustus 2002 betreffende het toezicht op de financiële sector en de financiële diensten/ la loi du 2 août 2002 relative à la surveillance du secteur financier et aux services financiers Wet/Loi 6.04.1995 : de wet van 6 april 1995 inzake het statuut van en het toezicht op de beleggingsondernemingen /la loi du 6 avril 1995 relative au statut et au contrôle des entreprises d’investissement

Ik heb de eer te zijn,
Sire, van Uwe Majesteit,
De zeer eerbiedige en zeer getrouwe dienaar,
De Vice-Eerste Minister en Minister van Financiën, D. REYNDERS

ADVIES 42.812/2 VAN 18 APRIL 2007
VAN DE AFDELING VAN DE RAAD VAN STATE

De RAAD VAN STATE, afdeling wetgeving, tweede kamer, op 12 april 2007 door de Vice-Eerste Minister en Minister van Financiën verzocht hem, binnen een termijn van vijf werkdagen, van advies te dienen over een ontwerp van koninklijk besluit ″tot omzetting van de Europese Richtlijn betreffende de markten voor financiële instrumenten″, heeft het volgende advies gegeven :
Volgens artikel 84, § 1, eerste lid, 2°, van de gecoördineerde wetten op de Raad van State, ingevoegd bij de wet van 4 augustus 1996, en vervangen bij de wet van 2 april 2003, moeten in de adviesaanvraag in het bijzonder de redenen worden aangegeven tot staving van het spoedeisende karakter ervan.
In het onderhavige geval luidt de brief met de adviesaanvraag als volgt :
« En effet, l’urgence est motivée par le fait :
— que la Directive MiFID 2004/39/CE et la Directive d’exécution 2006/73/CE doivent être transposées en droit belge; — que la transposition des deux Directives doit avoir lieu simultanément dans la mesure où leurs dispositions sont étroitement liées; J’ai l’honneur d’être, Sire, de Votre Majesté Le très respectueux et très fidèle serviteur, Le Vice-Premier Ministre et Ministre des Finances, D. REYNDERS

AVIS 42.812/2 DU 18 AVRIL 2007
DE LA SECTION DE LEGISLATION DU CONSEIL D’ETAT

Le CONSEIL D’ETAT, section de législation, deuxième chambre, saisi par le Vice-Premier Ministre et Ministre des Finances, le 12 avril 2007, d’une demande d’avis, dans un délai de cinq jours ouvrables, sur un projet d’arrêté royal ″visant à transposer la Directive européenne concernant les marchés d’instruments financiers″, a donné l’avis suivant :
Suivant l’article 84, § 1er, alinéa 1er, 2°, des lois coordonnées sur le Conseil d’Etat, inséré par la loi du 4 août 1996, et remplacé par la loi du 2 avril 2003, la demande d’avis doit spécialement indiquer les motifs qui en justifient le caractère urgent.
La lettre s’exprime en ces termes :
« En effet, l’urgence est motivée par le fait :
— que la Directive MiFID 2004/39/CE et la Directive d’exécution 2006/73/CE doivent être transposées en droit belge; — que la transposition des deux Directives doit avoir lieu simultanément dans la mesure où leurs dispositions sont étroitement liées; MONITEUR BELGE — 31.05.2007 — BELGISCH STAATSBLAD 29309

— que ces Directives ne laissent qu’un délai limité pour la transposition en droit belge puisque la Directive d’exécution n’a été publiée qu’en septembre 2006 et que la date de transposition de celle-ci a été fixée au 31 janvier 2007; — que pour permettre aux établissements fournissant des services d’investissement ainsi qu’aux marchés réglementés de se préparer aux nouvelles règles, les Directives ont fixé l’entrée en vigueur des dispositions de transposition au 1er novembre 2007; — que la date de transposition des Directives est dépassée; — que pour accélérer leur transposition en droit belge, il est fait usage d’habilitations légales qui confèrent au Roi le pouvoir de procéder aux modifications législatives requises; que ces habilitations doivent être utilisées au plus vite pour ne pas en perdre l’utilité; — que le présent arrêté vise à opérer les modifications législatives requises pour assurer la transposition des Directives précitées; — que, sans le bénéfice de l’urgence, le risque est grand que les nouvelles règles soient adoptées avec un retard considérable; — que le présent arrêté doit être adopté sans délai étant donné que tout report compliquerait sérieusement la mise en oeuvre, à temps et correctement, de la nouvelle réglementation par le secteur financier dans la mesure où celui-ci doit pouvoir prendre connaissance de cette nouvelle réglementation pour s’y conformer sur le plan de la classification, des profils et de la documentation des clients, ainsi que sur le plan des politiques suivies et des documents reprenant ces politiques, des systèmes informatiques et des structures organisationnelles; que les participants du marché ne peuvent en effet arrêter une décision définitive quant aux étapes opérationnelles nécessaires qu’une fois les dispositions de transposition adoptées; — qu’il convient d’éviter que les activités transfrontalières du secteur financier belge soient entravées et que le secteur subisse un préjudice du fait que le passeport européen des établissements belges serait remis en question pour cause de respect inadéquat de la nouvelle réglementation, lequel serait à son tour causé par l’adoption et la publication tardives des dispositions des transpositions; — qu’il convient également d’éviter que le renforcement de la protection des investisseurs, visé par les Directives précitées, ne soit pas totalement garanti au 1er novembre 2007 au motif que les établissements financiers ne seraient pas en mesure de respecter leurs nouvelles obligations à temps correctement en raison de leur promulgation tardive; — qu’il est, enfin, impératif d’adopter le présent arrêté sans délai pour éviter que les avantages du marché des capitaux plus intégrés, résultant de la MiFID, profitent dans une moindre mesure à l’économie belge, ce qui affecterait sa compétitivité. »

Since the request for advice was submitted on the basis of Article 84, § 1, first paragraph, 2°, of the coordinated laws on the Council of State, as replaced by the law of 2 April 2003, the Legislation Section, in accordance with Article 84, § 3, of the aforementioned coordinated laws, limits its examination to the legal basis of the draft, the competence of the author of the act, and the prior formal requirements to be fulfilled.

With regard to these three points, the draft gives rise to the following comments.

Preliminary Observation

The technical nature of the draft, its scope, and the legal questions it raises, particularly regarding its compatibility with European law, deserved an examination by the Legislation Section of the Council of State within a longer period than that set by the requester, a period limited to five working days pursuant to Article 84, § 1, first paragraph, 2°, of the coordinated laws on the Council of State.

The Legislation Section did not have the time necessary to conduct a thorough examination of the draft, not even regarding the points listed in Article 84, § 3, first paragraph, of the coordinated laws. From the fact that no comment is made in this opinion regarding a specific provision, it cannot necessarily be concluded that there is nothing to object to, nor that a comment, when made, is exhaustive.

It is under this reservation that this opinion is issued.

— that these Directives leave only a limited time for transposition into Belgian law since the Implementing Directive was not published until September 2006 and the transposition date for it was set for 31 January 2007; — that to allow establishments providing investment services as well as regulated markets to prepare for the new rules, the Directives set the entry into force of the transposition provisions for 1 November 2007; — that the transposition date of the Directives has been exceeded; — that to accelerate their transposition into Belgian law, legal authorizations are used which confer upon the King the power to carry out the required legislative modifications; that these authorizations must be used as quickly as possible so as not to lose their usefulness; — that this decree aims to carry out the legislative modifications required to ensure the transposition of the aforementioned Directives; — that without the benefit of urgency, there is a great risk that the new rules will be adopted with considerable delay; — that this decree must be adopted without delay given that any postponement would seriously complicate the implementation, in a timely and correct manner, of the new regulation by the financial sector, insofar as the latter must be able to familiarize itself with this new regulation to comply with it regarding client classification, profiles, and documentation, as well as regarding the policies followed and the documents incorporating these policies, IT systems, and organizational structures; market participants cannot indeed make a final decision regarding the operational steps necessary only after the transposition provisions are adopted; — it is appropriate to avoid that cross-border activities of the Belgian financial sector are hindered and that the sector suffers prejudice because the European passport of Belgian establishments would be called into question due to inadequate respect for the new regulation, which would in turn be caused by the late adoption and publication of the transposition provisions; — it is also appropriate to avoid that the strengthening of investor protection, aimed at by the aforementioned Directives, is not fully guaranteed by 1 November 2007 on the grounds that financial establishments would not be able to respect their new obligations in a timely and correct manner due to their late promulgation; — finally, it is imperative to adopt this decree without delay to avoid that the advantages of the more integrated capital markets resulting from MiFID benefit the Belgian economy to a lesser extent, which would affect its competitiveness.

As the request for advice is introduced on the basis of Article 84, § 1, first paragraph, 2°, of the coordinated laws on the Council of State, as replaced by the law of 2 April 2003, the Legislation Section limits its examination to the legal basis of the draft, the competence of the author of the act, and the fulfillment of prior formalities, in accordance with Article 84, § 3, of the aforementioned coordinated laws.

On these three points, the draft calls for the following observations.

Preliminary Observation

The technical nature of the draft, its scope, and the legal questions it raises, particularly regarding its compatibility with European law, would have deserved an examination by the Legislation Section of the Council of State within a longer period than that, limited to five working days, fixed by the requester of the opinion pursuant to Article 84, § 1, first paragraph, 2°, of the coordinated laws on the Council of State.

The Legislation Section did not have the time necessary to conduct a thorough examination of the draft, not even regarding the elements listed in Article 84, § 3, first paragraph, of these coordinated laws. One cannot therefore necessarily deduce from the absence of observation regarding a provision in this opinion that there would be nothing to say about it, nor that, when an observation is formulated, it is exhaustive.

It is under this reservation that this opinion is issued.

29310 MONITEUR BELGE — 31.05.2007 — BELGISCH STAATSBLAD

General Comments

1. The draft royal decree submitted for advice aims to transpose two European Directives (1) and to make the adaptations required pursuant to Commission Regulation No. 1287/2006 of 10 August 2006 implementing Directive 2004/39/EC of the European Parliament and of the Council concerning the obligations of investment firms regarding record-keeping, transaction reporting, market transparency, the admission of financial instruments to trading, and the definition of terms for the application of the said Directive (hereinafter "Regulation 1287/2006").

The author of the draft relies on several legal provisions empowering the King to transpose European legal norms and, in this context, to supplement, replace, repeal, or coordinate the existing legal provisions, as well as to determine the measures and administrative and criminal sanctions applicable when the rules are not observed.

These are:
— Article 51 of the law of 1 April 2007 on public takeover bids; — Article 146 of the law of 2 August 2002 concerning supervision of the financial sector and financial services; — Article 230 of the law of 20 July 2004 concerning certain forms of collective management of investment portfolios.

These various provisions, however, stipulate that the royal decree established on their basis must be submitted to Parliament for ratification.

2.1. The Council of State notes that in some cases the draft text appears to go beyond the Directives and the regulation it must transpose or execute in Belgian law.

This is the case with Articles 2, 21, and 45 of the draft (draft Articles 2, first paragraph, 1°, k), 26, first paragraph, 6°, and 58), which will be examined in the context of the specific comments.

Since it cannot be indicated which provision of the Directive or the regulation is being transposed or executed, these articles must be omitted, even if they merely reproduce existing law (2).

2.2. The attention of the author of the draft is drawn to the necessity to strictly adhere to the implementation of the legal authorizations granted to the King (by the aforementioned laws of 2 August 2002, 20 July 2004, and 1 April 2007, mentioned in the preamble), which are limited to measures that are "necessary" to transpose the "mandatory" provisions of the relevant European texts.

Since the author of the draft does not clearly and accurately specify which mandatory provisions of European law must be chosen for the purpose of their transposition, provisions that go beyond the authorization granted to the King should be removed from the draft text.

The articles that raise problems in light of the foregoing are mentioned in the context of the specific comments.

3. The request for advice is accompanied by two tables relating the provisions of the Directives to those of the draft transposing them. It is useful that these tables, which facilitate the examination of the conformity of the draft text with European law, be attached to the report to the King. They must also be brought to the attention of the Chambers when the royal decree is submitted to them for ratification.

Specific Comments

Preamble

The two Directives mentioned in the first and third paragraphs of the preamble do not constitute the legal basis of the draft decree, so they must be omitted. The same applies to the regulation referred to in the second paragraph, which implements the Directive mentioned in the first paragraph.

MONITEUR BELGE — 31.05.2007 — BELGISCH STAATSBLAD 29311

Enacting Provisions

Article 2

The draft Article 2, 1°, k), goes beyond Article 4, paragraph 1, 17°, of the MiFID Directive, which provides a exhaustive list of what is to be understood as "financial instruments."

It must therefore be omitted.

Article 12

1. This article aims in particular to supplement Article 9, 2°, of the aforementioned law of 2 August 2002 with the following sentence: "(...) upon the advice of the CBFA, the King may by a decree decided upon in the Council of Ministers prescribe the inclusion, in the manner determined by Him, of client identity in the notifications;"

Article 13, paragraph 4, of Regulation 1287/2006 stipulates the following:

"Member States may also prescribe that a transaction report drawn up in accordance with Article 25, paragraphs 3 and 5, of Directive 2004/39/EC must identify the clients on whose behalf the investment firm executed the transaction in question."

This mere possibility left to Member States by that regulation provision is therefore what the draft sentence intends to empower the King to implement. Article 51, § 1, 3°, of the aforementioned law of 1 April 2007, however, only empowers Him to supplement the law to "take the adaptation measures necessary following Regulation 1287/2006."

Reference is therefore made to General Comment 2.2, all the more so since the provision, by the subject matter it regulates, may infringe upon personal privacy and the observance of Article 22 of the Constitution requires action by the legislator.

2. Article 12 of the draft also aims to supplement Article 9, 3°, of the aforementioned law of 2 August 2002 with a c) regarding: "(...) the publication of market information both before and after trading concerning transactions in financial instruments not admitted to trading on a regulated market, which are admitted to trading on a Belgian MTF, whether or not executed on the MTF."

Since this authorization finds no legal basis in Article 25, paragraph 3, of the MiFID Directive, since this article only concerns "financial instruments admitted to trading on a regulated market," the Council of State is not clear which other provision of it this additional legal authorization would be one of the "necessary measures to transpose the mandatory provisions resulting from Directive 2004/39/EC" that the King might add to the legislation pursuant to Article 51, § 1, 1°, of the aforementioned law of 1 April 2007.

Reference must therefore be made to General Comment No. 2.2, unless it is clearly and accurately indicated for which mandatory provisions of this Directive the examined authorization should be added to ensure transposition.

Articles 17 and 18

Since the draft Article 17, § 1, 4°, concerns not only "persons who effectively lead the business and operation of the regulated market," as indicated in Article 37 of the MiFID Directive, but also "persons who participate in the management or policy of the company and the group of which they are, where applicable, a part, without participating in the effective management," it does not appear to find justification in the need to transpose some of the mandatory provisions of this Article 37. Reference is therefore made to General Comment No. 2.2. The comment also applies to the draft Article 17bis in Article 18.

The same applies to the draft Article 17, § 1, 5°, insofar as it concerns "the financial situation of the group of which they are, where applicable, a part," which situation has nothing to do with Article 39, f), of the same Directive, as well as for the draft Article 17, § 1, 9°, which does not appear to be required for the transposition of the mandatory repeal provisions of Article 50 of the Directive.

Enacting Provisions

Article 2

The draft Article 2, 1°, k), goes beyond Article 4, paragraph 1, 17°, of the MiFID Directive, which gives an exhaustive list of what is to be understood as "financial instruments."

It must therefore be omitted.

Article 12

This article aims in particular to supplement Article 9, 2°, of the aforementioned law of 2 August 2002 with the following sentence:

"(...) the King may, by a decree decided upon in the Council of Ministers, taken upon the advice of the CBFA, prescribe that the identity of clients be mentioned in the declarations, according to the modalities He determines;"

Article 13, paragraph 4, of Regulation 1287/2006 indeed provides that

"Member States may also require that a report drawn up in accordance with Article 25, paragraphs 3 and 5, of Directive 2004/39/EC identify the clients on whose behalf the investment firm executed the transaction."

It is therefore this simple faculty left to Member States by this regulation provision that the sentence in the draft intends to empower the King to implement. However, Article 51, § 1, 3°, of the aforementioned law of 1 April 2007 only allows Him to thus supplement the law with a view to "taking the necessary adaptation measures following Regulation 1287/2006."

It is therefore referred to General Observation No. 2.2, all the more so since, due to the subject matter regulated by the provision, it is susceptible to infringing upon privacy and to ensure respect for Article 22 of the Constitution, intervention by the legislator is required.

2. The draft Article 12 also aims to supplement Article 9, 3°, of the aforementioned law of 2 August 2002 with a c) regarding the "publication of market information, both prior and subsequent to negotiations, applicable to transactions concerning financial instruments not admitted to trading on a regulated market, but admitted to trading on a Belgian MTF, whether or not these transactions are effected on the MTF in question."

Since this authorization has no basis in Article 25, § 3, of the MiFID Directive, since it only concerns "any financial instrument admitted to trading on a regulated market," the Council of State does not perceive which other of its provisions this additional legal authorization would constitute one of the "necessary measures to transpose the mandatory provisions of Directive 2004/39/EC," which the King would be authorized to add to the legislation pursuant to Article 51, § 1, 1°, of the aforementioned law of 1 April 2007.

Therefore, unless clear and precise indication is given of the mandatory provisions of this Directive whose addition of the examined authorization would be necessary to ensure transposition, reference should be made to General Observation No. 2.2.

Articles 17 and 18

To the extent that it does not only concern "any person effectively managing the activities and operation of a regulated market," as Article 37 of the MiFID Directive states, but also "persons who take part in the administration or management of the company and the group of which it is, where applicable, a part, without participating in their effective management," the draft Article 17, § 1, 4°, does not appear justified by the necessity to transpose some of the mandatory provisions of this Article 37. It is therefore referred to General Observation No. 2.2. The observation also applies to the draft Article 17bis in Article 18.

The same applies to the draft Article 17, § 1, 5°, insofar as it concerns "the financial situation of the group of which it is, where applicable, a part," which is unrelated to Article 39, f), of the same Directive, as well as for the draft Article 17, § 1, 9°, which does not seem required for the transposition of the mandatory provisions of its Article 50.

29312 MONITEUR BELGE — 31.05.2007 — BELGISCH STAATSBLAD

Article 21

1. Paragraph 4 of Article 26, in draft, transposes Article 42, paragraph 4, of the MiFID Directive, which, however, only concerns transactions on a regulated market. As far as it also targets "MTFs", reference should be made to general observation no. 2.2.
2. Article 21 replaces Article 26 of the aforementioned Law of 2 August 2002.
   Paragraph 6 of Article 26, paragraph 1, in draft, provides that the King may, on the advice of the Banking, Finance and Insurance Commission, hereinafter referred to as the "CBFA", subject "other institutions (which He designates on the advice of the Banking, Finance and Insurance Commission, hereinafter referred to as the "CBFA")", where appropriate, to the business conduct conditions indicated or adapted by Him under and by virtue of Articles 27, 28 and 28bis. The author of the draft should justify this extension insofar as the MiFID Directive apparently does not contain such a possibility and limits itself to an exhaustive list.

Article 29

1. The paragraph in draft contained in item 1° does not appear to transpose any of the mandatory provisions of Article 56 of the MiFID Directive. Reference should therefore be made to general observation no. 2.2.
2. In item 2° of Article 29 of the draft, the words "significant interest" are used in the draft paragraph 4 without being further defined. Since this criterion is decisive for the establishment of cooperation arrangements by the CBFA, these words should be better defined, possibly by reference, in the operative part, to Article 16 of Regulation 1287/2006, as mentioned in the report to the King.

Articles 38, 42, 44 and 45
The wording of the draft article contained in Article 38 does not appear to be the result of modifications necessary to bring about the transposition of Article 5, paragraph 1, and Article 6, paragraph 1, of the MiFID Directive, so that the envisaged modifications regarding the types of licenses and the services that may be provided on that basis as a "portfolio management and investment advice company" apparently lack sufficient legal basis. Reference is therefore made to general observation no. 2.2. This observation also applies to Articles 42 and 44, 2°, 4° and 5°. In light of the foregoing and given the short time limit set for the examination of the request for advice, the Council of State has not been able to ensure that the modifications to Article 58, resulting from its new wording prescribed in Article 45 of the draft, are necessary for the transposition of mandatory provisions of the aforementioned Directive, in particular Article 12 thereof, as well as for meeting the requirements imposed by the provisions of European law referred to therein.

Article 47
Paragraph 3 of the draft Article 60 apparently has nothing to do with Article 9 of the MiFID Directive. Reference is made to general observation no. 2.2.

Article 48
The draft Article 62bis appears to contain provisions that are not all necessary for the transposition of the mandatory provisions of the MiFID Directive, for the implementation of which that article is intended. Thus, in particular, paragraph 8 constitutes the exercise of a mere right granted to Member States by Article 51, paragraph 4, of Directive 2006/73/EC. Reference should therefore be made to general observation no. 2.2, all the more so since paragraph 8, according to which the recording of telephone conversations or electronic communications relating to client orders in financial instruments may be regulated by Royal Decree, concerns a matter that may entail an infringement of privacy; now, to ensure compliance with Article 22 of the Constitution, any exception to the principle of protection of privacy must be brought about by the legislator. In any case, for the same reasons, the regulation of this matter cannot be entrusted to the CBFA, as provided for in paragraph 9.

Article 49
Article 49 ensures the transposition of Article 11 of the MiFID Directive, which only concerns "any entity applying for a license as an investment firm". Article 65, in turn, refers to "investment firms as well as other companies or persons designated by the King". As far as they do not apply for a license as an investment firm, reference is made to general observation no. 2.2.

Articles 61, 70 and 76
These articles give rise to the same comment as that made regarding Article 38.

Article 62
Paragraph 2 of Article 81, in draft, provides that investment firms to which a license has been granted "must inform the Banking, Finance and Insurance Commission of any significant modification regarding the conditions for the initial grant of the license", which gives the impression that modifications of minor importance do not need to be communicated, while the report to the King indicates that under the new article "the institution is required to submit modifications to the legal license conditions to the CBFA". This discrepancy must be remedied.

Article 78
Article 78 of the draft replaces Article 168 of the Law of 6 April 1995 on the status and supervision of investment firms, intermediaries and investment advisors.
As drafted, the text gives rise to two questions. First, is the text to be understood as meaning that, if the investment firm provided services or activities in one or more Member States of the European Economic Area before 1 November 2007, it may continue them even if it has not obtained a license, provided that it makes the required notification to the CBFA before 31 January 2008? Second, is the continuation of the activities and services of this type of investment firm limited in time, following the example of what is provided for in the new Article 163, §§ 3 and 4, namely until 31 March 2008?

Article 83

1. Article 83 gives rise to the same comment as that made regarding Article 48.
2. This provision provides that Article 20bis is inserted into the Law of 22 March 1993 on the status and supervision of credit institutions, which provides, in particular in paragraph 4, third paragraph, that the CBFA "publishes a policy statement regarding the outsourcing of portfolio management services for non-professional clients".
   In the French text, the reference to "its outsourcing policy" is ambiguous. It is obviously about the policy of the credit institution and not that of the CBFA, which impression the text may convey.
   If, on the other hand, it were about the policy of the CBFA itself, the text would give rise to the following comment: although the CBFA can give a further definition of the rules and the resulting obligations in many areas (see for example the draft Article 20bis, § 1, third paragraph, and § 9) and by that fact alone can make compliance with them obligatory, in the present case it would only publish a statement, from which it must be deduced that it has an indicative value and no binding value. The author of the draft should explain this reduction in the protection of the clients of the credit institutions regarding the outsourcing of portfolio management services. The operative part should be revised so that it becomes clearer and the report to the King should be supplemented.

Article 93
Reference is made to the comment made regarding Article 38.

Article 107
The draft Article 153 apparently goes beyond the legal authorization on the basis of which the adjustments required by the mandatory provisions of Articles 12, 13, 19 and 66 of the MiFID Directive may be made.
Reference is made to general observation no. 2.2.

The chamber was composed of
Mr Y. KREINS, chamber president,
Mr P. VANDERNOOT,
Ms M. BAGUET, State Councillor, assessor of the legislation section, Mr G. KEUTGEN, State Councillor, assessor of the legislation section, Ms B. VIGNERON, clerk.
The report was presented by Mr J.-L. PAQUET, first auditor.
The agreement between the French and Dutch texts was reviewed under the supervision of Mr P. VANDERNOOT.
The Clerk, The President,
B. VIGNERON Y. KREINS

Notes
(1) This concerns:
— Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments, amending Council Directives 85/611/EEC and 93/6/EEC and Directive 2000/12/EC of the European Parliament and of the Council and repealing Council Directive 93/22/EEC (hereinafter referred to as "MiFID Directive"); — Commission Directive 2006/73/EC of 10 August 2006 implementing Directive 2004/39/EC of the European Parliament and of the Council as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive. (2) Although such a procedure makes it possible, as in this case, to conceive of a global reform that must respond to requirements of consistency and readability, it has the effect of providing for a new deadline to appeal against the provisions thus issued, including the aspects of these provisions that have not undergone any fundamental change.

27 APRIL 2007. — Royal Decree on the transposition of the European Directive concerning markets in financial instruments

ALBERT II, King of the Belgians,
To all, present and to come, Greeting.
Having regard to the Law of 2 August 2002 on the supervision of the financial sector and financial services, in particular Article 146, replaced by the Law of 14 February 2005; Having regard to the Law of 20 July 2004 on certain forms of collective management of investment portfolios, in particular Article 230, § 2, amended by the Law of 16 June 2006; Having regard to the Law of 1 April 2007 on public takeover bids, in particular Articles 51 and 77; Having regard to the opinion of the Banking, Finance and Insurance Commission, given on 29 January and 6 February 2007; Having regard to the opinion of the Inspector of Finances, given on 14 March 2007; Having regard to the agreement of Our Minister of Budget of 16 March 2007; Having regard to the request for urgent treatment, motivated by the fact — that the MiFID Directive 2004/39/EC and the implementing Directive 2006/73/EC must be transposed into Belgian law; — that the transposition of both Directives must take place simultaneously because of their interconnection; — that the Directives only allow a limited period for transposition into Belgian law since the implementing Directive only has

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In September 2006, it was announced that the transposition date was set for 31 January 2007; that in order to allow the institutions providing investment services as well as the regulated markets to prepare for the new rules, the Directives set the entry into force of the transposition provisions to 1 November 2007;

— that the transposition date of the Directives has passed;

— that in order to accelerate the transposition into Belgian law, use is made of legal authorizations that grant the King the power to make the necessary legislative changes; that this authorization must be used as soon as possible so as not to lose its usefulness;

— that the present decree aims to introduce the legislative changes required for the transposition of the aforementioned Directives;

— that without urgent treatment, there is a significant risk that the new rules will only be approved with considerable delay;

— that this decree must be adopted without delay, since any delay would seriously hinder the timely and correct implementation of the new regulations by the financial sector, insofar as the financial sector must be able to take note of the new regulations to comply with them in terms of client classification, profiles and documentation, policies and documents, IT systems and organizational structures; market participants can indeed only make definitive decisions regarding the required operational steps once the final transposition provisions have been adopted;

— that it must be avoided that the cross-border activity of the Belgian financial sector is hindered and that the sector suffers damage because the European passport of Belgian institutions would be called into question due to insufficient compliance with the new regulations, which in turn would be caused by the late approval and publication of the transposition provisions;

— that it must also be avoided that the strengthening of investor protection provided for by the Directives is not fully guaranteed on 1 November 2007, insofar as financial institutions cannot comply with their new obligations in a timely and correct manner due to their late approval;

— that finally, this decree must be adopted without delay to avoid that the benefits of a more integrated capital market resulting from MiFID would benefit the Belgian economy less, which could affect its competitive position;

Having regard to Opinion 42.812/2 of the Council of State, given on 18 April 2007, in application of Article 84, § 1, first paragraph, 2°, of the coordinated laws on the Council of State;

On the proposal of Our Minister of Finance and on the advice of Our Ministers assembled in Council,

We have decided and decide:

CHAPTER I. — Introductory provisions

Article 1. This decree aims in particular

1° to transpose Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments, amending Council Directives 85/611/EEC and 93/6/EEC and Directive 2000/12/EC of the European Parliament and of the Council and repealing Council Directive 93/22/EEC;

2° to transpose Commission Directive 2006/73/EC of 10 August 2006 implementing Directive 2004/39/EC of the European Parliament and of the Council as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of the said Directive;

3° to make the adaptation measures required pursuant to Commission Regulation 1287/2006 of 10 August 2006 implementing Directive 2004/39/EC of the European Parliament and of the Council as regards the obligations of investment firms concerning the keeping of records, the reporting of transactions, market transparency, the admission of financial instruments to trading and the definition of terms for the purposes of the said Directive.

It was only published in September 2006 and the transposition date for it was set at 31 January 2007; that in order to allow the establishments providing investment services as well as the regulated markets to prepare for the new rules, the Directives set the entry into force of the transposition provisions to 1 November 2007;

— that the transposition date of the Directives has passed;

— that in order to accelerate their transposition into Belgian law, legal authorizations are used which confer on the King the power to carry out the required legislative modifications; that these authorizations must be used as soon as possible so as not to lose their usefulness;

— that this decree aims to carry out the legislative modifications required to ensure the transposition of the aforementioned Directives;

— that, without the benefit of urgency, there is a great risk that the new rules will be adopted with considerable delay;

— that this decree must be adopted without delay given that any postponement would seriously complicate the implementation, in a timely and correct manner, of the new regulation by the financial sector insofar as it must be able to take knowledge of this new regulation to comply with it in terms of the classification, profiles and documentation of clients, as well as in terms of the policies followed and the documents covering these policies, IT systems and organizational structures; that market participants can indeed only make a final decision regarding the necessary operational steps once the transposition provisions have been adopted;

— that it is appropriate to avoid that the cross-border activities of the Belgian financial sector are hindered and that the sector suffers damage because the European passport of Belgian establishments would be called into question due to inadequate respect for the new regulation, which would in turn be caused by the late adoption and publication of the transposition provisions;

— that it is also appropriate to avoid that the strengthening of investor protection, referred to in the aforementioned Directives, is not totally guaranteed on 1 November 2007 on the grounds that financial establishments would not be able to respect their new obligations in a timely and correct manner due to their late promulgation;

— that it is, finally, imperative to adopt this decree without delay to avoid that the advantages of the more integrated capital market, resulting from MiFID, benefit the Belgian economy to a lesser extent, which would affect its competitiveness;

Having regard to Opinion 42.812/2 of the Council of State, given on 18 April 2007 in application of Article 84, § 1, first paragraph, 2°, of the coordinated laws on the Council of State;

On the proposal of Our Minister of Finance and on the advice of Our Ministers who have deliberated in Council,

We have decided and decide:

CHAPTER I. — Introductory provision

Article 1. This decree aims in particular to

1° ensure the transposition of Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 concerning markets in financial instruments, amending Council Directives 85/611/EEC and 93/6/EEC and Directive 2000/12/EC of the European Parliament and of the Council and repealing Council Directive 93/22/EEC;

2° ensure the transposition of Commission Directive 2006/73/EC of 10 August 2006 implementing Directive 2004/39/EC of the European Parliament and of the Council as regards the organisational requirements and operating conditions applicable to investment firms and the definition of certain terms for the purposes of said Directive;

3° carry out the adaptations required pursuant to Commission Regulation No 1287/2006 of 10 August 2006 implementing Directive 2004/39/EC of the European Parliament and of the Council as regards the obligations of investment firms in terms of recording, the reporting of transactions, market transparency, the admission of financial instruments to trading and the definition of terms for the purposes of said Directive.

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CHAPTER II. — Amendments to the Law of 2 August 2002

Art. 2. In Article 2, first paragraph, of the Law of 2 August 2002 concerning the supervision of the financial sector and financial services, the following changes are made:

1° the 1°, a) to j), is replaced as follows:

« 1° « financial instrument»: any instrument belonging to one of the following categories:

a) securities, as described in the 31°;

b) money market instruments, as described in the 32°;

c) participation rights in collective investment undertakings;

d) options, futures, swaps, interest rate forward contracts and other derivative contracts relating to securities, currencies, interest rates or yields, or other derivative instruments, financial indices or measures and which can be settled by means of physical delivery or in cash;

e) options, futures, swaps, interest rate forward contracts and other derivative contracts relating to commodities and which must or may be settled in cash at the choice of one of the parties (unless the reason is default or another event resulting in the termination of the contract);

f) options, futures, swaps and other derivative contracts relating to commodities and which can be settled by means of physical delivery, provided they are traded on a regulated market and/or an MTF;

g) other options, futures, swaps, forward contracts and other derivative contracts relating to commodities, not mentioned in f), which can be settled by means of physical delivery and are not intended for commercial purposes, and which have the characteristics of other derivative financial instruments, whereby particular account is taken of whether clearing and settlement takes place via recognized clearinghouses and whether there is regular «margin calls» (request for deposit of additional collateral);

h) derivative instruments for the transfer of credit risk;

i) financial contracts for differences («contracts for differences»);

j) options, futures, swaps, interest rate forward contracts and other derivative contracts relating to climate variables, freight rates, emission allowances, inflation rates or other official economic statistics, and which must be settled in cash or, at the request of one of the parties, can be settled in cash (unless the reason is default or another event resulting in the termination of the contract), as well as other derivative contracts relating to assets, rights, obligations, indices and measures other than those mentioned in the 1° which have the characteristics of other derivative financial instruments, whereby particular account is taken of whether they are traded on a regulated market or MTF, whether clearing and settlement takes place via recognized clearinghouses, and also whether there is regular «margin calls» (request for deposit of additional collateral); »;

2° the 4° is replaced as follows:

« 4° «multilateral trading facility (Multilateral trading facility - MTF)»: a multilateral system operated by an investment firm, a credit institution or a market operator that brings together various buying and selling interests of third parties with regard to financial instruments - within this system and according to non-discretionary rules - in such a way that an agreement results in accordance with the provisions of Chapter II of this law or Title II of Directive 2004/39/EC; »;

3° the 5° is replaced as follows:

« 5° «Belgian regulated market»: a multilateral system operated and/or managed by a market operator that brings together or facilitates the bringing together of various buying and selling interests of third parties with regard to financial instruments - within this system and according to the non-discretionary rules of this system - in such a way that an agreement results with regard to financial instruments which are admitted to trading according to the rules and/or systems of the market, and for which a license has been granted and which operates regularly, in accordance with the provisions of Chapter II; »;

4° the 6° is replaced as follows:

« 6° «foreign regulated market»: any market for financial instruments that is organized by a market operator whose State of origin is another member state of the

CHAPTER II. — Modifications of the Law of 2 August 2002

Art. 2. At Article 2, first paragraph, of the Law of 2 August 2002 relating to the supervision of the financial sector and financial services, the following modifications are made:

1° the 1°, a) to j), is replaced by the following provision:

« 1° «financial instrument»: any instrument belonging to one of the following categories:

a) securities, as defined in the 31°;

b) money market instruments, as defined in the 32°;

c) units in collective investment undertakings;

d) option contracts, futures contracts, swap contracts, forward rate agreements and all other derivative contracts relating to securities, currencies, interest rates or yields or other derivative instruments, financial indices or financial measures which can be settled by physical delivery or in cash;

e) option contracts, futures contracts, swap contracts, forward rate agreements and all other derivative contracts relating to commodities which must be settled in cash or may be settled in cash at the request of one of the parties (otherwise than in the event of default or other incident causing termination);

f) option contracts, futures contracts, swap contracts and all other derivative contracts relating to commodities which can be settled by physical delivery, provided that they are traded on a regulated market and/or an MTF;

g) option contracts, futures contracts, swap contracts, forward contracts and all other derivative contracts relating to commodities which can be settled by physical delivery, not mentioned elsewhere in point f) and not intended for commercial purposes, which present the characteristics of other derivative financial instruments taking into account that, in particular, they are cleared and settled through recognized clearing houses or are subject to regular margin calls;

h) derivative instruments serving the transfer of credit risk;

i) financial contracts for differences (financial contracts for differences);

j) option contracts, futures contracts, swap contracts, forward rate agreements and all other derivative contracts relating to climate variables, freight rates, emission allowances or inflation rates or other official economic statistics which must be settled in cash or may be settled in cash at the request of one of the parties (otherwise than in the event of default or other incident causing termination), as well as all other derivative contracts concerning assets, rights, obligations, indices and measures not mentioned elsewhere in the 1°, which present the characteristics of other derivative financial instruments taking into account that, in particular, they are traded on a regulated market or an MTF, are cleared and settled through recognized clearing houses or are subject to regular margin calls; »;

2° the 4° is replaced by the following provision:

« 4° «multilateral trading system (Multilateral trading facility - MTF)»: a multilateral system, operated by an investment firm, a credit institution or a market company, which ensures the meeting - within itself and according to non-discretionary rules - of multiple buying and selling interests expressed by third parties for financial instruments, in a manner which leads to the conclusion of contracts in accordance with the provisions of Chapter II of this law or Title II of Directive 2004/39/EC; »;

3° the 5° is replaced by the following provision:

« 5° «Belgian regulated market»: a multilateral system, operated and/or managed by a market company, which ensures or facilitates the meeting - within itself and according to its non-discretionary rules - of multiple buying and selling interests expressed by third parties for financial instruments, in a manner which leads to the conclusion of contracts relating to financial instruments admitted to trading within the framework of its rules and/or its systems, and which is approved and operates regularly in accordance with the provisions of Chapter II; »;

4° the 6° is replaced by the following provision:

« 6° «foreign regulated market»: any market for financial instruments which is organized by a market company whose State of origin is a member state of the European Economic Area other

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European Economic Area is Belgium, and to which in that Member State a license as a regulated market with application of Title III of Directive 2004/39/EC has been granted; »; 5° the 7° is replaced as follows:
« 7° « market operator »: a person or persons who manage and/or operate the business of a regulated market; the regulated market may itself be the market operator; »; 6° the 8° is replaced as follows:
« 8° « systematic internalizer » or « investment firm with systematic internalization »: an investment firm or credit institution that, in an organized, frequent and systematic manner, executes client orders for its own account outside a regulated market or an MTF; »; 7° the 10°, d), is replaced as follows:
« d) investment firms under Belgian law that hold a license as a stock exchange company or portfolio management and investment advice company; »; 8° the 10°, g), is repealed; 9° the 11° is replaced as follows:
« 11° « home Member State »:
a) in the case of an investment firm:
i) if the investment firm is a natural person, the Member State where that person has its head office; ii) if the investment firm is a legal person, the Member State where its statutory seat is located; iii) if, in accordance with its national legislation, the investment firm does not have a statutory seat, the Member State where its head office is located; b) in the case of a regulated market: the Member State where the statutory seat of the regulated market is located or, if, in accordance with the legislation of that Member State, it does not have a statutory seat, the Member State where the head office of the regulated market is located; »; 10° the 13° is replaced as follows:
« 13° « host Member State »: the Member State that is not the home Member State and where the investment firm has a branch or provides services and/or activities, or the Member State where a regulated market provides appropriate arrangements to facilitate access to trading in its system for members or participants established in that latter Member State remotely; »; 11° the 15° is replaced as follows:
« 15° « limit order »: an order to buy or sell a financial instrument at the specified limit price or a better price and for a specified volume; ».

Art. 3. Article 2, first paragraph, of the same law is supplemented as follows:
« 27° « client »: any natural or legal person for whom an investment firm or credit institution provides investment services and/or ancillary services; 28° « professional client »: a client who meets the criteria determined by the King on the advice of the CBFA; 29° « non-professional client »: a client who is not treated as a professional client; 30° « eligible counterparties »: persons determined by the King on the advice of the CBFA; 31° « securities »: all categories of securities tradable on the capital market, excluding payment instruments, such as:
a) shares in companies and other securities equivalent to shares in companies, partnerships or other entities, as well as share certificates; b) bonds and other debt instruments, as well as certificates concerning such securities; c) any other securities that grant the right to acquire or sell such securities or that give rise to cash settlement, the amount of which is determined on the basis of securities, currencies, interest rates or yields, commodity prices or other indices or benchmarks; 32° « money market instruments »: all categories of instruments usually traded on the money market, such as treasury bills, deposit certificates and commercial paper, excluding payment instruments; 33° « competent authority »: the CBFA or the authority designated by each Member State in application of Article 48 of Directive 2004/39/EC, unless otherwise specified in the Directive; 34° « credit institution »: any institution referred to in Titles II to IV of the law of 22 March 1993 on the status and supervision of credit institutions; 35° « UCITS management company »: a management company within the meaning of Part III of the law of 20 July 2004 concerning certain forms of collective investment in transferable securities; 36° « Directive 2004/39/EC »: Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments, amending Directives 85/611/EEC and 93/6/EEC of the Council and Directive 2000/12/EC of the European Parliament and of the Council and repealing Council Directive 93/22/EEC; 37° « Regulation 1287/2006 »: Commission Regulation (EC) No 1287/2006 of 10 August 2006 implementing Directive 2004/39/EC of the European Parliament and of the Council as regards record-keeping obligations for investment firms, transaction reporting, market transparency, admission of financial instruments to trading and definition of terms for the purposes of the said Directive; 38° « Directive 2006/73/EC »: Commission Directive 2006/73/EC of 10 August 2006 implementing Directive 2004/39/EC of the European Parliament and of the Council as regards organisational requirements for investment firms and conditions for the exercise of the activity and as regards the definition of terms for the purposes of the said Directive. ».

Art. 4. Article 2 of the same law is supplemented with the following paragraph:
« For the purposes of this law, the following concepts are understood in the same sense as in the law of 6 April 1995 on the status and supervision of investment firms:
1° investment firm;
2° investment services and activities;
3° ancillary services;
4° investment advice;
5° execution of orders for the account of clients; 6° dealing on own account; 7° market maker; 8° portfolio management; 9° tied agent; 10° branch; 11° qualified participation; 12° parent undertaking; 13° subsidiary undertaking; 14° control; 15° close links. ».

Art. 5. The heading of Chapter II of the same law is replaced as follows: « Markets and transactions in financial instruments ».

Art. 6. Article 3 of the same law is replaced as follows:
« Art. 3. § 1. The Minister, on the advice of the CBFA, grants a license as a Belgian regulated market to the Belgian market operator for the markets that meet the provisions of this section.
The market operator of the Belgian regulated market provides all information - including a program of activities, specifying in particular the nature of the intended activities as well as the organizational structure - that is necessary for the CBFA to ensure that the market operator has put in place, for the regulated market at the time of the initial grant of the license, all necessary arrangements to comply with its obligations as a regulated market under the provisions of this section. The list of Belgian regulated markets licensed under the first paragraph and any changes to this list are published in the Belgian Official Gazette by the Minister. The Minister communicates this list to the other Member States and to the European Commission. Any change is communicated in the same manner. The list is published on the CBFA website. § 2. The market operator of the Belgian regulated market performs the tasks related to the organization and operation of a regulated market, under the supervision of the CBFA. The CBFA ensures that Belgian regulated markets comply with the provisions of this section. The CBFA ensures that Belgian regulated markets always meet the conditions for the initial grant of the license set out in this section. § 3. The Minister may, on the advice of the CBFA, withdraw the license of a Belgian regulated market, either at the request of the market operator organizing it, or on its own initiative if the market:
a) does not use the license within a period of twelve months, explicitly indicates that it will not use the license, or has not been operated for the preceding six months; b) obtained the license through false statements or by any other irregular means; c) no longer meets the conditions under which the license was granted; d) has seriously and systematically violated the provisions established by this section. In the cases referred to in the first paragraph, the market operator organizing the relevant market takes all appropriate measures to ensure an orderly transition with respect for the interests of investors. To this end, it draws up a transition plan which it submits to the CBFA for prior approval. If the market operator fails to draw up such a transition plan, the CBFA may impose one on it ex officio. The market operator remains subject to the supervision of the CBFA until all measures have been implemented. § 4. Unless the Minister decides otherwise when granting the market the status of regulated market or in a subsequent decision, the listing of financial instruments on a Belgian regulated market constitutes admission to the official listing for the purposes of the legal or regulatory provisions referring thereto. If applicable, the contrary decision of the Minister is mentioned in the list published in accordance with § 1, third paragraph. § 5. Without prejudice to any applicable provisions of Directive 2003/6/EC of the European Parliament and of the Council of 28 January 2003 on insider dealing and market manipulation (market abuse), trading taking place on a Belgian regulated market is governed by Belgian law. ».

Art. 7. Article 4, 5°, of the same law is supplemented as follows:
« , as well as effective arrangements for the efficient and timely settlement of transactions executed through its systems. ».

Art. 8. The following amendments are made to Article 5 of the same law:
1° § 1, 5° is replaced as follows:
« 5° transparent and non-discretionary rules and procedures guaranteeing fair and orderly trading, as well as objective criteria for the efficient execution of orders; »; 2° in § 1, 6°, the words « for reporting and » are repealed; 3° in § 3, the first and second paragraphs are replaced by the following paragraphs:
« Market rules and all amendments thereto must be approved in advance by the CBFA, within the framework of its supervision provided for in Article 3.

The market operator ensures the publication and updating of market rules on its website and in printed form. The approval by the CBFA of the rules and subsequent amendments is published on its website. ».

Art. 9. Article 6 of the same Act is replaced as follows:

« Art. 6. § 1. The market rules of Belgian regulated markets include transparent and non-discriminatory rules based on objective criteria governing access to or membership of the regulated market.

§ 2. These rules specify all obligations to be observed by members or participants arising from:
a) the establishment and management of the regulated market; b) the rules concerning transactions on the market; c) the professional standards applicable to the personnel of investment firms or credit institutions operating on the market; d) the conditions set out in § 3 for members or participants who are not investment firms or credit institutions; e) the rules and procedures for the clearing and settlement of transactions executed on the regulated market.

§ 3. Belgian regulated markets may admit as members or participants investment firms, credit institutions authorized under Directive 2000/12/EC, and other persons who:
a) are competent and reliable; b) possess sufficient skills and authority for trading; c) have, where applicable, put in place adequate organizational arrangements; d) possess sufficient resources for the role they must fulfill, taking into account the various financial arrangements the regulated market may have established to guarantee the proper settlement of transactions.

§ 4. Without additional formalities regarding matters regulated by Directive 2004/39/EC, investment firms and credit institutions from other Member States that have been authorized to execute client orders or trade for their own account have the right to become members of or have access to regulated markets established in Belgium through one of the following arrangements:
a) directly, by establishing a branch in Belgium; b) by becoming remote members or having remote access to the regulated market without being established in Belgium, provided that the trading procedures and systems of the relevant market do not require physical presence for the conclusion of transactions on the market.
The rules concerning access to or membership of a Belgian regulated market must enable direct participation or remote participation by investment firms and credit institutions.

§ 5. Belgian regulated markets inform the CBFA of the Member State in which they intend to make provisions allowing users or participants established in that State to have remote access to or trade on these markets.
The CBFA communicates this information within one month to the Member State where the regulated market intends to make such provisions.

§ 6. The market operators of Belgian regulated markets periodically communicate the list of their members and participants to the CBFA.
At the request of the competent authority of the host Member State of a Belgian regulated market, the CBFA communicates, within a reasonable time, the names of the members or participants established in that Member State to that authority.

§ 7. Belgian regulated markets have effective arrangements and procedures to regularly monitor whether their members and participants continuously comply with their rules.
Regulated markets monitor transactions carried out by their members or participants according to their systems so that breaches of these rules, trading conditions that disturb the orderly functioning of the market, or behaviors that may indicate market abuse can be identified.
The CBFA may determine more detailed rules regarding the obligations set out in the first and second paragraphs.

§ 8. The market operators of Belgian regulated markets report to the CBFA any breaches of their rules or trading conditions that significantly disturb the orderly functioning of the market or behaviors that may indicate market abuse.
The market operators of the regulated market provide the relevant information to the CBFA immediately and provide full cooperation in investigating and prosecuting cases of market abuse that have occurred in or through the systems of the regulated market.
The King may determine specific rules regarding the obligations set out in the first and second paragraphs concerning the market operators of regulated markets when it comes to transactions on regulated markets concerning linear bonds, treasury certificates, and split securities.

§ 9. Regulated markets from other Member States are entitled to grant remote access to their markets to members or participants established in Belgium via facilities installed in Belgium or otherwise.
If the CBFA, as the competent authority of the host Member State of a regulated market, has clear and demonstrable reasons to believe that this regulated market does not comply with the obligations arising from the provisions adopted for the implementation of Directive 2004/39/EC, it informs the competent authority of the home Member State of the regulated market of these findings. If the regulated market, despite the measures taken by the competent authority of the home Member State or because these measures are inadequate, continues to act in a manner clearly prejudicial to the interests of investors in Belgium or the orderly functioning of the markets, the CBFA, after having informed the competent authority of the home Member State, takes the necessary measures to protect investors and the good functioning of the markets. This includes the possibility of preventing the regulated market from making its facilities available to remote members or participants established in Belgium. The European Commission is informed without delay of these measures. Articles 41 to 43 apply to those who do not comply with the aforementioned order. ».

Art. 10. In the same Act, an Article 6bis is inserted, reading:

« Art. 6bis. § 1. Belgian regulated markets must establish clear and transparent rules concerning the admission of financial instruments to trading.
These rules ensure that all financial instruments admitted to trading on a Belgian regulated market can be traded in a fair, orderly, and efficient manner and that, in the case of securities, they are freely tradable.

§ 2. In the case of derivatives, the rules ensure in particular that the form of the derivative contract is compatible with orderly price formation and effective settlement conditions.

§ 3. In addition to the obligations set out in §§ 1 and 2, Belgian regulated markets must put in place and maintain effective arrangements to verify that issuers of securities admitted to trading on the regulated market comply with their obligations arising from Community law regarding initial, ongoing, or incidental information disclosure.
Belgian regulated markets put in place arrangements that facilitate the access of their members or participants to information made public in accordance with Community law.

§ 4. Belgian regulated markets put in place the necessary arrangements to regularly verify whether the financial instruments they have admitted to trading meet the admission conditions. ».

Art. 11. The following amendments are made to Article 7 of the same Act:

1° § 2, second paragraph, is replaced as follows:

« A security admitted to trading on a regulated market may subsequently be admitted to trading on another Belgian regulated market, even without the consent of

issuer, and compliance with the applicable provisions of Directive 2003/71/EC of the European Parliament and of the Council of 4 November 2003 concerning the prospectus to be published when securities are offered to the public or admitted to trading and amending Directive 2001/34/EC. The issuing institution is notified by the relevant Belgian regulated market that the security in question is traded on that regulated market. Securities that are not yet admitted to trading on a regulated market may only be admitted to trading on a Belgian regulated market at the request of the issuer or after its opinion on admission has been requested. The issuing institution is in no way obliged to provide directly the information required under Article 6bis, § 3, to any regulated market that has admitted its securities to trading without its consent."; 2° in § 3, the following sentence is inserted between the first and second sentences:
"The market operator of the regulated market may suspend trading in a financial instrument when that instrument no longer complies with the rules of the regulated market, unless such a measure could significantly harm the interests of investors or the orderly functioning of the market."; 3° § 4 is replaced as follows:
"§ 4. The market operator may delist a financial instrument that has been admitted to trading on a Belgian regulated market organized by it:
1° if it finds that, due to special circumstances, a normal and regular market for this instrument can no longer be maintained; 2° when this instrument no longer complies with the rules of the regulated market, unless such a measure could significantly harm the interests of investors or the orderly functioning of the market.
It notifies the CBFA in advance, which may, after consultation with it, oppose this in the interest of investor protection."; 4° § 6 is supplemented with the following paragraph:
"Without prejudice to §§ 3 and 4 and notwithstanding the possibility for market operators of Belgian regulated markets to inform market operators of other regulated markets directly, the market operator of a Belgian regulated market that suspends trading in a financial instrument or delists a financial instrument makes this decision public and informs the CBFA of the relevant information. The CBFA informs the relevant competent authorities of the other Member States.". Art. 12. In Article 9 of the same law, the following amendments are made:
1° the 3°, b) is replaced as follows:
"b) regarding the publication of market information of both pre- and post-trade concerning transactions in financial instruments admitted to a regulated market executed outside the market;"; 2° the article is supplemented as follows:
"4° the rules regarding the exchange of the information referred to in 2° between competent Belgian and foreign authorities, without prejudice to Articles 74 and following of this law.".
Art. 13. Article 11 of the same law is repealed.
Art. 14. In the heading of section 2 of chapter II of the same law, the words "Markets in" are changed to the words "Specific provisions for".
Art. 15. In Article 14 of the same law, the following amendments are made:
1° in 1°, the words "or a Belgian MTF" are inserted between the words "regulated market," and the words "special rules"; 2° in 3°, the words "Belgian organized markets" are replaced by the words "Belgian regulated markets and MTFs"; 3° in 4°, the words "the Belgian organized markets" are replaced by the words "transactions".

l’émetteur et dans le respect des dispositions pertinentes de la Directive 2003/71/CE du Parlement européen et du Conseil du 4 novembre 2003 concernant le prospectus à publier en cas d’offre au public de valeurs mobilières ou en vue de l’admission de valeurs mobilières à la négociation, et modifiant la Directive 2001/34/CE. Cet autre marché réglementé belge informe l’émetteur que la valeur mobilière en question y est négociée. Les valeurs mobilières qui ne sont pas encore admises à la négociation sur un marché réglementé ne peuvent être admises à la négociation sur un marché réglementé belge qu’à la demande de l’émetteur ou qu’après que son avis sur l’admission a été demandé. Un émetteur n’est pas tenu de fournir directement l’information exigée en vertu de l’article 6bis, § 3, à un marché réglementé qui a admis ses valeurs mobilières à la négociation sans son consentement."; 2° au § 3, la phrase suivante est insérée entre la première et la deuxième phrase :
« L’entreprise de marché organisant un marché réglementé peut suspendre la négociation de tout instrument financier qui n’obéit plus aux règles du marché réglementé, sauf si une telle mesure est susceptible de léser d’une manière significative les intérêts des investisseurs ou de compromettre le fonctionnement ordonné du marché. »; 3° le § 4 est remplacé par la disposition suivante :
« § 4. L’entreprise de marché peut prononcer la radiation d’un instrument financier admis à la négociation sur le marché réglementé belge qu’elle organise :
1° lorsqu’elle conclut qu’en raison de circonstances particulières, le marché normal et régulier de cet instrument ne peut plus être maintenu; 2° lorsque cet instrument n’obéit plus aux règles du marché réglementé, sauf si une telle mesure est susceptible de léser d’une manière significative les intérêts des investisseurs ou de compromettre le fonctionnement ordonné du marché. Elle en informe préalablement la CBFA qui peut, après concertation avec elle, s’y opposer dans l’intérêt de la protection des investisseurs. »; 4° le § 6 est complété par l’alinéa suivant :
« Sans préjudice des §§ 3 et 4 et nonobstant la possibilité dont disposent les entreprises de marché organisant des marchés réglementés belges d’informer directement les entreprises de marché organisant d’autres marchés réglementés, l’entreprise de marché organisant un marché réglementé belge qui suspend la négociation ou prononce la radiation d’un instrument financier rend sa décision publique et communique les informations pertinentes à la CBFA. La CBFA informe les autorités compétentes concernées des autres Etats membres. ». Art. 12. A l’article 9 de la même loi sont apportées les modifications suivantes :
1° le 3°, b), est remplacé par la disposition suivante :
« b) en matière de publication des informations de marché, tant antérieures que postérieures aux négociations, qui sont applicables aux transactions portant sur des instruments financiers admis à la négociation sur un marché réglementé, lorsque celles-ci sont effectuées hors marché; »; 2° l’article est complété comme suit :
« 4° les règles régissant l’échange des informations visées au 2° entre les autorités compétentes belges et étrangères, sans préjudice des articles 74 et suivants de la présente loi. ».
Art. 13. L’article 11 de la même loi est abrogé.
Art. 14. Dans l’intitulé de la section 2 du chapitre II de la même loi, les mots « Marchés d’ » sont remplacés par les mots « Dispositions spécifiques applicables aux ».
Art. 15. A l’article 14 de la même loi sont apportées les modifications suivantes :
1° au 1°, les mots « ou un MTF belge » sont insérés entre les mots « réglementé belge » et « , des règles »; 2° au 3°, les mots « marchés organisés belges » sont remplacés par les mots « marchés réglementés et MTF belges »; 3° au 4°, les mots « les marchés organisés belges de » sont remplacés par les mots « les transactions portant sur ».

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Art. 16. Artikel 15 van dezelfde wet wordt vervangen als volgt :
« Art. 15. Op advies van de CBFA kan de Koning regels vaststellen met betrekking tot de organisatie en de werking van en het toezicht op in België gevestigde MTF’s.
De in het eerste lid bedoelde regels kunnen inzonderheid betrekking hebben op 1° de toegang tot de markt volgens transparante criteria; 2° het bestaan van transparante en niet-discretionaire regels en procedures die een billijke en ordelijke handel garanderen, alsmede objectieve criteria voor de efficiënte uitvoering van orders bepalen; 3° de toepassing van adequate mechanismen en procedures ter voorkoming en opsporing van marktmanipulaties; 4° de bekendmaking van informatie betreffende vraag en aanbod en betreffende uitgevoerde transacties, alsook de transactiemeldingen aan de CBFA; 5° de grensoverschrijdende activiteiten van Belgische MTF’s; 6° onverminderd de andere door deze wet bepaalde bevoegdheden van de CBFA, de toezichtsbevoegdheden waarover de CBFA beschikt, alsmede de maatregelen en sancties ingeval van niet naleving van de toepasselijke regels. De Koning kan bij de uitoefening van de in dit artikel bepaalde machtiging, in voorkomend geval, specifieke regels bepalen voor bepaalde types van markten of voor door Hem aangeduide individuele markten. Op advies van de CBFA kan de Koning regels bepalen voor buitenlandse MTF’s die in België gevestigd zijn of zonder vestiging diensten verstrekken. ». Art. 17. In artikel 17 van dezelfde wet worden de volgende wijzigingen aangebracht :
1° § 1, 4°, wordt vervangen als volgt :
« 4° de personen die instaan voor de effectieve leiding van de onderneming en van de groep waarvan zij in voorkomend geval deel uitmaakt, hebben de vereiste professionele betrouwbaarheid en passende ervaring om deze functies uit te oefenen en om de gezonde en voorzichtige bedrijfsvoering en exploitatie van de gereglementeerde markt te waarborgen; »; 2° in § 1, 5°, worden de woorden « de onderneming moet over voldoende financiële middelen beschikken voor de organisatie van deze markten » vervangen door de woorden « de onderneming beschikt over voldoende financiële middelen om een ordelijke werking te bevorderen, gelet op de aard en omvang van de op de markt uitgevoerde transacties en het gamma en de graad van de risico’s waaraan zij is blootgesteld; »; 3° § 1 wordt aangevuld als volgt :
« 10° de onderneming is adequaat uitgerust voor het beheer van de risico’s waaraan zij blootgesteld is, voorziet in passende regelingen en systemen om alle risico’s van betekenis voor de exploitatie te onderkennen, en treft doeltreffende maatregelen om deze risico’s te beperken; 11° de onderneming treft regelingen voor een gezond beheer van de technische werking van het systeem en onder meer doeltreffende voorzorgsmaatregelen om met systeemstoringen verband houdende risico’s te ondervangen; 12° de onderneming houdt alle relevante gegevens in verband met de orders en transacties en de door haar verstrekte diensten gedurende vijf jaar ter beschikking van de CBFA; 13° de onderneming treft regelingen voor het duidelijk onderkennen en beheren van potentiële negatieve gevolgen voor de exploitatie van de gereglementeerde markt of voor de marktdeelnemers van elk conflict tussen de belangen van de gereglementeerde markt, de eigenaars of de marktonderneming ervan, en de goede werking van de gereglementeerde markt, in het bijzonder wanneer dergelijke belangenconflicten afbreuk kunnen doen aan de vervulling van enigerlei taken die door de bevoegde autoriteit aan de gereglementeerde markt zijn gedelegeerd. ». Art. 18. In dezelfde wet wordt een artikel 17bis ingevoerd, luidende :
« Art. 17bis. De marktondernemingen brengen de CBFA voorafgaandelijk op de hoogte van de voordracht tot benoeming of hernieuwing van benoeming, van de niet-hernieuwing van benoeming of van het ontslag, van de personen die deelnemen aan de effectieve leiding van de onderneming of van de groep waarvan zij in voorkomend geval deel uitmaakt.
Art. 16. L’article 15 de la même loi est remplacé par la disposition suivante:
« Art. 15. Le Roi, sur avis de la CBFA, peut arrêter des règles relatives à l’organisation, au fonctionnement et au contrôle des MTF établis en Belgique.
Les règles visées à l’alinéa 1er peuvent notamment porter sur :
1° l’accès au marché selon des critères transparents; 2° l’existence de règles et de procédures transparentes et non discrétionnaires assurant une négociation équitable et ordonnée et fixant des critères objectifs en vue de l’exécution efficace des ordres; 3° la mise en œuvre de mécanismes et procédures adéquats visant à empêcher et à déceler les manipulations de marché; 4° la publication d’informations relatives à l’offre et la demande et aux transactions effectuées, ainsi que les déclarations de transactions à la CBFA; 5° les activités transfrontalières des MTF belges; 6° sans préjudice des autres compétences dévolues à la CBFA par la présente loi, les pouvoirs de contrôle dont la CBFA dispose, ainsi que les mesures et sanctions susceptibles d’être prises en cas de non-respect des règles applicables. Dans l’exercice de l’habilitation qui Lui est accordée par le présent article, le Roi peut, le cas échéant, arrêter des règles spécifiques pour certains types de marchés ou pour des marchés individuels qu’Il désigne. Le Roi, sur avis de la CBFA, peut arrêter des règles applicables aux MTF étrangers qui sont établis en Belgique ou qui y fournissent des services sans y être établis. ». Art. 17. A l’article 17 de la même loi sont apportées les modifications suivantes :
1° le § 1er, 4°, est remplacé par la disposition suivante :
« 4° les personnes qui assurent la direction effective de l’entreprise et du groupe dont elle fait, le cas échéant, partie possèdent l’honorabilité professionnelle nécessaire et l’expérience adéquate pour exercer ces fonctions et pour garantir la gestion et l’exploitation saines et prudentes du marché réglementé; »; 2° au § 1er, 5°, les mots « l’entreprise doit disposer de ressources financières suffisantes pour l’organisation de ces marchés, » sont remplacés par les mots « l’entreprise doit disposer de ressources financières suffisantes pour faciliter un fonctionnement ordonné, compte tenu de la nature et de l’ampleur des transactions conclues sur le marché ainsi que de l’éventail et du niveau des risques auxquels elle est exposée, »; 3° le § 1er est complété comme suit :
« 10° l’entreprise doit être adéquatement équipée pour gérer les risques auxquels elle est exposée, elle doit mettre en œuvre des dispositifs et des systèmes appropriés lui permettant d’identifier tous les risques significatifs pouvant compromettre son bon fonctionnement et elle doit instaurer des mesures effectives pour atténuer ces risques; 11° l’entreprise doit mettre en œuvre des dispositifs propres à garantir la bonne gestion des opérations techniques des systèmes et, notamment, des procédures d’urgence efficaces pour faire face aux dysfonctionnements éventuels des systèmes de négociation; 12° l’entreprise doit tenir à la disposition de la CBFA, pour une durée de cinq ans, toutes les données pertinentes relatives aux ordres et transactions qu’elle a exécutés et aux services qu’elle a fournis; 13° l’entreprise doit prendre des dispositions pour repérer clairement et gérer les effets potentiellement dommageables, pour le fonctionnement du marché réglementé ou pour ses participants, de tout conflit d’intérêts entre les exigences du bon fonctionnement du marché réglementé et les intérêts du marché réglementé ou ceux de ses propriétaires ou de l’entreprise de marché qui l’organise, notamment dans le cas où un tel conflit risque de compromettre l’exercice d’une fonction qui a été déléguée au marché réglementé par l’autorité compétente. ». Art. 18. Un article 17bis, rédigé comme suit, est inséré dans la même loi :
« Art. 17bis. Les entreprises de marché informent préalablement la CBFA de la proposition de nomination ou de renouvellement de la nomination, ainsi que du non-renouvellement de la nomination ou de la révocation des personnes qui prennent part à la direction effective de l’entreprise ou du groupe dont elle fait, le cas échéant, partie.
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In the event of a proposal for the appointment of a person who will participate in the effective management of the market operator or of the group of which it forms part, as the case may be, the market operators shall communicate to the CBFA the information and documents that enable it to assess whether this person possesses the required professional integrity and appropriate experience, as referred to in Article 17.

The CBFA shall provide its opinion within a reasonable period regarding any proposal for appointment or renewal of an appointment. For the appointment or renewal of an appointment, the unanimous opinion of the CBFA is required.

Market operators shall also inform the CBFA of any division of tasks between the persons participating in the effective management of the market operator or of the group of which it forms part, as the case may be, of any division of tasks between the members of the management committee of the market operator or of the group of which it forms part, as the case may be, and of any significant changes in this division of tasks.".

Art. 19. Article 19 of the same Act is supplemented by the following paragraph:

« § 4. The market operator must:
1° provide information to the CBFA and make public information concerning the ownership structure of the market operator, and more specifically the identity and extent of the interests of parties who, directly or indirectly, own at least 10% of its capital or voting rights or are in a position to exercise significant influence over the management of the regulated market, and 2° notify the CBFA and make public any transfer of ownership that leads to a change in the circle of persons exercising significant influence over the operation of the regulated market. ».

Art. 20. Article 23bis is inserted into the same Act, worded as follows:

« Art. 23bis. § 1. Investment firms and credit institutions from other Member States have the right to access clearing and settlement institutions, including central counterparties, in Belgium for the processing of transactions in financial instruments or for making arrangements therefor. The access of these investment firms and credit institutions to such institutions is subject to the same non-discriminatory, transparent and objective business criteria as those applicable to Belgian participants, and covers all transactions regardless of whether they are executed on a regulated market or MTF established in Belgium.

§ 2. The Belgian regulated market grants all members or participants the right to designate the system for the clearing of transactions in financial instruments carried out on the relevant regulated market, provided that such links and facilities exist between the designated clearing system and any other systems and facilities that guarantee the efficient and economic settlement of the transaction in question.

The CBFA may not prohibit the use of such a system unless it has objective and demonstrable reasons to believe that the technical conditions for the clearing of transactions executed on the relevant regulated market via a clearing system other than that designated by the regulated market jeopardize the good and orderly functioning of the financial markets.

This assessment by the CBFA does not prejudice the competences of national central banks as supervisors of clearing systems or of other authorities supervising such systems. In exercising its aforementioned competences, the CBFA takes due account of the supervision already exercised by other authorities.

The rights of investment firms and credit institutions referred to in §§ 1 and 2 do not prejudice the right of operators of clearing and settlement systems, including central counterparties, to refuse to provide the requested services on legitimate business grounds.

§ 3. Belgian investment firms, credit institutions and market operators operating an MTF are permitted to make appropriate arrangements with clearing or settlement institutions, including central counterparties, from another Member State with a view to the clearing and/or settlement of some or all transactions that market participants have executed through their systems.

The CBFA may not prohibit the use of clearing or settlement institutions, including central counterparties, from other Member States, unless it has objective and demonstrable reasons to believe that this is necessary to maintain the orderly functioning of that MTF, taking into account the conditions for clearing systems determined in § 2.

In exercising this competence, the CBFA takes due account of the supervision already exercised on these institutions by national central banks as supervisors of clearing and settlement systems or by other competent supervisory authorities for such systems.

§ 4. Belgian regulated markets are permitted to make appropriate arrangements with clearing or settlement institutions, including central counterparties, from another Member State with a view to the settlement and/or clearing of some or all transactions that market participants have executed through their systems.

The CBFA may not prohibit the use of clearing or settlement institutions, including central counterparties, from other Member States, unless it has objective and demonstrable reasons to believe that this is necessary to maintain the orderly functioning of the regulated market, taking into account the conditions for clearing systems determined in § 2.

In exercising this competence, the CBFA takes due account of the supervision already exercised on these clearing and settlement institutions by national central banks as supervisors of clearing and settlement systems or by other competent supervisory authorities for such systems.

This article does not apply to members of the European System of Central Banks and other national institutions with a similar function, as well as other government bodies responsible for the management of public debt or involved in that management.».

Art. 21. Article 26 of the same Act is replaced as follows:

« Art. 26. The following are subject to the operating conditions determined by and pursuant to Articles 27, 28 and 28bis:
1° Belgian credit institutions and investment firms; 2° branches of credit institutions and investment firms established in Belgium subject to the law of an EEA Member State, for their transactions on Belgian territory; 3° branches of credit institutions and investment firms established in Belgium subject to the law of third countries; 4° credit institutions and investment firms subject to the law of third countries that legally provide services in Belgium, for their transactions on Belgian territory; 5° management companies of collective investment institutions established in Belgium, for their investment services as referred to in Article 3, 10°, of the Act of 20 July 2004 concerning certain forms of collective management of investment portfolios.

The persons mentioned in the first paragraph are referred to in the aforementioned articles as "the regulated enterprises".

According to rules further specified by the King on the advice of the CBFA, the aforementioned regulated enterprises, when they execute orders for clients' accounts and/or trade for their own account and/or receive and transmit orders, may enter into or conclude transactions with or between eligible counterparties without being obliged to comply with the obligations determined by and pursuant to Articles 27 and 28 with regard to these transactions or with regard to ancillary services directly related to these transactions.

The rules determined by and pursuant to Articles 27 and 28 do not apply to transactions concluded between members or participants of an MTF or between the MTF and its members or participants regarding the use of the MTF, in accordance with the rules of that MTF. These rules do not apply either to members and participants of regulated markets for transactions conducted between themselves on these markets. However, members of or participants in an MTF or regulated market must comply with the obligations determined by and pursuant to Articles 27 and 28 with respect to their clients when they execute the orders of those clients on behalf of their clients through the systems of an MTF or a regulated market.

The rules determined in Articles 27, 28 and 28bis do not apply to members of the European System of Central Banks and other national institutions with a similar function, as well as other

En cas de proposition de nomination d’une personne appelée à prendre part à la direction effective de l’entreprise de marché ou du groupe dont elle fait, le cas échéant, partie, les entreprises de marché communiquent à la CBFA les informations et documents qui lui permettront de juger si cette personne possède l’honorabilité professionnelle nécessaire et l’expérience adéquate, telles que visées à l’article 17.

La CBFA rend, dans un délai raisonnable, un avis sur toute proposition de nomination ou de renouvellement d’une nomination. La nomination ou le renouvellement de la nomination ne peut intervenir que si la CBFA a rendu un avis conforme.

Les entreprises de marché informent également la CBFA de la répartition éventuelle des tâches entre les personnes qui prennent part à la direction effective de l’entreprise de marché ou du groupe dont elle fait, le cas échéant, partie, de la répartition éventuelle des tâches entre les membres du comité de direction de l’entreprise de marché ou du groupe dont elle fait, le cas échéant, partie, ainsi que des modifications importantes intervenues dans cette répartition des tâches. ».

Art. 19. L’article 19 de la même loi est complété par le paragraphe suivant :

« § 4. L’entreprise de marché doit :
1° fournir à la CBFA et rendre publiques des informations concernant les propriétaires de l’entreprise de marché, notamment l’identité des personnes qui détiennent, directement ou indirectement, 10 % au moins de son capital ou de ses droits de vote ou qui sont en mesure d’exercer une influence significative sur la gestion du marché réglementé, ainsi que le montant des intérêts détenus par ces personnes; 2° signaler à la CBFA et rendre public tout transfert de propriété entraînant un changement de l’identité des personnes exerçant une influence significative sur l’exploitation du marché réglementé. ».

Art. 20. Un article 23bis, rédigé comme suit, est inséré dans la même loi :

« Art. 23bis.§1er. Les entreprises d’investissement et les établissements de crédit d’autres Etats membres ont le droit d’accéder en Belgique aux organismes de liquidation et de compensation, en ce compris les systèmes de contrepartie centrale, aux fins du dénouement ou de l’organisation du dénouement de transactions sur instruments financiers. L’accès desdites entreprises d’investissement et desdits établissements de crédit à ces organismes est soumis aux mêmes critères non discriminatoires, transparents et objectifs que ceux qui s’appliquent aux participants belges et porte sur toutes les transactions, que celles-ci soient effectuées ou non sur un marché réglementé ou un MTF établi en Belgique.

§ 2. Tout marché réglementé belge offre à tous ses membres ou à tous ses participants le droit de désigner le système de liquidation des transactions sur instruments financiers effectuées sur ledit marché, sous réserve de la mise en place de dispositifs et de liens entre le système de liquidation désigné et tout autre système ou facilité nécessaires pour assurer le règlement efficace et économique des transactions en question.

La CBFA ne peut interdire le recours à un tel système sauf si elle a des raisons claires et démontrables d’estimer que les conditions techniques de liquidation des transactions conclues sur ce marché réglementé via un autre système de liquidation que celui que le marché réglementé a désigné, sont de nature à compromettre le fonctionnement harmonieux et ordonné des marchés financiers.

Cette appréciation de la CBFA est sans préjudice des compétences des banques centrales nationales dans leur rôle de supervision des systèmes de liquidation ou de celles d’autres autorités chargées de la surveillance de ces systèmes. Dans l’exercice de ses compétences précitées, la CBFA tient compte de manière adéquate de la supervision et/ou de la surveillance déjà exercées par d’autres autorités.

Les droits accordés aux entreprises d’investissement et aux établissements de crédit par les §§ 1er et 2 sont sans préjudice du droit des opérateurs de systèmes de liquidation et de compensation, en ce compris les systèmes de contrepartie centrale, de refuser l’accès à leurs services pour des raisons commerciales légitimes.

§ 3. Les entreprises d’investissement, les établissements de crédit et les entreprises de marché belges exploitant un MTF sont autorisés à convenir avec des organismes de liquidation ou de compensation, en ce compris des systèmes de contrepartie centrale, d’un autre Etat membre de mécanismes appropriés afin d’organiser la liquidation et/ou la compensation de tout ou partie des transactions conclues par leurs participants dans le cadre de leurs systèmes.

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La CBFA ne peut interdire le recours à des organismes de liquidation ou de compensation, en ce compris des systèmes de contrepartie centrale, d’un autre Etat membre, sauf si elle a des raisons claires et démontrables d’estimer que cette interdiction est nécessaire pour préserver le fonctionnement ordonné du MTF et compte tenu des conditions imposées aux systèmes de liquidation au § 2.

Dans l’exercice de cette compétence, la CBFA tient compte de manière adéquate de la supervision et/ou de la surveillance de ces organismes déjà exercées par les banques centrales nationales en tant que superviseurs des systèmes de liquidation et de compensation ou par d’autres autorités de surveillance compétentes concernant ces systèmes.

§ 4. Les marchés réglementés belges sont autorisés à convenir avec des organismes de liquidation ou de compensation, en ce compris des systèmes de contrepartie centrale, d’un autre Etat membre de mécanismes appropriés afin d’organiser la compensation et/ou la liquidation de tout ou partie des transactions conclues par leurs participants dans le cadre de leurs systèmes.

La CBFA ne peut interdire le recours à des organismes de liquidation ou de compensation, en ce compris des systèmes de contrepartie centrale, d’un autre Etat membre, sauf si elle a des raisons claires et démontrables d’estimer que cette interdiction est nécessaire pour préserver le fonctionnement ordonné du marché réglementé et compte tenu des conditions imposées aux systèmes de liquidation au § 2.

Dans l’exercice de cette compétence, la CBFA tient compte de manière adéquate de la supervision et/ou de la surveillance de ces organismes de liquidation ou de compensation déjà exercées par les banques centrales nationales en tant que superviseurs des systèmes de liquidation et de compensation ou par d’autres autorités de surveillance compétentes concernant ces systèmes.

Le présent article n’est pas applicable aux membres du système européen de banques centrales, aux autres organismes nationaux à vocation similaire, ni aux autres organismes publics chargés de la gestion de la dette publique ou intervenant dans cette gestion. ».

Art. 21. L’article 26 de la même loi est remplacé par la disposition suivante :

« Art. 26. Sont soumis aux conditions d’exercice de l’activité prévues par et en vertu des articles 27, 28 et 28bis :
1° les établissements de crédit et les entreprises d’investissement de droit belge; 2° les succursales établies en Belgique d’établissements de crédit et d’entreprises d’investissement relevant du droit d’un Etat membre de l’EEE, pour ce qui est de leurs transactions effectuées sur le territoire belge; 3° les succursales établies en Belgique d’établissements de crédit et d’entreprises d’investissement relevant du droit d’Etats tiers; 4° les établissements de crédit et les entreprises d’investissement qui relèvent du droit d’Etats tiers et qui sont légalement autorisés à fournir des services en Belgique, pour ce qui est de leurs transactions effectuées sur le territoire belge; 5° les sociétés de gestion d’organismes de placement collectif établies en Belgique, pour ce qui est de leurs services d’investissement tels que visés à l’article 3, 10°, de la loi du 20 juillet 2004 relative à certaines formes de gestion collective de portefeuilles d’investissement.

Les personnes mentionnées à l’alinéa 1er sont, dans les articles précités, désignées par le vocable « entreprises réglementées ».

Selon les règles précisées par le Roi sur avis de la CBFA, les entreprises réglementées précitées sont autorisées, lorsqu’elles exécutent des ordres pour le compte de clients et/ou négocient pour compte propre et/ou reçoivent et transmettent des ordres, à susciter des transactions entre des contreparties éligibles ou à conclure des transactions avec ces contreparties sans devoir se conformer aux obligations prévues par et en vertu des articles 27 et 28, en ce qui concerne lesdites transactions ou tout service auxiliaire directement lié à ces transactions.

Les règles prévues par et en vertu des articles 27 et 28 ne sont pas applicables aux transactions conclues en vertu des règles régissant un MTF entre ses membres ou participants ou entre le MTF et ses membres ou participants en liaison avec l’utilisation du MTF. Ces règles ne s’appliquent pas davantage aux membres et participants de marchés réglementés pour les transactions conclues entre eux sur ces marchés.

Toutefois, les membres ou participants du MTF ou du marché réglementé doivent respecter les obligations prévues par et en vertu des articles 27 et 28 en ce qui concerne leurs clients lorsque, en agissant pour le compte de leurs clients, ils exécutent leurs ordres par le truchement des systèmes d’un MTF ou d’un marché réglementé.

Les règles prévues par les articles 27, 28 et 28bis ne sont pas applicables aux membres du système européen de banques centrales, aux autres organismes nationaux à vocation similaire, ni aux autres

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government bodies responsible for managing public debt or involved in such management.".

Art. 22. Article 27 of the same law is replaced as follows:

« Art. 27. § 1. When providing investment services and/or, where applicable, ancillary services to clients, regulated enterprises must act in an honest, fair, and professional manner in the best interests of such clients and comply, in particular, with the rules of conduct set out in §§ 2 to 12.

§ 2. All information, including advertising, addressed by the regulated enterprise to clients or potential clients, must be correct, clear, and not misleading. Advertising information must be clearly identifiable as such.

§ 3. Appropriate information is communicated to clients or potential clients, in an understandable form, on:
— the regulated enterprise and its services;
— financial instruments and proposed investment strategies, which should include appropriate comments and warnings on the risks inherent in investing in these instruments or in certain investment strategies; — places of execution, and — costs and related fees in order to reasonably enable said clients to understand the nature of the investment service and the specific type of financial instrument proposed, as well as the risks associated with them, and consequently to make investment decisions with full knowledge. This information may be provided in a standardized form.

§ 4. When providing investment advice or portfolio management services, the regulated enterprise obtains from the client or potential client the necessary information concerning their knowledge and experience in investment matters relating to the specific type of product or service, their financial situation, and their investment objectives, in order to be able to recommend to them the adequate investment services and financial instruments or provide them with adequate portfolio management services.

In cases where a regulated enterprise providing an investment service falling under investment advice or portfolio management does not obtain the information required under the first paragraph, it refrains from recommending to the concerned client or potential client investment services or financial instruments and from providing portfolio management services.

§ 5. The regulated enterprise providing investment services other than those referred to in § 4 requests information from the client or potential client concerning their knowledge and experience in investment matters relating to the specific type of product or service proposed or requested, to be able to determine whether the proposed investment service or product is appropriate for the client.

If the regulated enterprise considers, based on the information received in accordance with the first paragraph, that the product or service is not appropriate for the client or potential client, it warns them. This warning may be transmitted in a standardized form.

If the client or potential client chooses not to provide the information referred to in the first paragraph, or if the information provided regarding their knowledge and experience is insufficient, the regulated enterprise warns the client or potential client that it cannot determine, due to this decision, whether the proposed service or product is appropriate for them. This warning may be transmitted in a standardized form.

§ 6. When regulated enterprises provide investment services consisting solely of the execution and/or receipt and transmission of client orders, with or without ancillary services, they may provide these investment services to their clients without having to request the information or carry out the assessment provided for in § 5, provided that all of the following conditions are met:
— the services mentioned above concern shares admitted to trading on a regulated market or on an equivalent market of a third country, money market instruments, bonds and other debt securities (excluding bonds and other debt securities that involve a derivative instrument), UCITS, and other non-complex financial instruments. By "equivalent market of a third country," is meant a market that appears on the list published by the European Commission in application of Article 19, § 6, of Directive 2004/39/EC; — the service is provided at the initiative of the client or potential client; — the client or potential client has been clearly informed that, when providing this service, the regulated enterprise is not required to assess whether the instrument or service provided or proposed is appropriate and that consequently, they do not benefit from the corresponding protection of the relevant rules of conduct; this warning may be transmitted in a standardized form; — the regulated enterprise complies with the conflict of interest rules provided for by and under Article 20bis, § 2, of the law of 22 March 1993 on the status and supervision of credit institutions, as well as by and under Article 62bis of the law of 6 April 1995 on the status and supervision of investment firms.

§ 7. The regulated enterprise creates a file including the document(s) approved by the enterprise and the client, stating the rights and obligations of the parties as well as the other conditions under which the enterprise provides services to the client.

The regulated enterprise providing an investment service other than investment advice to a new retail client concludes in writing with this client a basic agreement, on paper or another durable medium, stating the fundamental rights and obligations of the enterprise and the client.

The rights and obligations of the parties to the agreement may be incorporated by reference to other documents or legal texts.

The King, on the advice of the CBFA, may adopt more precise rules concerning the content of agreements to be concluded with clients. These rules do not prejudice the rights and obligations of common law, it being understood that they may provide that portfolio management agreements cannot result in a reduction of the common law liability of the regulated enterprise.

§ 8. The client must receive from the regulated enterprise adequate reports on the service it provides to its clients. These reports include, where applicable, the costs related to transactions executed and services provided for the client.

§ 9. In cases where an investment service is proposed within the framework of a financial product that is already subject to other provisions of Community legislation or to common European standards regarding credit institutions and consumer credit concerning the assessment of client risks and/or information requirements, this service is not additionally subject to the obligations set forth in this article.

§ 10. Regulated enterprises authorized to execute orders on behalf of clients apply procedures and provisions guaranteeing the prompt, fair, and efficient execution of these orders compared to other client orders or their own trading positions.

These procedures or provisions provide for the execution of client orders, otherwise comparable, based on the date of their receipt by the regulated enterprise.

§ 11. The King, on the advice of the CBFA and after open consultation, specifies the execution rules for the conduct rules referred to in §§ 1 to 10, particularly for the purpose of satisfying the obligations arising from Directives 2004/39/EC and 2006/73/EC. In particular, he may provide for different rules depending on whether it concerns professional clients or retail clients.

§ 12. The King, on the advice of the CBFA and after open consultation, may also adopt additional conduct rules with a view to ensuring investor protection and the proper functioning of the market.".

Art. 23. Article 28 of the same law is replaced as follows:

« Art. 28. § 1. Within the framework of the operating conditions applicable to it, the regulated enterprise takes, in accordance with the provisions of §§ 2 to 6, all reasonable measures to obtain, when executing orders, the best possible result for its clients, taking into account the price, cost, speed, probability of execution and settlement, size, nature of the order, or any other consideration relating to the execution of the order. Nevertheless,

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relevant aspects. In the event of a specific instruction from the client, the regulated firm is nevertheless obliged to execute the order in accordance with that specific instruction.

§ 2. The regulated firm establishes and maintains effective arrangements to comply with § 1. It establishes and applies in particular an order execution policy that enables it to obtain the best possible result for its clients' orders in accordance with § 1.

§ 3. The order execution policy includes, for each class of instruments, information on the various places where the regulated firm executes its clients' orders and the factors influencing the choice of execution venue. It includes at least the execution venues that enable the regulated firm to consistently obtain the best possible result for the execution of clients' orders.

The regulated firm provides its clients with adequate information about its order execution policy. The regulated firm obtains the prior consent of its clients to its order execution policy.

When the order execution policy provides for the possibility of executing orders outside a regulated market or an MTF, the regulated firm informs its clients or potential clients of this possibility in particular. The regulated firm must obtain the express prior consent of its clients before executing clients' orders outside a regulated market or an MTF. The regulated firm may obtain this consent either in the form of a general agreement or with respect to individual transactions.

§ 4. The regulated firm monitors the effectiveness of its arrangements and policies for order execution to identify and remedy any shortcomings where necessary. In particular, the regulated firm periodically reviews whether the execution venues included in the order execution policy lead to the best possible result for the client or whether it needs to amend its execution arrangements. The regulated firm notifies its clients of any material changes to its order execution arrangements or its order execution policy.

§ 5. The regulated firm demonstrates to its clients, upon request, that it has executed their orders in accordance with the firm's order execution policy.

§ 6. The King, on the advice of the CBFA and after public consultation, determines further rules for the implementation of §§ 1 to 5, in particular to comply with the obligations arising from Directives 2004/39/EC and 2006/73/EC. In particular, he may determine different rules depending on whether the clients are professional or non-professional.

Art. 24. In the same law, Article 28bis is inserted, worded as follows:

« Art. 28bis. § 1. The regulated firm acts in an honest, fair and professional manner and in a way that promotes market integrity.

The King may, on the advice of the CBFA and after public consultation, determine further rules for the implementation of the first paragraph, in particular to comply with the obligations arising from Directives 2004/39/EC and 2006/73/EC.

§ 2. Regulated firms settle their transactions in fungible financial instruments admitted to trading on a Belgian regulated market with each other by book entry. ».

Art. 25. The following amendments are made to Article 30 of the same law:

1° in the 1°, the words « provisions of Articles 26 and 27 or of the provisions established under Articles 26, 28 and 29 » are replaced by the words « provisions determined by or under Articles 26 to 29 »;

2° in the 2°, the words « provisions of Article 26 or of the provisions established under Articles 26, 28 and 29 » are replaced by the words « provisions determined by or under Articles 26 to 29 ».

Art. 26. In Article 31, § 5 of the same law, amended by Article 30 of the Law of 15 December 2004, the first sentence is replaced as follows:

« The placement of financial instruments by a financial intermediary on an account with a qualified intermediary or with an institution referred to in § 1 or § 2, which subjects these instruments to the privilege of such intermediary or institution, requires the consent of the client as referred to in Article 77bis of the Law of 6 April 1995 on the status and supervision of investment firms. ».

Art. 27. In the same law, Article 37bis is inserted, worded as follows:

« Art. 37bis. The CBFA is responsible for the tasks of the competent authority referred to in Regulation 1287/2006 and ensures compliance with this Regulation. The provisions of this section, Article 41, 3°, and Sections 6 and 7 of Chapter III apply mutatis mutandis. ».

Art. 28. Article 43bis of the same law is repealed.

Art. 29. The following amendments are made to Article 77 of the same law:

1° § 2 is supplemented as follows:

« Within the framework of cooperation agreements concluded with the authorities referred to in § 1, the CBFA is authorized to, regarding the powers referred to in Article 77bis, § 1, b), exempt from compliance with legal or regulatory provisions, provided that the conditions it establishes are met, in particular for equivalent investor protection. »;

2° a § 4 is added, worded as follows:

« § 4. Within the framework of its tasks referred to in Article 77bis, § 1, b), the CBFA establishes proportional cooperation arrangements with the other relevant market authorities of regulated markets, in particular through proportional cooperation agreements, when the activities of a regulated market that has established provisions in another Member State have become of significant importance in that Member State, within the meaning of Article 16 of Regulation 1287/2006, for the functioning of securities markets and investor protection, taking into account the state of securities markets in the host Member State. ».

Art. 30. In the same law, Article 77bis is inserted, worded as follows:

« Art. 77bis. § 1. Without prejudice to the relevant provisions of Section 7 of Chapter III of this law, the following provisions apply:

a) in the context of combating market abuse, regarding mutual cooperation between the CBFA and the other competent authorities referred to in Article 11, first paragraph, of Directive 2003/6/EC of the European Parliament and of the Council of 28 January 2003 on insider dealing and market manipulation (market abuse);

b) in the context of the powers referred to in Article 45, § 1, 1°, 3°, and 4°, regarding mutual cooperation between the CBFA and the other competent authorities referred to in Article 4, paragraph 1, 22) of Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments, and in Article 4, (4) of Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006 on the access to and exercise of the activities of credit institutions, in order to comply with the obligations arising from the aforementioned Directive 2004/39/EC:

1° Whenever necessary for the performance of their tasks, the CBFA cooperates with the other competent authorities, using the powers conferred upon it, either under the aforementioned Directives or under national legislation. The CBFA has in particular the powers conferred upon it by this law for this purpose. The CBFA assists the competent authorities of other Member States. It exchanges information with the other competent authorities and cooperates with them in investigative or supervisory activities, including on-site inspections, even if the practices thus investigated or verified do not constitute a breach of Belgian legislation.

2° The CBFA immediately provides all information necessary for the purpose mentioned in 1°. To this end, in addition to appropriate organizational measures for smooth cooperation as referred to in 1°, the CBFA immediately takes all necessary measures to collect the requested information.

If the CBFA is unable to provide the information requested by a competent authority immediately regarding the powers referred to in § 1, a), it informs that authority of the reasons for this.

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instrumenten worden onderworpen aan het voorrecht van deze tussenpersoon of instelling, is de toestemming van de cliënt vereist als bedoeld in artikel 77bis van de wet van 6 april 1995 inzake het statuut van en het toezicht op de beleggingsondernemingen. ».

Art. 27. In dezelfde wet wordt een artikel 37bis ingevoegd, luidende :

« Art. 37bis. De CBFA staat in voor de taken als bevoegde autoriteit waarvan sprake in de verordening 1287/2006 en ziet toe op de naleving van deze verordening. De bepalingen van deze afdeling, artikel 41, 3°, en de afdelingen 6 en 7 van hoofdstuk III, zijn van overeenkomstige toepassing. ».

Art. 28. Artikel 43bis van dezelfde wet wordt opgeheven.

Art. 29. In artikel 77 van dezelfde wet worden de volgende wijzigingen aangebracht :

1° § 2 wordt aangevuld als volgt :

« In het kader van de samenwerkingsovereenkomsten die zijn afgesloten met de in § 1 bedoelde autoriteiten, is de CBFA gemachtigd om, wat de in artikel 77bis, § 1, b) bedoelde bevoegdheden betreft, een vrijstelling te verlenen van de naleving van de wettelijke of reglementaire bepalingen, mits de voorwaarden worden nageleefd die zij vaststelt, inzonderheid voor een gelijkwaardige bescherming van de beleggers. »;

2° er wordt een § 4 toegevoegd, luidende :

« § 4. In het kader van haar opdrachten als bedoeld in artikel 77bis, § 1, b), treft de CBFA evenredige samenwerkingsregelingen met de andere betrokken marktautoriteiten van gereglementeerde markten, met name via evenredige samenwerkingsovereen-komsten, wanneer de werkzaamheden van een gereglementeerde markt die in een andere lidstaat voorzieningen heeft geïnstalleerd, in die lidstaat van aanzienlijk belang zijn geworden, in de zin van artikel 16 van de verordening 1287/2006, voor de werking van de effectenmarkten en de bescherming van de beleggers, gelet op de toestand van de effectenmarkten in de lidstaat van ontvangst. ».

Art. 30. In dezelfde wet wordt een artikel 77bis ingevoegd, luidende :

« Art. 77bis. § 1. Onverminderd de relevante bepalingen van afdeling 7 van hoofdstuk III van deze wet, zijn de volgende bepalingen van toepassing

a) in het kader van de bestrijding van marktmisbruik, wat de wederzijdse samenwerking betreft tussen de CBFA en de overige bevoegde autoriteiten als bedoeld in artikel 11, eerste lid van Richtlijn 2003/6/EG van het Europees Parlement en de Raad van 28 januari 2003 betreffende handel met voorwetenschap en marktmanipulatie (marktmisbruik);

b) in het kader van de bevoegdheden als bedoeld in artikel 45, § 1, 1°, 3°, en 4°, wat de wederzijdse samenwerking betreft tussen de CBFA en de overige bevoegde autoriteiten als bedoeld in artikel 4, lid 1, 22) van Richtlijn 2004/39/EG van het Europees Parlement en de Raad van 21 april 2004 betreffende markten voor financiële instrumenten, en in artikel 4, (4) van Richtlijn 2006/48/EG van het Europees Parlement en de Raad van 14 juni 2006 betreffende de toegang tot en de uitoefening van de werkzaamheden van kredietinstellingen, teneinde de uit de voornoemde Richtlijn 2004/39/EG voortvloeiende verplichtingen na te leven :

1° Telkens wanneer dat noodzakelijk is voor het vervullen van hun taken, werkt de CBFA samen met de andere bevoegde autoriteiten, en maakt daarbij gebruik van de bevoegdheden die haar zijn verleend, hetzij krachtens de voornoemde Richtlijnen, hetzij ingevolge de nationale wetgeving. De CBFA beschikt hiertoe inzonderheid over de bevoegdheden die haar bij deze wet zijn toegekend. De CBFA verleent bijstand aan de bevoegde autoriteiten van de andere lidstaten. Zij wisselt met de andere bevoegde autoriteiten inzonderheid informatie uit en werkt met hen samen bij onderzoeks- of toezichtsactiviteiten, inclusief voor een inspectie ter plaatse, ook al houden de aldus onderzochte of geverifieerde praktijken geen schending van Belgische regelgeving in.

2° De CBFA verstrekt onmiddellijk alle informatie die voor het in het 1° genoemde doel noodzakelijk is. Daartoe neemt de CBFA, naast de passende organisatorische maatregelen voor een vlotte samenwerking als bedoeld in het 1°, onverwijld alle nodige maatregelen om de gevraagde informatie te verzamelen.

Indien de CBFA, wat de in § 1, a) bedoelde bevoegdheden betreft, niet bij machte is om de door een bevoegde autoriteit gevraagde informatie onmiddellijk te verstrekken, stelt zij deze autoriteit in kennis van de redenen hiervan.

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If, more particularly regarding the powers referred to in § 1, b), a request is made to the CBFA to carry out an on-site inspection or conduct an investigation, it shall, within its powers, comply with this request by:
— carrying out the inspection or investigation itself; — allowing the authority that submitted the request, or auditors or experts, to carry out the inspection or investigation themselves.

3° The information exchanged within the framework of cooperation is subject to the professional secrecy obligation imposed by Article 74. When the CBFA provides information within the framework of cooperation, it may indicate that such information may only be disclosed with its express consent or for the purposes for which it has agreed. Similarly, when receiving information, the CBFA must, in derogation of Article 75, respect the restrictions imposed by the foreign authority regarding the possibility of communicating the information thus received.

4° When the CBFA is convinced that acts violating the provisions of the aforementioned Directives have been or are being carried out on the territory of another Member State, or that certain acts affect financial instruments traded on a regulated market in another Member State, it shall inform the competent authority of that other Member State in as specific a manner as possible. If the CBFA is informed by an authority of another Member State that similar acts are being carried out in Belgium, it shall take the necessary measures and inform the notifying authority of the results of these measures, as well as, as far as possible, of important interim developments. The competent authorities of the various Member States competent under Article 10 of the aforementioned Directive 2006/3/EC shall consult each other regarding the follow-up they consider giving to their actions.

§ 2. In implementing § 1, the CBFA may refuse to comply with a request for information, investigation, on-site inspection, or supervision if:
— complying with such requests could jeopardize the sovereignty, security, or public order of Belgium; or — if judicial proceedings have already been initiated in Belgium for the same facts and against the same persons; or — if a final judgment has already been issued against these persons for the same facts in Belgium.
In this case, it shall inform the requesting competent authority thereof, providing as detailed information as possible regarding the procedure or judgment in question.

§ 3. Regarding the powers referred to in § 1, a), 1° the CBFA may, without prejudice to Article 226 of the EC Treaty, when its request for information is not honored within a reasonable time or is rejected, bring this failure to the attention of the Committee of European Securities Regulators, which will deliberate to find a quick and effective solution; 2° the CBFA may, without prejudice to its obligations under criminal proceedings, use the information it receives from a competent authority solely for the exercise of supervision over compliance with Articles 25 and 25bis, as well as within the framework of administrative or judicial proceedings related thereto. However, if the competent authority providing the information consents, the CBFA may use the information for other purposes or transmit it to the competent authorities of other Member States; 3° the CBFA may request that an investigation be carried out by the competent authority of another Member State on the territory of that Member State. Furthermore, it may request that some members of its staff be authorized to accompany the members of the staff of the competent authority of the other Member State during the investigation. A competent authority of another Member State may request that an investigation be carried out by the CBFA in Belgium. It may also request that some members of its staff be authorized to accompany the members of the staff of the CBFA during the investigation. The investigation is, however, carried out under the ultimate responsibility of the Member State on whose territory the investigation takes place.

More particularly, regarding the powers referred to in § 1, b), when the CBFA receives a request concerning an on-site verification or an inquiry, it shall comply with it within the framework of its powers:
— by carrying out the verification or inquiry itself; — by allowing the requesting authority or auditors or experts to carry out the verification or inquiry directly.

3° The information exchanged within the framework of cooperation is covered by the professional secrecy obligation referred to in Article 74.
When communicating information within the framework of cooperation, the CBFA may specify that this information cannot be disclosed without its express consent or solely for the purposes for which it has given its agreement. Similarly, when receiving information, the CBFA must, in derogation of Article 75, respect the restrictions specified by the foreign authority regarding the possibility of communicating the information thus received.

4° When the CBFA is convinced that acts infringing the provisions of the aforementioned Directives have been or are being accomplished on the territory of another Member State, or that acts affect financial instruments traded on a regulated market located in another Member State, it shall inform the competent authority of that other Member State in as detailed a manner as possible. If the CBFA has been informed by an authority of another Member State that identical acts have been accomplished in Belgium, it shall take appropriate measures and communicate to the authority that informed it the results of its intervention and, in particular, as far as possible, the main interim developments of its action. The competent authorities of the various Member States competent for the purposes of Article 10 of the aforementioned Directive 2003/6/EC shall consult each other regarding the follow-up proposed for their action.

§ 2. In executing § 1, the CBFA may refuse to comply with a request for information, inquiry, on-site verification, or supervision when:
— complying with such a request is likely to affect the sovereignty, security, or public order of Belgium; or — a judicial procedure has already been initiated for the same facts and against the same persons in Belgium; or — these persons have already been finally judged for the same facts in Belgium.
In such a case, it shall notify the competent authority that submitted the request accordingly, providing information as circumstantial as possible regarding the procedure or judgment in question.

§ 3. Regarding the powers referred to in § 1,
1° without prejudice to Article 226 of the EC Treaty, the CBFA may, when its request for information receives no response within reasonable time limits or is rejected, bring this lack of response to the attention of the European Committee of Securities Market Regulators, which will examine the question to reach a quick and effective solution; 2° without prejudice to the obligations incumbent upon it within the framework of judicial procedures of a criminal nature, the CBFA may not use the information it has received from a competent authority except for the purpose of exercising control over compliance with Articles 25 and 25bis and within the framework of administrative or judicial procedures linked to this exercise. However, if the competent authority communicating the information consents, the CBFA may use this information for other purposes or transmit it to the competent authorities of other Member States; 3° the CBFA may request that an inquiry be conducted by the competent authority of another Member State on the territory of the latter. It may also request that some members of its staff be authorized to accompany those of the competent authority of this other Member State during the inquiry. A competent authority of another Member State may request that an inquiry be conducted by the CBFA in Belgium. It may also request that some members of its staff be authorized to accompany those of the CBFA during the inquiry. However, the inquiry is entirely placed under the control of the Member State on whose territory it is performed.

The CBFA may refuse to proceed with an investigation as referred to in the second paragraph when such an investigation could jeopardize the sovereignty, security, or public order of Belgium, or if judicial proceedings have already been initiated in Belgium for the same facts and against the same persons, or if a final judgment has already been issued against these persons for the same facts in Belgium. In that case, it shall inform the requesting competent authority thereof, providing as detailed information as possible regarding the procedure or judgment in question. Without prejudice to the provisions of Article 226 of the EC Treaty, the CBFA may, when its request for an investigation or its request that members of its staff accompany members of the competent authority of another Member State are not honored within a reasonable time, or are rejected, have this failure noted by the Committee of European Securities Regulators, which will deliberate to find a quick and effective solution.

§ 4. Regarding the powers referred to in § 1, b), the CBFA may, without prejudice to the obligations incumbent upon it within judicial procedures of a criminal nature, use the information it receives from a competent authority solely to exercise supervision over compliance with the conditions for access to the activities of investment firms and credit institutions, as well as to facilitate supervision, on an individual or consolidated basis, over compliance with the conditions for the exercise of this activity, to ensure the proper functioning of trading systems, to impose sanctions, within the framework of an administrative appeal procedure or a legal action brought against a decision of the CBFA, and within the framework of the out-of-court mechanism for handling investor complaints. However, if the competent authority providing the information consents, the CBFA may use this information for other purposes or transmit it to the competent authorities of other States.

§ 5. Paragraphs 1, 2, and 3, 2° and 3°, first to fourth paragraph, also apply to the conditions established in cooperation agreements, within the framework of cooperation with authorities of third States.

Art. 31. In the same law, an Article 77ter is inserted, reading:
« Art. 77ter. The Minister appoints the authority that acts as a contact point to receive requests for the exchange of data or requests for cooperation in execution of Article 77bis, § 1, b).
The Minister informs the European Commission and the other Member States of the European Economic Area thereof. ».

CHAPTER III. — Amendments to the Law of 6 April 1995 on the status of and supervision over investment firms, intermediaries, and investment advisors

Art. 32. The heading of the Law of 6 April 1995 on the status of and supervision over investment firms, intermediaries, and investment advisors is replaced as follows:
« Law of 6 April 1995 on the status of investment firms ».

Art. 33. Articles 36 to 39 of the same law are repealed.

Art. 34. Article 44 of the same law is replaced as follows:
« Art. 44. Without prejudice to the exceptions mentioned in Article 45, the provisions of this book apply to Belgian companies whose ordinary activity consists of the professional provision or offering of one or more investment services to third parties and/or the exercise of one or more investment activities, as well as to foreign companies that exercise this activity in Belgium. These companies are hereinafter referred to as « investment firms ». In derogation of the first paragraph, the investment service referred to in Article 46, 1°, 8 may also be exercised by a market operator that organizes a regulated market, provided that the CBFA has established that it complies with the provisions of Articles 57 to 64, 66, 67, 69, and 90. Articles 48, first paragraph, third sentence, 50, first paragraph, second sentence, 83 to 89, 92 to 94, and 110 and 111 apply. The CBFA publishes the list of such companies, indicating the MTFs operated, and makes this list and any modifications to it available on its website. Article 104 applies by analogy if the CBFA establishes that the aforementioned conditions are no longer met. ».

The CBFA may refuse to conduct an inquiry under a request submitted in accordance with the second paragraph when such an inquiry is likely to affect the sovereignty, security, or public order of Belgium, or when a judicial procedure has already been initiated for the same facts and against the same persons in Belgium, or when these persons have already been finally judged for the same facts in Belgium. In this case, it shall notify the competent authority that submitted the request, providing information as circumstantial as possible regarding the procedure or judgment concerned. Without prejudice to Article 226 of the EC Treaty, the CBFA may, when its request to open an inquiry or to allow members of its staff to accompany those of the competent authority of the other Member State receives no response within reasonable time limits or is rejected, bring this lack of response to the attention of the European Committee of Securities Market Regulators, which will examine the question to reach a quick and effective solution.

§ 4. Regarding the powers referred to in § 1, b), without prejudice to the obligations incumbent upon it within judicial procedures of a criminal nature, the CBFA may not use the information it has received from a competent authority except for the purpose of exercising control over compliance with the conditions of access to the activity of investment firms and credit institutions and to facilitate control, on an individual or consolidated basis, over the conditions for the exercise of this activity, to ensure the proper functioning of trading systems, to impose sanctions, within the framework of an administrative appeal or a legal action brought against a decision of the CBFA, within the framework of the out-of-court mechanism for the settlement of investor complaints. However, if the competent authority communicating the information consents, the CBFA may use this information for other purposes or transmit it to the competent authorities of other States.

§ 5. Paragraphs 1, 2, and 3, 2° and 3°, paragraphs 1 to 4, are also applicable, according to the conditions determined in cooperation agreements, within the framework of cooperation with authorities of third States. ».

Art. 31. In the same law, an Article 77ter is inserted as follows:
« Art. 77ter. The Minister designates the authority that acts as a contact point responsible for receiving requests for the exchange of information or cooperation in execution of Article 77bis, § 1, b).
The Minister informs the European Commission as well as the other Member States of the European Economic Area thereof. ».

CHAPTER III. — Amendments to the Law of 6 April 1995 on the status of investment firms and their control, intermediaries, and investment advisors

Art. 32. The title of the Law of 6 April 1995 on the status of investment firms and their control, intermediaries, and investment advisors is replaced by the following title:
« Law of 6 April 1995 on the status and control of investment firms ».

Art. 33. Articles 36 to 39 of the same law are repealed.

Art. 34. Article 44 of the same law is replaced by the following provision:
« Art. 44. Without prejudice to the exceptions mentioned in Article 45, the provisions of this book apply to Belgian companies whose habitual activity consists of providing or offering to third parties one or more investment services on a professional basis and/or exercising one or more investment activities, as well as to foreign companies that exercise this activity in Belgium. These companies are hereinafter referred to as « investment firms ». In derogation of the first paragraph, the investment service referred to in Article 46, 1°, 8, may also be exercised by a market company that organizes a regulated market, provided that the CBFA has established that it complies with the provisions of Articles 57 to 64, 66, 67, 69, and 90. Articles 48, first paragraph, third sentence, 50, first paragraph, second sentence, 83 to 89, 92 to 94, and 110 and 111 apply. The CBFA establishes the list of these companies, indicating the MTFs operated, and publishes it, as well as any modifications made to it, on its website. Article 104 applies by analogy when the CBFA establishes that the aforementioned conditions are no longer met. ».

Art. 35. Article 45 of the same law is replaced as follows:

« Art. 45. § 1. This book does not apply to:
1° credit institutions referred to in Titles II to IV of the Law of 22 March 1993 on the status and supervision of credit institutions; for these institutions, Articles 55, §§ 1, 3 and 4, 77bis, 77ter and, regarding their investment services, Articles 79 and 80 nevertheless apply; 2° insurance undertakings within the meaning of Article 1 of Directive 73/239/EEC or Article 1 of Directive 2002/83/EC, as well as undertakings carrying out the reinsurance and retrocession activities referred to in Directive 64/225/EEC; 3° undertakings that provide investment services and activities exclusively for their parent undertaking, their subsidiaries, or another subsidiary of their parent undertaking; 4° persons who provide an investment service or activity as an incidental activity in the context of a professional activity, provided that this activity is subject to statutory or regulatory provisions or a professional code and that the provision of the service or activity is not excluded on that basis; 5° persons who do not provide investment services or investment activities, other than dealing for own account, unless they are market makers or systematic internalisers; 6° undertakings whose investment services and activities consist exclusively in the management of an employee participation scheme; 7° undertakings whose investment services and activities consist in providing both the services and activities referred to in 3° and those referred to in 6°; 8° members of the European System of Central Banks and other national bodies with a similar function, as well as other public bodies responsible for the management of public debt or involved in that management; 9° collective investment schemes and pension funds, regardless of whether coordinated provisions apply at Community level, as well as the depositaries and managers of these schemes; 10° persons who deal for own account in financial instruments or provide investment services in commodity-derived instruments or derivative contracts, as referred to in Article 2, first paragraph, 1°, j), of the Law of 2 August 2002, for the clients of their main business, provided that this is to be regarded as a secondary activity of their main business at group level and provided that this main business does not consist in providing investment services within the meaning of Article 46 or banking services within the meaning of the Law of 22 March 1993; 11° persons who provide investment advice while exercising another professional activity not covered by this law, provided that specific payment is not made for this advice provision; 12° persons whose main business consists in dealing for own account in commodities and/or commodity-derived instruments. This exception does not apply when the persons dealing for own account in commodities and/or commodity-derived instruments are part of a group whose main business consists in providing other investment services within the meaning of this law or banking services within the
meaning of the Law of 22 March 1993; 13° undertakings whose investment services and/or activities consist exclusively in dealing for own account on markets for financial futures or options or on other derivative markets and on markets in underlying financial instruments, solely for the purpose of hedging positions on derivative markets, or who deal or provide price formation for the account of other members of these same markets, and who are guaranteed by clearing members of these markets, where the responsibility for the execution of contracts concluded by these undertakings rests with clearing members of these same markets.

§ 2. The rights conferred in this book do not apply to the provision of services where acting as counterparty in transactions carried out by public bodies dealing with public debt or by members of the European System of Central Banks in the exercise of their tasks under the Treaty establishing the European Community and the Statutes of the European System of Central Banks and of the European Central Bank. »

Art. 36. In Article 45bis of the same law, the words “Article 45, 10°” are replaced by the words “Article 45, § 1, 13°”.

Art. 37. Article 46 of the same law is replaced as follows:

« Art. 46. For the purposes of this book and its implementing regulations, the following shall be understood:
1° investment services and activities: any of the following services or activities relating to financial instruments:

1. receiving and transmitting orders with respect to one or more financial instruments, including bringing together two or more investors thereby enabling them to effect transactions in financial instruments;
2. execution of orders for the account of clients;
3. dealing for own account;
4. portfolio management;
5. investment advice;
6. underwriting of financial instruments and/or placing of financial instruments with a firm commitment;
7. placing of financial instruments without a firm commitment;
8. operation of a multilateral trading facility;
   2° ancillary service: any of the following services:
9. safekeeping and administration of financial instruments for the account of clients, including custody and related services such as cash and/or collateral management;
10. granting of credits or loans to an investor to enable him to effect a transaction in one or more financial instruments, in which transaction the undertaking granting the credit or loan is involved;
11. advice to undertakings on capital structure, industrial strategy and related matters, as well as advice and services relating to mergers and acquisitions of undertakings;
12. foreign exchange services where these are connected with the provision of investment services;
13. investment research and financial analysis or other forms of general recommendation relating to transactions in financial instruments;
14. services related to the underwriting of financial instruments;
15. the aforementioned investment services and activities as well as ancillary services relating to the underlying asset of the derivatives referred to in Article 2, first paragraph, 1°, e), f), g) and j), of the Law of 2 August 2002, when provided in conjunction with the provision of investment and ancillary services.
    3° financial instrument: the instruments as defined in Article 2, first paragraph, 1°, of the Law of 2 August 2002; 4° securities: the securities as defined in Article 2, first paragraph, 31°, of the Law of 2 August 2002; 5° money market instruments: the instruments as defined in Article 2, first paragraph, 32°, of the Law of 2 August 2002; 6° execution of orders for the account of clients: acting to conclude agreements for the sale or purchase of one or more financial instruments for the account of clients; 7° dealing for own account: trading in one or more financial instruments with own capital, which results in the execution of transactions; 8° portfolio management: the management of portfolios on a discretionary basis for each client, in accordance with a mandate given by the clients, insofar as these portfolios contain one or more financial instruments; 9° investment advice: the provision of personalised recommendations to a client, either at his request or on the initiative of the investment firm, with respect to one or more transactions relating to financial instruments; »

10° a personalized recommendation: a recommendation presented as suitable for the person concerned, or based on an assessment of that person's personal circumstances, with the aim of inducing one of the following series of steps:
— the purchase, sale, subscription, exchange, redemption, holding, or firm commitment to purchase a specific financial instrument; — the exercise or non-exercise of the right conferred by a specific financial instrument to purchase, sell, subscribe, exchange, or redeem a financial instrument.
A recommendation is not considered personalized if it is distributed exclusively through distribution channels, within the meaning of Article 2, first paragraph, 26°, of the Law of 2 August 2002, or is intended for the public;

11° client: any natural or legal person for whom an investment firm provides investment services and/or ancillary services;

12° professional client: professional clients as defined in Article 2, first paragraph, 28°, of the Law of 2 August 2002;

13° non-professional client: a client who is not treated as a professional client;

14° multilateral trading facility (MTF): a multilateral system operated by an investment firm, a credit institution, or a market operator that brings together multiple buying and selling interests of third parties regarding financial instruments - within this system and according to non-discretionary rules - in such a way that a contract results, in accordance with Chapter II of the Law of 2 August 2002 or Title II of Directive 2004/39/EC;

15° "systematic internalizer": an investment firm that, in an organized, frequent, and systematic manner, executes client orders for its own account outside a regulated market or an MTF;

16° market maker: a person who continuously demonstrates on financial markets the willingness to trade for its own account and with its own capital by buying and selling financial instruments at prices set by him;

17° home Member State:
a. if the investment firm is a natural person, the Member State where that person has its head office; b. if the investment firm is a legal person, the Member State where its statutory seat is located;
c. if the investment firm, in accordance with its national law, has no statutory seat, the Member State where its head office is located;

18° host Member State: the Member State that is not the home Member State and where the investment firm has a branch or provides services and/or carries out activities;

19° competent authority: the CBFA or the foreign authority designated by each Member State in accordance with Article 48 of Directive 2004/39/EC, unless otherwise specified in the Directive;

20° credit institution: any institution referred to in Titles II to IV of the Law of 22 March 1993 on the status and supervision of credit institutions;

21° UCITS management company: a management company within the meaning of Part III of the Law of 20 July 2004 concerning certain forms of collective management of investment portfolios;

22° tied agent: any natural or legal person who, under the full and unconditional responsibility of only one investment firm on whose behalf he acts, promotes investment and/or ancillary services to clients or potential clients, receives and transmits client instructions or orders regarding investment services or financial instruments, places financial instruments and/or provides advice to clients or potential clients regarding these financial instruments or services;

23° branch: a business location that is not the head office and which constitutes a part without legal personality of an investment firm and provides investment services and/or carries out investment activities, and may also provide ancillary services for which the investment firm has obtained authorization; all business locations in the same Member State of an investment firm with its head office in another Member State are considered as a single branch;

24° qualified participation: the direct or indirect holding of a participation in an investment firm of at least 10% of the capital or of the voting rights, as referred to in the national provisions implementing Directive 2004/109/EC, or of a participation that implies the possibility of exercising significant influence on the management of the investment firm in which the participation is held;

25° parent undertaking: a parent undertaking within the meaning of Articles 1 and 2 of Council Directive 83/349/EEC concerning consolidated accounts;

26° subsidiary undertaking: a subsidiary undertaking within the meaning of Articles 1 and 2 of Directive 83/349/EEC, including any subsidiary of a subsidiary of a parent undertaking at the head of these undertakings;

27° control: control within the meaning of Article 1 of Directive 83/349/EEC;

28° close links: a situation where two or more natural or legal persons are connected by:
a. a participation, meaning the direct or indirect holding of at least 20% of the voting rights or the capital of an undertaking; or b. a control link, meaning the link existing between a parent undertaking and a subsidiary undertaking, in all cases as referred to in Article 1, paragraphs 1 and 2, of Directive 83/349/EEC, or a link of the same nature between a natural or legal person and an undertaking; any subsidiary of a subsidiary is also considered as a subsidiary of the parent undertaking at the head of these undertakings. A close link between two or more natural or legal persons is also considered to exist if these persons are permanently connected to the same person through a control link;

29° financial institution: all undertakings referred to in Article 3, § 1, 5°, first paragraph, of the Law of 22 March 1993 on the status and supervision of credit institutions; for the application of Articles 95 and 95bis of this Law, institutions for postal check and giro services, management companies for collective investment institutions, clearing houses referred to in Article 2, 17°, of the Law of 2 August 2002, and institutions whose business consists of the whole or partial operational management of services provided by such clearing houses are equated with financial institutions;

30° supervisory authority: the Commission for the Banking, Finance and Insurance;

31° market operator: a person or persons who manage and/or operate the business of a regulated market, where the regulated market itself may be the market operator;

32° regulated market: a multilateral system operated and/or managed by a market operator that brings together or facilitates the bringing together of multiple buying and selling interests of third parties regarding financial instruments - within this system and according to the non-discretionary rules of this system – in such a way that a contract results regarding financial instruments admitted to trading according to the rules and systems of the market, and which has been authorized and operates regularly, in accordance with the provisions of the Law of 2 August 2002 or Title III of Directive 2004/39/EC;

33° Directive 64/225/EEC: Council Directive 64/225/EEC of 25 February 1964 abolishing restrictions on freedom of establishment and freedom to provide services in respect of reinsurance and retrocession;

34° Directive 73/239/EEC: Council Directive 73/239/EEC of 24 July 1973 coordinating laws, regulations and administrative provisions relating to the taking up and pursuit of the business of direct insurance other than life assurance;

35° Directive 93/22/EEC: Council Directive 93/22/EEC of 10 May 1993 on the coordination of laws, regulations and administrative provisions relating to services in the field of securities investment;

36° Directive 2002/83/EC: Directive 2002/83/EC of the European Parliament and of the Council of 5 November 2002 concerning life assurance.

37° Directive 2004/39/EC: Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments, amending Directives 85/611/EEC and 93/6/EEC of the Council and Directive 2000/12/EC of the European Parliament and of the Council and repealing Council Directive 93/22/EEC;

38° Directive 2006/48/EC: Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006 on the taking up and pursuit of the business of credit institutions;

39° the Law of 2 August 2002: the Law of 2 August 2002 concerning the supervision of the financial sector and financial services. ».

Art. 38. Article 47 of the same Law is replaced as follows:

« Art. 47. § 1. Every investment firm governed by Belgian law that wishes to carry out its activities in Belgium must, before commencing them, obtain one of the following authorizations from the Commission for the Banking, Finance and Insurance Sector:

1° an authorization as a stockbroker;

2° an authorization as a portfolio management and investment advisory company.

§ 2. Without prejudice to the provisions on capital, stockbrokers may provide all investment services, investment activities and ancillary services referred to in Article 46.

§ 3. Portfolio management and investment advisory companies may provide the investment services referred to in Article 46, 1°, 1, 2, 4, 5 and 7, as well as the ancillary services referred to in Article 46, 2°, 3, 5 and 7.
To invest their own funds, they may hold positions in financial instruments, outside the trading book.

§ 4. No authorization as an investment firm may be granted for the sole provision of ancillary services. ».

Art. 39. Article 48 of the same Law is replaced as follows:

« Art. 48. Applicants shall indicate which of the authorizations referred to in Article 47 they wish to obtain and which of the investment services and activities referred to in Article 46 and other services referred to in Article 58, § 1, second and third paragraphs, they intend to provide or offer. They shall specify the financial instruments to which these services and activities relate. The application for authorization shall be accompanied by a programme of activities complying with the conditions laid down by the Commission for the Banking, Finance and Insurance Sector, in which, in particular, the nature and scale of the intended operations as well as the organizational structure of the firm and its close links with other persons are stated. Applicants must provide all information necessary to assess their application.

The first paragraph shall also apply to applications submitted by investment firms already holding an authorization, seeking to provide additional services and activities referred to in Article 46 for which they do not yet hold authorization. Articles 49 to 53 shall apply. ».

Art. 40. The following amendments are made to Article 50 of the same Law:

1° the first sentence of the first paragraph is replaced as follows:

« It shall give its decision on the authorization within six months of the submission of a complete application. »

2° the second paragraph is replaced as follows:

« Decisions on authorization shall specify the investment services and activities as well as the ancillary services that the firm is authorized to provide. ».

Art. 41. Article 51 of the same Law is replaced as follows:

« Art. 51. In view of the need for sound and prudent management of the firm, the Commission for the Banking, Finance and Insurance Sector may limit the authorization of the investment firm to certain services, activities or to certain financial instruments, as well as attach conditions to its authorization for the provision of certain services or activities relating to certain financial instruments. ».

Art. 42. Article 53, second paragraph, of the same Law is replaced as follows:

« The list of investment firms governed by Belgian law shall contain the following headings:

a. stockbrokers; b. portfolio management and investment advisory companies. ».

Art. 43. The following amendments are made to Article 54 of the same Law:

1° in the second paragraph, the words “Article 7, §§ 4 and 5, first paragraph of Directive 93/22/EEC” are replaced by the words “Article 15, §§ 2 and 3, of Directive 2004/39/EC”;

2° in the third paragraph, the words “Article 7, § 5, second and fourth paragraphs, of the same Directive” are replaced by the words “Article 15, § 3, second and third paragraphs, of the same Directive”.

Art. 44. The following amendments are made to Article 55 of the same Law:

1° in § 2, the words “Article 46, 1°, 1, b)” are replaced by the words “Article 46, 1°, 2”;

2° in § 3, the words “portfolio management companies” are replaced by the words “portfolio management and investment advisory company”;

3° in § 3, the words “Article 46, 1°, 3” are replaced by the words “Article 46, 1°, 4”;

4° § 4 is replaced as follows:

« § 4. Only the following companies and institutions may publicly use the words “investment adviser”, “investment advice” or any other term referring to this activity, in particular in their name, in the statement of their purpose, in their securities, values, documents or advertising:

a) portfolio management and investment advisory companies; b) stockbrokers; c) credit institutions; d) foreign investment firms operating in Belgium under Titles III and IV whose authorization covers the investment service referred to in Article 46, 1°, 5; e) brokers in banking and investment services as referred to in the Law of 22 March 2006 concerning the intermediation in banking and investment services and the distribution of financial instruments. »;

5° § 5 is repealed.

Art. 45. Article 58 of the same Law is replaced as follows:

« Art. 58. § 1. To obtain an authorization as an investment firm, the paid-up capital must amount to 250,000 EUR for stockbrokers and 125,000 EUR for portfolio management and investment advisory companies.

§ 2. Stockbrokers must have a paid-up capital of at least 730,000 EUR to:

— carry out transactions in financial instruments on own account; — underwrite issues of financial instruments; — place the instruments referred to in point 1; — operate a Multilateral Trading Facility (MTF); — act as depositary for financial instruments of insurance undertakings, for collective investment undertakings as well as for credit institutions insofar as the latter act on behalf of their clients.

For the purposes of this provision, the following shall not be considered as carrying out transactions on own account:

a) holding positions in financial instruments outside the trading book to invest own funds;

b) holding financial instruments on own account, provided that:

1° such positions result solely from the fact that the stockbroker is unable to exactly hedge a received order;

2° the total market value of such positions does not exceed 15% of the company’s initial capital;

3° the company complies with the requirements imposed by a regulation adopted under Article 90 for the control of solvency and the limitation of risks associated with the business of investment firms;

4° such positions are of an incidental and provisional nature and are strictly limited to the time necessary for the execution of the transaction in question.

§ 3. For existing institutions applying for an authorization as an investment firm, issue premiums, reserves and carried-forward profits shall be treated as capital for the purposes of § 1. ».

Art. 46. Article 59 of the same Law is replaced as follows:

« Art. 59. An authorization shall only be granted after the Commission for the Banking, Finance and Insurance Sector has been notified of the identity of the natural or legal persons who, directly or indirectly, hold a qualified participation. The notification must state the share of capital and the number of voting rights held by these persons. Where several persons hold the participation jointly or in concert, Articles 2, § 2 and 3, second sentence, of the Law of 2 March 1989 on the disclosure of major holdings in listed companies and on the regulation of public takeover bids shall apply, as well as the measures taken under that Law in application of those Articles. Article 2, § 1, of the same Law shall apply.

The authorization shall be refused where the Commission for the Banking, Finance and Insurance Sector, in view of the need for sound and prudent management of the investment firm, is not satisfied as to the suitability of the natural or legal persons referred to in the first paragraph.

Where close links exist between the investment firm and other natural or legal persons, the authorization shall only be granted if those links do not prevent the effective exercise of the supervisory functions of the Commission for the Banking, Finance and Insurance Sector.

The Commission for the Banking, Finance and Insurance Sector shall refuse the authorization if the legislative, regulatory or administrative provisions of a third country applicable to one or more natural or legal persons with whom the firm has close links, or difficulties in the application of those provisions, constitute an obstacle to the effective exercise of its supervisory functions. ».

Art. 47. Article 60 of the same Law is replaced as follows:

« Art. 60. § 1. The effective management of an investment firm must be entrusted to at least two natural persons; for the exercise of these functions, they must possess the required professional reliability and appropriate experience in order to ensure the sound and prudent management of the investment firm.

The Commission for the Banking, Finance and Insurance Sector shall not grant an authorization if it is not convinced that the persons who will effectively manage the business of the investment firm are known to be sufficiently reliable and experienced, or if there are objective and demonstrable reasons to assume that any proposed changes in the management of the firm would pose a threat to its sound and prudent management.

§ 2. Where a market operator applies for authorization to operate an MTF and the persons effectively managing the MTF are the same as those effectively managing the regulated market, those persons shall be deemed to comply with the requirements of § 1. ».

Art. 48. In the same law, an Article 62bis is inserted, reading as follows:

« Art. 62bis. § 1. Every investment firm shall establish appropriate policies and procedures to ensure compliance by the firm, its directors, effective managers, employees, associated agents, and authorized representatives with the statutory provisions concerning investment services and activities.

It shall develop appropriate rules regarding direct and indirect personal transactions in financial instruments carried out by the persons referred to in the first paragraph.

By Royal Decree, on the advice of the Banking, Finance and Insurance Commission, the King shall determine the relevant detailed rules and obligations. These rules and obligations may in particular concern:
— the relevant persons to whom these rules and obligations apply; — the personal transactions considered to be contrary to the law; — the modalities under which the relevant persons must notify their personal transactions to the investment firm; — the manner in which investment firms must retain records of personal transactions.

§ 2. Every investment firm shall take appropriate organizational and administrative measures to prevent that conflicts of interest concerning investment services and activities between the firm, its directors, effective managers, employees, and authorized representatives, or an affiliated firm, on the one hand, and its clients, on the other hand, or between its clients themselves, would harm the interests of the latter.

By Royal Decree, on the advice of the Banking, Finance and Insurance Commission, the King shall determine the relevant detailed rules and obligations. These rules and obligations may in particular concern the organizational rules to be observed to prevent conflicts of interest and when the investment firm produces and disseminates investment research.

§ 3. Every investment firm shall take appropriate measures to ensure the continuity of its investment services and activities.

§ 4. When an investment firm outsources operational tasks critical to the continuous and satisfactory provision of investment services and activities to third parties, it shall take appropriate measures to limit the operational risk associated therewith.

The outsourcing referred to in the first paragraph may not substantially impair the adequacy of the firm's internal control procedures or the ability of the Banking, Finance and Insurance Commission to verify whether the firm complies with its statutory obligations.

The Banking, Finance and Insurance Commission publishes a policy statement outlining its policy regarding the outsourcing of wealth management services for non-professional clients.

§ 5. Every investment firm shall keep records of all investment services provided and investment activities exercised to enable the Banking, Finance and Insurance Commission to verify whether the firm complies with the provisions of this law, in particular whether the firm fulfills its obligations towards its clients or potential clients.

§ 6. When an investment firm holds financial instruments belonging to its clients, it shall take appropriate measures to safeguard the rights of its clients in the event of its insolvency. It shall take appropriate measures to prevent financial instruments belonging to a client from being used for its own account, unless the client expressly consents.

When an investment firm holds funds belonging to a client, it shall take appropriate measures to safeguard the rights of its clients and to prevent funds belonging to the client from being used for its own account.

§ 7. The persons responsible for the effective management of the investment firm, if applicable the management committee, shall, under the supervision of the statutory governing body of the firm, take the necessary measures to ensure compliance with the provisions of §§ 1 to 6. The statutory governing body, if applicable via the audit committee, must verify at least once a year whether the investment firm complies with the provisions of these paragraphs, and shall take note of the appropriate measures taken.

The persons responsible for effective management, if applicable the management committee, shall report at least once a year to the statutory governing body, the Banking, Finance and Insurance Commission, and the statutory auditor on compliance with the provisions of the first paragraph and on the appropriate measures taken.

The information provided to the Banking, Finance and Insurance Commission and the statutory auditor shall be provided according to the modalities determined by the Commission.

The statutory auditor shall promptly report to the statutory governing body, if applicable via the audit committee, on the significant issues that have arisen during the exercise of its statutory audit mission.

§ 8. The Banking, Finance and Insurance Commission may establish detailed provisions of this article by regulation adopted in execution of Articles 49, § 3, and 64 of the Law of 2 August 2002 concerning the supervision of the financial sector and financial services. ».

Art. 49. Article 65 of the same law is replaced as follows:

« Art. 65. Investment firms must join the investor protection scheme referred to in Title V. ».

Art. 50. The following amendments are made to Article 66 of the same law:
1° § 2 is repealed;
2° § 3, which becomes § 2, is replaced as follows:

« § 2. When the own funds no longer reach the level established in § 1, the supervisory authority may set a deadline within which they must be brought back to the relevant level. ».

Art. 51. The following amendments are made to Article 67 of the same law:
1° § 1, first paragraph, is replaced as follows:

« Without prejudice to Article 12 and the national provisions implementing Directive 2004/109/EC of 15 December 2004 concerning transparency requirements, any natural or legal person who intends to acquire, directly or indirectly, a qualified participation in an investment firm shall notify the Banking, Finance and Insurance Commission thereof, stating the resulting participation. Any natural or legal person who intends to increase the extent of their participation such that the percentage of their voting rights or shares reaches or exceeds 10%, 20%, 33%, or 50%, or such that the investment firm becomes their subsidiary, is also required to notify the Banking, Finance and Insurance Commission. »; 2° § 4 is replaced as follows:

« § 4. Any natural or legal person holding a qualified participation in an investment firm who intends to reduce their qualified participation such that the percentage of their voting rights or shares falls below 10%, 20%, 33%, or 50%, or such that the investment firm ceases to be their subsidiary, must, at least one month prior to this disposal, inform the Banking, Finance and Insurance Commission of the fraction of capital and the number of voting rights involved in this disposal, and those remaining in their possession afterwards; as far as the identity of the purchaser(s) is known, they must inform the Banking, Finance and Insurance Commission thereof. »; 3° § 6, second paragraph, is replaced as follows:

« Investment firms shall also inform the Banking, Finance and Insurance Commission at least once a year of the names of shareholders and partners holding qualified participations, as well as the extent of the participations, as evidenced in particular by the data recorded at the annual general meeting of shareholders or partners, or by the information received applying the national provisions implementing Directive 2004/109/EC of 15 December 2004 concerning transparency requirements. »; 4° § 7, first paragraph, first sentence, in limine, is replaced as follows:

« When the Banking, Finance and Insurance Commission has reason to believe that the persons required to notify in accordance with § 1 could hinder the sound and prudent management of the investment firm, the Banking, Finance and Insurance Commission may, without prejudice to the other measures provided for in this law: ».

Art. 52. Article 68 of the same law is replaced as follows:

« Art. 68. At the request of the European Commission, the Commission for Banking, Finance and Insurance shall inform it of:
— any application for authorization by a direct or indirect subsidiary of a parent company subject to the law of a State that is not a member of the European Economic Area; — any intention to acquire a stake in an investment firm from the European Economic Area, presented to the Commission for Banking, Finance and Insurance by such a parent company pursuant to Article 67, § 1, which would make that institution its subsidiary.

The Commission for Banking, Finance and Insurance may limit or suspend the acquisition of a stake by direct or indirect parent companies subject to the law of a State that is not a member of the European Economic Area in the cases, under the conditions, and for the duration determined in Article 15, §§ 3 and 5, of Directive 2004/39/EC.

In the event of an acquisition or increase of a stake despite the measures taken by the supervisory authority in accordance with the second paragraph, Article 67, § 5, shall apply. ».

Art. 53. In Article 69 of the same law, the words “article 54, first paragraph, of the coordinated laws on commercial companies” and the words “the same coordinated laws” are replaced respectively by the words “article 522, § 1, first paragraph, of the Companies Code” and the words “the same Companies Code”.

Art. 54. In Article 70, paragraph 1, of the same law, amended by the laws of 3 May 2002 and 20 July 2004, the words “and article 62bis” are inserted between the words “62” and “may”.

Art. 55. In Article 75 of the same law, the words “and activities” are inserted between the words “Outside the services” and the words “that they”.

Art. 56. The following amendments are made to Article 77 of the same law:

1° § 2 is replaced as follows:

« § 2. The deposits referred to in the second paragraph of § 1 must be deposited with one or more entities having the status of:
1° central bank;
2° credit institution subject to the law of a member State of the European Economic Area; 3° credit institution subject to the law of a State that is not a member of the European Economic Area; 4° recognized money market fund.

The deposit obligation referred to in the previous paragraph does not apply to immediately callable funds, nor to funds callable within a maximum period of three business days, nor to funds provided to cover client obligations.

The entities referred to in the first paragraph may not assert rights based on their own claims against the stock exchange company that opened the account on the funds placed on a joint or individualized client account. Garnishment by the creditors of the stock exchange company on these accounts and their balance is also not permitted. »;

2° § 3 is replaced as follows:

« § 3. If insolvency proceedings are opened against the stock exchange company, the funds deposited, in application of § 2, on a joint client account or on an individualized account allowing the identification of individual clients, with the exception of deposits that could be reclaimed by their holders, shall be allocated by special privilege for the repayment of the deposits referred to in the second paragraph of § 1, excluding the deposits referred to in the second paragraph of § 2. »;

3° a § 4 is added, reading:

« § 4. The King may, after advice from the CBFA, establish the conditions and modalities that the deposits of funds by clients with stock exchange companies must meet, as well as the conditions and modalities for the investments that stock exchange companies may make with these funds. These conditions and modalities also cover the organization, the protection of, and

Art. 52. Article 68 of the same law is replaced by the following provision:

« Art. 68. The Banking, Finance and Insurance Commission shall inform the European Commission, at its request:
— of any application for authorization of a direct or indirect subsidiary of a parent company subject to the law of a State not a member of the European Economic Area; — of any project, of which the Banking, Finance and Insurance Commission is informed pursuant to Article 67, § 1, of taking a participation by such a parent company in an investment firm of the European Economic Area and which would make the latter its subsidiary.

The Banking, Finance and Insurance Commission may limit or suspend the taking of participation by parent companies, direct or indirect, subject to the law of a State not a member of the European Economic Area, in the cases and according to the conditions and duration determined in Article 15, §§ 3 and 5, of Directive 2004/39/EC.

In the event of acquisition or increase of a participation despite the measures taken by the supervisory authority in accordance with the second paragraph, Article 67, § 5, shall apply. ».

Art. 53. In Article 69 of the same law, the words “Article 54, first paragraph, of the coordinated laws on commercial companies” and the words “of the same coordinated laws” are replaced respectively by the words “Article 522, § 1, first paragraph, of the Companies Code” and the words “of the Companies Code”.

Art. 54. In Article 70, § 1, of the same law, amended by the laws of 3 May 2002 and 20 July 2004, the words “of Article 62” are replaced by the words “of Articles 62 and 62bis”.

Art. 55. In Article 75 of the same law, the words “and activities” are inserted between the words “the provision of services” and the words “authorized by their authorization”.

Art. 56. In Article 77 of the same law, the following modifications are made:
1° § 2 is replaced by the following provision:

« § 2. The deposits referred to in § 1, second paragraph, must be deposited with one or more entities having the quality 1° of central bank; 2° of credit institution subject to the law of a Member State of the European Economic Area; 3° of credit institution subject to the law of a State not a member of the European Economic Area; 4° of qualified money market fund.

The placement obligation referred to in the previous paragraph does not apply to cash immediately exigible or exigible within a maximum period of three business days, nor to cash given as cover for client commitments.

The entities referred to in the first paragraph may not, on the funds deposited on a global or individualized client account, assert a right resulting from their own claims on the stock exchange company that opened this account. Similarly, these accounts and their balance may not be subject to any garnishment by the creditors of the stock exchange company. »; 2° § 3 is replaced by the following provision:

« § 3. The cash deposited, in application of § 2, on a global client account or on an individualized account allowing the identification of individual clients, are, with the exception of deposits that could be recovered by their holders, allocated by special privilege for the repayment of the deposits referred to in § 1, second paragraph, other than those referred to in § 2, second paragraph, in the event of insolvency proceedings opened against the stock exchange company. »; 3° a § 4 is added, drafted as follows:

« § 4. The King may define, on advice of the CBFA, the conditions and modalities to which the deposits of funds made by clients with stock exchange companies must respond, and the conditions and modalities of the placements that stock exchange companies may effect concerning these funds. These conditions and modalities also cover the organization rules and the protection and information rules of the

29342 MONITEUR BELGE — 31.05.2007 — BELGISCH STAATSBLAD

information provision to clients regarding the receipt of these funds by the stock exchange companies and their investment with other intermediaries. ».

Art. 57. Article 77bis is inserted in the same law, reading:

« Art. 77bis. § 1. A stock exchange company or a credit institution may only use financial instruments belonging to a client in any manner if the client has previously given explicit consent for this. The client's financial instruments may only be used under the conditions with which the client agrees.

§ 2. The King may, after advice from the CBFA, establish further conditions and rules that the deposits of financial instruments by clients with stock exchange companies or credit institutions must meet, as well as further conditions and rules for the actions that stock exchange companies or credit institutions may perform regarding these financial instruments, particularly regarding the requirements concerning the consent referred to in § 1. The King may specifically establish the rules for granting the consent referred to in § 1. In addition, the King may also develop rules for the organization, the protection of, and information provision to clients regarding the receipt of these financial instruments by the stock exchange companies and credit institutions and their deposit with other intermediaries. ».

Art. 58. Article 77ter is inserted in the same law, reading:

« Art. 77ter. § 1. Stock exchange companies and credit institutions must keep all data and accounts necessary to enable them at any time to immediately distinguish the funds held for a client from the funds held for other clients, and from their own funds.

These data and accounts must be kept in such a way that they are always accurate and in particular reflect the financial instruments and funds held for clients.

Stock exchange companies and credit institutions must periodically check whether their internal accounts and data correspond with those of any third-party intermediaries holding these funds.

§ 2. The King may, after advice from the CBFA, establish further conditions and rules for the requirements referred to in § 1, as well as, more generally, requirements regarding the accounting organization and accounting rules for the deposit of funds with stock exchange companies or of financial instruments with stock exchange companies or credit institutions. ».

Art. 59. Article 78, second paragraph, 1°, of the same law is replaced as follows:

« 1° for credits and loans as referred to in Article 46, 2°, 2; ».

Art. 60. Article 79 of the same law is replaced as follows:

« Art. 79. § 1. Investment firms may not rely on intermediaries in banking and investment services established in Belgium who are not registered in accordance with Article 5, § 1, of the law of 22 March 2006.

If they wish to rely on a linked agent established in another member State of the European Economic Area, they must ensure that this person is registered in a dedicated public register in the relevant member State. They ensure themselves of the limitations applicable in the relevant member State to linked agents.

If the relevant member State where the agent is established has no legal framework allowing investment firms to appoint linked agents, the investment firm must ensure that the relevant intermediary is registered as an agent in banking and investment services in the Belgian register referred to in Article 5, § 1, of the law of 22 March 2006.

§ 2. Investment firms collaborating with a linked agent remain fully and unconditionally responsible for any act or omission of this linked agent acting on their behalf, in particular when they allow these linked agents to handle funds and financial instruments of clients.

Investment firms ensure that the linked agents with whom they collaborate indicate in what capacity they act before doing business with a client.

clients related to the receipt of these funds by the stock exchange companies and their placement with other intermediaries. ».

Art. 57. An Article 77bis, drafted as follows, is inserted in the same law:

« Art. 77bis. § 1. Any use by a stock exchange company or a credit institution of financial instruments belonging to a client requires the express and prior authorization of the latter. The use is limited to the conditions to which he has consented.

§ 2. The King may define, on advice of the CBFA, the conditions and modalities to which the deposits of financial instruments made by clients with stock exchange companies or credit institutions must respond, and the conditions and modalities of the acts that stock exchange companies or credit institutions may perform concerning these financial instruments, notably with regard to the authorization requirements provided for by § 1. More particularly, the King may define the modalities according to which the authorization provided for by § 1 must be given. The King may also determine the organization rules and the protection and information rules of clients related to the receipt of financial instruments by stock exchange companies and credit institutions and their deposit with other intermediaries. ».

Art. 58. An Article 77ter, drafted as follows, is inserted in the same law:

« Art. 77ter. § 1. Stock exchange companies and credit institutions must establish all the data and all the accounts necessary to allow distinguishing at any moment and without delay the assets held by a specific client from those held by other clients as well as from their own assets.

These data and accounts must be established in a manner ensuring their fidelity, and in particular their correspondence with the financial instruments and funds held by clients.

Stock exchange companies and credit institutions must perform regular reconciliations between their internal accounts and data and those of any third-party intermediary with whom these assets would be held.

§ 2. The King may define, on advice of the CBFA, the conditions and modalities of the requirements provided for in § 1 as well as, more generally, the requirements regarding accounting organization and accounting rules related to the deposits of funds made with stock exchange companies or of financial instruments made with stock exchange companies or credit institutions. ».

Art. 59. Article 78, second paragraph, 1°, of the same law is replaced by the following provision:

« 1° for credits and loans referred to in Article 46, 2°, 2; ».

Art. 60. Article 79 of the same law is replaced by the following provision:

« Art. 79. § 1. Investment firms may not rely on intermediaries in banking services and investment services established in Belgium who are not registered in accordance with Article 5, § 1, of the law of 22 March 2006.

If they wish to rely on a linked agent established in another Member State of the European Economic Area, they must ensure that this person is registered, in the Member State concerned, in a register provided for this purpose. They ensure themselves of the limitations applicable to linked agents in the State concerned.

If the Member State concerned in which the linked agent is established does not have a regime authorizing investment firms to rely on linked agents, the investment firm must ensure that the intermediary concerned is registered as an agent in banking services and investment services in the Belgian register referred to in Article 5, § 1, of the law of 22 March 2006.

§ 2. Investment firms collaborating with a linked agent assume the entire and unconditional responsibility for any action performed or any omission committed by this linked agent when acting on their behalf, in particular when they authorize these linked agents to handle funds and/or financial instruments of clients.

Investment firms ensure that the linked agents with whom they collaborate indicate in what capacity they act before dealing with a client.

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§ 3. Investment firms must supervise the activities of linked agents. They must take adequate measures to prevent any negative effects that the possible ancillary activities of the linked agents might have on the activities performed by these agents on behalf of the investment firm.

§ 4. The Banking, Finance and Insurance Commission may supplement the provisions of this article with a regulation adopted pursuant to Articles 49, § 3, and 64 of the Law of 2 August 2002. This regulation may in particular determine the obligations incumbent on investment firms collaborating with linked agents.

Art. 61. Article 80 of the same law is replaced as follows:

« Art. 80. The King may, after advice from the Banking, Finance and Insurance Commission, determine the obligations and prohibitions applicable to investment firms that, with regard to professional clients, are active in receiving and transmitting orders regarding one or more financial instruments where this activity is aimed at bringing these professional clients into contact with each other, thereby enabling a transaction to be concluded between them.

This decree may in particular determine the rules of conduct and incompatibility rules applicable to these firms, as well as the rules for the administrative and accounting processing of these transactions. »

Art. 62. Article 81 of the same law is replaced as follows:

« Art. 81. Investment firms to which a license has been granted must at all times comply with the conditions for the initial grant of the license.

They must inform the Banking, Finance and Insurance Commission of any significant change regarding the conditions for the initial grant of the license. »

Art. 63. Article 82 of the same law is replaced as follows:

« Art. 82. Stock exchange companies must inform the Banking, Finance and Insurance Commission without delay when they commence or cease systematic internalizer services. »

Art. 64. Article 83 of the same law is replaced as follows:

« Art. 83. § 1. Any investment firm wishing to establish a branch on the territory of another member state of the European Economic Area to perform there all or part of the investment services and/or investment activities or ancillary services listed in Article 46 that are permitted to it in Belgium, must notify the Banking, Finance and Insurance Commission thereof.

It must provide the following information:
1° the member states on whose territory it intends to establish a branch; 2° a program of activities indicating in particular the financial instruments offered, the investment services and/or investment activities as well as ancillary services offered, and the organizational structure of the branch, and stating whether the branch intends to use linked agents; 3° the address in the host member state where documents can be requested; 4° the names of the branch managers.

§ 2. The Banking, Finance and Insurance Commission may oppose the implementation of the project by decision based on the adverse effects of opening a branch on the administrative structure or the financial position of the investment firm.

§ 3. The decision of the Banking, Finance and Insurance Commission must, no later than three months after receipt of the complete file with all the information referred to in § 1, second paragraph, be brought to the attention of the investment firm by registered letter or letter with acknowledgment of receipt. If the Banking, Finance and Insurance Commission has not brought its decision to the attention of the investment firm within this period, it is deemed not to oppose the investment firm's project.

§ 4. This article also applies to the opening of branches in a State that is not a member of the European Economic Area, regardless of the planned activities for these branches. »

Art. 65. Article 84 of the same law is replaced as follows:

« Art. 84. When the branch's host country is a member of the European Economic Area, the Banking, Finance and Insurance Commission, unless it has reasons to doubt the adequacy of the administrative structure or the financial position of an investment firm given the intended activities, must within three months of receipt of all information communicate this information to the competent authority of the host member state and inform the investment firm concerned thereof.

The Banking, Finance and Insurance Commission must communicate to the competent authority of the host member state information regarding the recognized compensation system of which the investment firm is a member in accordance with Directive 97/9/EC.

Any changes to the information must be reported by the Banking, Finance and Insurance Commission to the competent authority of the host member state. »

Art. 66. Article 85 of the same law is replaced as follows:

« Art. 85. When the branch's host country is not a member of the European Economic Area, the Banking, Finance and Insurance Commission may agree with the supervisory authorities for investment firms in that country on rules for the opening and supervision of the branch as well as for the desired exchange of information, in compliance with Articles 74 to 77bis of the Law of 2 August 2002. »

Art. 67. Article 86 of the same law is replaced as follows:

« Art. 86. Any investment firm that has opened a branch abroad must, in the event of a change to the information provided in accordance with Article 83, § 1, second paragraph, notify the Banking, Finance and Insurance Commission in writing of this change at least one month before implementing the change.

If it concerns a branch opened in a Member State of the European Economic Area, the Banking, Finance and Insurance Commission must inform the competent authority of the host member state of this change.

Article 83, §§ 2 and 3, applies where appropriate, as does Article 84, depending on the changes to the information referred to in Article 83 or to the applicable investor protection scheme. »

Art. 68. Section VII of Chapter II of Title II of Book II of the same law is replaced as follows:

« Section VII – Free provision of services in a Member State of the European Economic Area

Art. 87. Any investment firm wishing for the first time to perform all or part of the investment services and/or investment activities or ancillary services listed in Article 46 on the territory of another member state of the European Economic Area that are permitted to it in Belgium, or wishing to expand the type of services or activities already performed there, must provide the Banking, Finance and Insurance Commission with the following information:
1° the member state in which it intends to perform activities; 2° a program of activities indicating in particular which investment services and/or investment activities as well as ancillary services it intends to perform, in which financial instruments it intends to provide services, and whether it plans to use linked agents on the territory of the member state where it intends to provide services.

If the investment firm intends to use linked agents, the Banking, Finance and Insurance Commission must, at the request of the competent authority of the host member state and within a reasonable period, communicate the identity details of the linked agents that the investment firm intends to use in that member state. The host member state may make this information public. »

Art. 88. In the case referred to in Article 87, the Commission for Banking, Finance and Insurance shall transmit this information within one month of receipt to the competent authority of the host Member State, whereupon the investment firm may commence providing the relevant investment services in the host Member State.

Art. 89. In the event of a modification of the information communicated pursuant to Article 87, the investment firm shall notify the Commission for Banking, Finance and Insurance in writing of the relevant modification, at least one month before the modification takes place.

The Commission for Banking, Finance and Insurance shall inform the competent authority of the host Member State of that modification. ».

Art. 69. The following amendments are made to Article 101 of the same law:

1° the first paragraph, point 4°, is supplemented as follows:

« d) decisions or facts relating to the investment firm which are likely to jeopardize its continuity; With regard to the cases referred to in points a) to d), they must also report to the Commission for Banking, Finance and Insurance any facts or decisions of which they have become aware in the course of carrying out one of the tasks mentioned in this article at an undertaking having close links with the investment firm where they perform the aforementioned task. »;

2° the first paragraph is supplemented as follows:

« 5° they report at least once a year to the Commission for Banking, Finance and Insurance on the adequacy of the arrangements put in place by the investment firm to safeguard client funds in application of Articles 77, 77bis and 77ter and of the implementing measures taken by the King under said article. ».

Art. 70. Article 102, first paragraph, of the same law is replaced as follows:

« The scheme defined in Articles 96 to 101 does not apply to investment firms which hold a license as a portfolio management company and investment advisory company. ».

Art. 71. In Article 104 of the same law, § 1, first sentence, in limine, is replaced as follows:

« § 1. When the Commission for Banking, Finance and Insurance finds that :
— an investment firm is not operating in accordance with the provisions of this Book and the decrees and regulations taken for their implementation; — the policy or financial position of an investment firm is likely to jeopardize the proper fulfillment of its obligations or does not offer sufficient guarantees for its solvency, liquidity or profitability; — the management structures, administrative or accounting organization or internal control of an investment firm show serious shortcomings; — an investment systemically and seriously breaches the code of conduct determined by and pursuant to Articles 26 to 28bis of the Law of 2 August 2002; — an investment firm obtained its license through false statements or in any other irregular manner, it sets the deadline within which this situation must be remedied. If after the end of this deadline the situation has not been remedied, the Commission for Banking, Finance and Insurance may : ».

Art. 72. In Article 105 of the same law, the reference to Directive « 93/22/EEC » is replaced by the reference to Directive « 2004/39/EC ».

Art. 73. The heading of Book III of the same law is replaced as follows: « Book III. Currency trading intermediaries ».

Art. 74. Book III, Titles I and II, as well as Article 138 of the same law are repealed.

Art. 75. In Article 148, § 3, of the same law, the words « and thereby in favor of the intermediary, in his own favor or in favor of third parties, gives a client's financial instruments in rollover or uses them in any way » are replaced by the words « and thereby in favor of the intermediary, in his own favor or in favor of third parties, uses client financial instruments without the consent required pursuant to Article 77bis, in any way ».

Art. 76. Article 163 of the same law is replaced as follows:

« Art 163. § 1. Stock exchange companies and portfolio management companies that hold a license as of 31 October 2007 retain this license for the investment services and activities and ancillary services corresponding to their existing license as included in Article 46, 1° and 2°.

If investment firms already provide the ancillary services referred to in Article 46, 2°, 5) and 7) before 1 November 2007, they may continue these services provided they inform the Commission for Banking, Finance and Insurance thereof.

§ 2. Order placement companies in financial instruments that hold a license before 1 November 2007 receive the license of portfolio management company and investment advisory company for the investment services and activities and ancillary services corresponding to their existing license as included in Article 46, 1° and 2°, provided they submit a request to the Commission for Banking, Finance and Insurance for this purpose.

§ 3. Investment advisory companies that meet the requirements of Articles 58, 60, 62, 62bis and 65 as of 31 October 2007 are registered on 1 November 2007 on the list of investment firms, section portfolio management and investment advisory companies, where their license relates to the investment service « investment advice », referred to in Article 46, 1°, 5), provided they submit a request to the Commission for Banking, Finance and Insurance for this purpose.

Investment advisory companies that do not meet the requirements of Articles 58, 60, 62, 62bis and 65 as of 31 October 2007 are not registered on the list of investment firms.
They may continue their business provided they obtain the status of investment firm applying Article 47 and following before 31 March 2008.

The provisions of Book II, with the exception of Articles 47, 53, 60 and 65, apply to these enterprises as long as they have not obtained a license. The enterprises referred to in this paragraph are included by the supervisory authority in a separate list, in accordance with the same rules as the list referred to in Article 53. In derogation of Article 55, they may use the designations relating to the business they exercise.

§ 4. Investment firms that hold a license as stock exchange company in financial instruments as of 31 October 2007 temporarily retain this license for the investment services and activities and ancillary services corresponding to their existing license as included in Article 46, 1° and 2°.
The license of these enterprises expires on 31 March 2008, unless they have obtained a license as stock exchange company, or as portfolio management company or investment advisory company before that date. As long as this has not happened, the provisions of Book II, with the exception of Articles 47, 53 and 58, remain applicable to these enterprises. The paid-up portion of the capital of these companies must amount to at least 125,000 EUR.

§ 5. Investment firms that hold a license as of 31 October 2007 whereby the operation of an MTF forms part of their activities are registered on the list of stock exchange companies holding a license for the operation of an MTF, provided they submit a request to the Commission for Banking, Finance and Insurance for this purpose.

§ 6. Market operators of regulated markets obtain, by operation of law, for the markets organized by them that were recognized on 31 October 2007 pursuant to Article 15 of the Law of 2 August 2002, the authorization referred to in Article 44, third paragraph, to operate an MTF as referred to in Article 46, 1°, 8, provided they submit a request to the Commission for Banking, Finance and Insurance for this purpose.

§ 7. Investment firms that provided investment services, activities and ancillary services before 1 November 2007 relating to the financial instruments referred to in Article 2, 1°, e) to j) of the Law of 2 August 2002 must, applying Article 81 of this law, inform the Commission for Banking, Finance and Insurance thereof before 31 January 2008. Article 51 applies to them. ».

Art. 77. Articles 164 to 167 of the same law are repealed.

Art. 78. Article 168 of the same law is replaced as follows:

« Art. 168. Belgian investment firms that, pursuant to Articles 83 and 87, provided before 1 November 2007 in one or more Member States of the European Economic Area investment services or activities or ancillary services referred to in Article 46, via a branch or by providing services, may continue these services and activities for the corresponding services and activities for which they have made a notification.

If these firms already provided before 1 November 2007 in one or more Member States of the European Economic Area the investment services and activities referred to in Article 46, 1°, 8) or the ancillary services referred to in Article 46, 2°, 5) and 7), they must notify the Commission for Banking, Finance and Insurance of this before 31 January 2008.

If these firms have already provided before 1 November 2007 in one or more Member States of the European Economic Area investment services, activities and ancillary services relating to the financial instruments referred to in Article 2, first paragraph, 1°, e) to j) of the Law of 2 August 2002, they must notify the Commission for Banking, Finance and Insurance of this before 31 January 2008. ».

Art. 79. Article 169 of the same law is repealed.

Art. 80. Article 172 of the same law is repealed.

Art. 81. Article 174 of the same law is repealed.

CHAPTER IV. — Amendments to the Law of 22 March 1993 on the status and supervision of credit institutions

Art. 82. The following amendments are made to Article 3 of the Law of 22 March 1993 on the status and supervision of credit institutions:

1° § 1 is supplemented as follows:

« 14° « systematic internaliser »: a credit institution that frequently, in an organised, regular and systematic manner, executes client orders for its own account outside a regulated market or an MTF. ».

2° § 2 is supplemented with the following paragraph:

« When the first paragraph refers to the financial instruments referred to in Article 2, first paragraph, 1° of the Law of 2 August 2002 concerning the supervision of the financial sector and financial services, the services and activities listed in Article 46, 1° and 2° of the Law of 6 April 1995 on the status and supervision of investment firms fall under the mutual recognition of this law. ».

Art. 83. An Article 20bis is inserted into the same law, reading as follows:

« Art. 20bis. § 1. Every credit institution establishes appropriate policies and procedures to ensure compliance with the legal provisions on investment services and activities by the institution, its directors, senior management, employees, associated agents and authorised representatives.

It develops appropriate rules for the direct and indirect personal transactions in financial instruments carried out by the persons referred to in the first paragraph.

On the advice of the Commission for Banking, Finance and Insurance, the King determines the relevant detailed rules and obligations. These rules and obligations may in particular relate to:

— the relevant persons to whom these rules and obligations apply; — the personal transactions that are deemed to be contrary to the law; — the modalities according to which the relevant persons must notify their personal transactions to the credit institution; — the manner in which credit institutions must keep records of personal transactions.

§ 2. Every credit institution takes appropriate organisational and administrative measures to prevent conflicts of interest regarding investment services and activities between the institution, its directors, senior management, employees and authorised representatives, or an associated undertaking, on the one hand, and its clients on the other, or between its clients themselves, from harming the interests of the latter.

On the advice of the Commission for Banking, Finance and Insurance, the King determines the relevant detailed rules and obligations. These rules and obligations may in particular relate to the organisational rules that must be observed when the credit institution produces and disseminates investment research.

§ 3. Every credit institution takes appropriate measures to ensure the continuity of its investment services and activities.

§ 4. When a credit institution outsources operational tasks that are critical for the continuous and satisfactory provision of investment services and activities, it takes appropriate measures to limit the associated operational risk.

The outsourcing referred to in the first paragraph may not substantially detract from the appropriateness of the institution's internal control procedures and from the ability of the Commission for Banking, Finance and Insurance to verify whether the institution complies with its legal obligations.

The Commission for Banking, Finance and Insurance publishes a policy statement setting out the policy it follows regarding the outsourcing of portfolio management services for non-professional clients.

§ 5. Every credit institution keeps records of all investment services and activities carried out by it to enable the Commission for Banking, Finance and Insurance to verify whether the institution complies with the provisions of this law, in particular whether the institution complies with its obligations towards its clients or potential clients.

§ 6. When a credit institution holds financial instruments belonging to its clients, it takes appropriate measures to safeguard the rights of its clients in the event of its insolvency.

It takes appropriate measures to prevent financial instruments belonging to a client from being used for its own account, unless the client expressly agrees.

§ 7. The persons responsible for the senior management of the credit institution, in the case the management committee, take under the supervision of the statutory governing body of the institution the necessary measures for compliance with the provisions of paragraphs 1 to 6. The statutory governing body, in the case the audit committee, must at least annually verify whether the credit institution complies with the provisions of these paragraphs, and take note of the appropriate measures taken.

The persons responsible for senior management, in the case the management committee, inform at least annually the statutory governing body, the Commission for Banking, Finance and Insurance and the approved auditor on the compliance with the provisions of the first paragraph and on the appropriate measures taken.

The information provided to the Commission for Banking, Finance and Insurance and the approved auditor is done according to the modalities determined by the Commission.

The approved auditor reports in a timely manner to the statutory governing body, in the case the audit committee, on the important issues that have come to light during the statutory audit mission.

§ 8. The Commission for Banking, Finance and Insurance may establish further provisions of this article by a regulation taken in implementation of Articles 49, § 3, and 64 of the Law of 2 August 2002 concerning the supervision of the financial sector and financial services. ».

Art. 84. An Article 46bis is inserted into the same law, reading as follows:

« Art. 46bis. Credit institutions must inform the Commission for Banking, Finance and Insurance without delay when they commence or cease systematic internaliser services within the meaning of Article 3, § 1, 14°. ».

Art. 85. Article 55, first paragraph of the same law is supplemented with a 5°, reading as follows:

« 5° they report at least once a year to the Commission for Banking, Finance and Insurance on the adequacy of the measures taken by the credit institution to safeguard client funds in application of Articles 77bis and 77ter of the Law of 6 April 1995 and of

articles 77bis and 77ter of the Act of 6 April 1995 and of the implementing measures taken by the King under these provisions. ».

Art. 86. Article 57, § 4 of the same Act is replaced as follows:

« Paragraphs 1 and 2 apply to credit institutions that systematically and seriously breach the conduct rules determined by and under Articles 26 to 28bis of the Act of 2 August 2002. ».

Art. 87. Article 75 is replaced as follows:

« Art. 75. § 1. When the Banking, Finance and Insurance Commission has clear and demonstrable reasons to believe that a credit institution operating on its territory through the free provision of services or possessing a branch on its territory violates obligations arising from provisions adopted in application of Directive 2004/39/EC and that the said provisions do not confer powers on the Banking, Finance and Insurance Commission, it shall inform the competent authority of the Member State of origin.

If, despite the measures taken by the competent authority of the Member State of origin or due to the inadequacy of these measures, the credit institution concerned continues to act in a manner clearly prejudicial to the interests of investors in Belgium or to the orderly functioning of the markets, the Banking, Finance and Insurance Commission may, after having informed the competent authority of the Member State of origin, take measures to protect investors or to preserve the good functioning of the markets. This concerns, with regard to branches, the measures referred to in Article 57, § 1, second paragraph, 1°, 2° and 3°, and § 2, of the Act; with regard to credit institutions operating by way of provision of services, it concerns the measures referred to in Article 57, § 1, second paragraph, 2°, and § 2. The European Commission is informed without delay of the adoption of these measures.

§ 2. When the Banking, Finance and Insurance Commission finds that a credit institution subject to another Member State of the European Economic Area operating in Belgium through a branch or by way of provision of services does not comply with the legal and regulatory provisions applicable in Belgium within the competence of the Commission, it shall call upon the credit institution to remedy the situation found within the period it determines.

If, at the end of this period, the situation has not been remedied, the Banking, Finance and Insurance Commission shall forward its observations to the supervisory authority of the home Member State of the institution.

§ 3. In the event of persistence of the breaches referred to in § 2 in the case of a branch, the Banking, Finance and Insurance Commission may, after having notified the supervisory authority referred to in § 2, take the measures provided for in Article 57, § 1, second paragraph, 1°, 2° and 3°.

Article 57, §§ 2 to 4, shall apply.

In the event of persistence of the breaches referred to in § 2 in the case of a credit institution operating by way of provision of services, the Banking, Finance and Insurance Commission may, after having notified the supervisory authority referred to in § 2, prohibit that institution from carrying out new operations in the country. It may limit the duration of validity of this prohibition and revoke it. Article 57, § 1, second paragraph, 2°, and § 2 shall apply to these decisions. This paragraph shall also apply in the cases referred to in Article 57, § 3.

§ 4. In urgent cases where the time limits of the procedure regulated in §§ 2 and 3 cannot be applied, the Banking, Finance and Insurance Commission may take all necessary protective measures to protect the interests of depositors and other clients of the branch. It shall inform, without delay, the Commission of the European Communities and the supervisory authorities of the home Member State of the institution and of the host Member States of other branches. The Banking, Finance and Insurance Commission shall modify or revoke these measures when the Commission of the European Communities so instructs it in accordance with European Community rules in this matter.

§ 5. The Banking, Finance and Insurance Commission may, at the request of the competent authorities in this regard, apply §§ 2 to 4 to a credit institution referred to in Article 65 or 66 when it has performed acts in Belgium contrary to legislative or regulatory provisions referred to in Article 69 or to legislative or regulatory provisions applicable for reasons of general interest in areas other than those referred to in Articles 68 and 71, first and second paragraphs.

§ 6. The Banking, Finance and Insurance Commission shall communicate to the Commission of the European Communities, according to the frequency determined by the latter, the number and nature of the measures taken in accordance with § 3. ».

CHAPTER V. — Modifications of the Act of 20 July 2004 concerning certain forms of collective management of investment portfolios

Art. 88. The following modifications are made to Article 3 of the Act of 20 July 2004 concerning certain forms of collective management of investment portfolios:

1° in 1°, a), ii), the words « organized market » are replaced by the words « MTF or regulated market »;

2° 6° is replaced as follows:

« 6° « multilateral trading facility (Multilateral trading facility – MTF) »: a multilateral system operated by an investment firm, a credit institution or a market operator that brings together multiple buying and selling interests of third parties regarding financial instruments – within this system and according to non-discretionary rules – in such a way that an agreement results in accordance with the provisions of Chapter II of the Act of 2 August 2002 or Title II of Directive 2004/39; »;

3° 24° is replaced as follows:

« 24° « Act of 6 April 1995 »: the Act of 6 April 1995 concerning the status of and supervision of investment firms; »;

4° a 32° is inserted, reading:

« 32° « Directive 2004/39/EC »: Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments, amending Council Directives 85/611/EEC and 93/6/EEC and Directive 2000/12/EC of the European Parliament and of the Council and repealing Council Directive 93/22/EEC; »;

5° a 33° is inserted, reading:

« 33° « Act of 22 March 2006 »: the Act of 22 March 2006 concerning the intermediation in banking and investment services and the distribution of financial instruments; ».

Art. 89. In Article 5, § 3, 3°, b), of the same Act, the words « professional provision of investment services » are replaced by the words « professional provision or offering of one or more investment services for third parties and/or the exercise of one or more investment activities ».

Art. 90. In Article 10, 3°, second paragraph of the same Act, the words « organized market » are replaced by the words « MTF or regulated market ».

Art. 91. In Article 41, § 1, 5°, a), of the same Act, the words « Article 46, 1°, 3 of the Act of 6 April 1995 » are replaced by the words « Article 46, 1°, 4 of the Act of 6 April 1995 ».

Art. 92. In Article 43 of the same Act, the words « appropriate management structure, nor the material, human and technical resources required for its own and intended activities appropriate administrative, accounting, financial and technical organization » are replaced by the words « appropriate policy structure, nor the material, human and technical resources required for its own and intended activities appropriate administrative, accounting, financial and technical organization and internal control ».

Art. 93. Article 62bis, first paragraph, f), of the same Act is replaced as follows:

« f) the portfolio management and investment advisory companies referred to in Book II, Title II of the Act of 6 April 1995 ».

Art. 94. In the same Act, Article 69 is replaced as follows:

« Art. 69. The King may, after advice from the CBFA and after open consultation, establish conduct rules that the collective investment undertaking must comply with in the exercise of its management functions referred to in Article 3, 9°, taking into account, where appropriate, the nature of the management function concerned. In this regard, it may impose in particular

collective investment, impose among other things the obligation to comply with Articles 27 and 28bis of the Law of 2 August 2002, and the implementing decrees. ».

Art. 95. Article 70 of the same Law is repealed.

Art. 96. Article 71 of the same Law is replaced as follows:

« Art. 71. The CBFA may, in individual cases and provided that it publishes its deviation policy in an appropriate, regular, and non-nominative manner, grant derogations from the provisions established by or pursuant to Article 27 or 28bis of the Law of 2 August 2002, if it considers that the relevant provisions are not adapted to the activities or to the situation of a collective investment scheme and provided that the scheme implements appropriate alternative measures that provide equivalent protection for security holders and for market integrity. ».

Art. 97. In Article 73, § 3, of the same Law, the words « organized market » are replaced by the words « MTF or regulated market ».

Art. 98. In Article 92, § 1, first paragraph, of the same Law, the words « its management structures » are replaced by the words « its policy structures ».

Art. 99. In Article 96, § 1, a), of the same Law, the words « its management structure » are replaced by the words « its policy structure ».

Art. 100. In Article 97, second paragraph, of the same Law, the words « organized market » are replaced by the words « MTF or regulated market ».

Art. 101. In Article 100, second paragraph, of the same Law, the words « organized market » are replaced by the words « MTF or regulated market ».

Art. 102. In Article 103, second paragraph, of the same Law, the words « organized market » are replaced by the words « MTF or regulated market ».

Art. 103. In Article 113, second paragraph, of the same Law, the words « organized market » are replaced by the words « MTF or regulated market ».

Art. 104. In Article 116, second paragraph, of the same Law, the words « organized market » are replaced by the words « MTF or regulated market ».

Art. 105. In Article 119, second paragraph, of the same Law, the words « organized market » are replaced by the words « MTF or regulated market ».

Art. 106. The following changes are made to Article 139 of the same Law:

1° in the 1°, the words « the investment service referred to in Article 46, 1°, 3 of the Law of 6 April 1995 » are replaced by the words « the investment services referred to in Article 46, 1°, 4 », and the words « for these companies, Articles 147, 153, § 1, fourth to sixth paragraphs, 153, § 2, 154, § 3, 168, 170 and 174 nevertheless apply » are replaced by the words « for these companies, Articles 147, 153, § 3, third paragraph, 153, § 4, third paragraph, 153, § 5, 154, § 3, 168, 170 and 174 nevertheless apply »;

2° in the 2°, the words « the investment service referred to in Article 46, 1°, 3 of the Law of 6 April 1995 » are replaced by the words « the investment services referred to in Article 46, 1°, 4 » and the words « Articles 147, 153, § 1, fourth to sixth paragraphs, 153, § 2, 154, § 3, 168, 170 and 174 are nevertheless applicable » are replaced by the words « Articles 147, 153, § 3, third paragraph, 153, § 4, third paragraph, 153, § 5, 154, § 3, 168, 170 and 174 are nevertheless applicable ».

Art. 107. Article 153 of the same Law is replaced as follows:

« Art. 153. § 1. The management company of collective investment schemes must have its own policy structure appropriate to its management tasks and investment services or intended management tasks and investment services.

By appropriate policy structure, there is to be understood in particular:

— a coherent and transparent organizational structure, including an appropriate separation of functions;

— a clearly defined, transparent and coherent set of responsibility allocations;

— appropriate procedures for the identification, measurement, management and monitoring of, and internal reporting on, the significant risks incurred by the management company of collective investment schemes as a result of its activities or intended activities.

§ 2. The management company of collective investment schemes must also have the material, human and technical resources required for an administrative, accounting, financial and technical organization that is its own and appropriate to its intended management tasks and investment services. It must in particular have control and security mechanisms regarding electronic information processing, and internal control. It takes into account the nature, size and complexity of these activities and the risks associated with them.

§ 3. The management company of collective investment schemes must organize an appropriate internal control, the operation of which must be assessed at least annually.

The internal control procedures include in particular a regime for the management of investments in financial instruments with a view to investing own funds.

These procedures must ensure, among other things, that each transaction involving a managed collective investment scheme or, where applicable, one of its compartments, can be reconstructed with regard to the origin and nature of the transaction, the parties involved, and the time and place where it took place, and that the assets of the managed collective investment schemes are invested, as the case may be, in accordance with the regulations of the common investment fund or the statutes of the collective investment scheme and the applicable legal and regulatory provisions.

With regard to its administrative and accounting organization, the management company of collective investment schemes must organize an internal control system that provides a reasonable degree of certainty regarding the reliability of the financial reporting process, so that in particular the annual accounts are in compliance with the applicable accounting regulations.

Every management company of collective investment schemes takes the necessary measures to be able to permanently have an appropriate independent internal audit function.

§ 4. The management company of collective investment schemes develops an appropriate integrity policy that is regularly updated. It takes the necessary measures to be able to permanently have an appropriate independent compliance function, to ensure compliance by the company, its directors, senior management, employees and agents with the legal rules relating to the integrity of its business.

A management company of collective investment schemes must have an appropriate independent risk management function.

Every management company of collective investment schemes takes appropriate organizational and administrative measures to prevent conflicts of interest that arise:

— between itself, including its directors, senior management, employees and agents, or an affiliated company, on the one hand, and its clients on the other;

— between itself, including its directors, senior management, employees and agents, or an affiliated company, on the one hand, and the managed collective investment schemes on the other;

— between its clients themselves;

— between the managed collective investment schemes themselves;

— between its clients and the managed collective investment schemes;

— that would harm the interests of the managed collective investment schemes or of its clients.

By advice of the CBFA, the King determines the relevant detailed rules and obligations. These rules and obligations may in particular relate to the organizational rules to be observed to prevent conflicts of interest and when the management company of collective investment schemes produces and disseminates investment research. ».

§ 5. The management company of collective investment undertakings must apply a risk management method specifically tailored to the category of authorized investments of the managed collective investment undertakings, enabling it to control and measure at all times the risk associated with the positions and their contribution to the overall risk profile of the portfolio of the managed collective investment undertakings or, where applicable, to the overall risk profile of the different compartments of those collective investment undertakings.

The management company of collective investment undertakings must use a method that allows for an accurate and independent valuation of the OTC derivatives in the portfolio or, where applicable, in the portfolio of the different compartments, of each managed collective investment undertaking. It must notify the CBFA, according to the detailed rules and periodicity established by the CBFA by regulation adopted pursuant to Article 64 of the Law of 2 August 2002, of the types of financial derivatives, the underlying risks, the quantitative limits, and the methods chosen to estimate the risks inherent to the derivatives for each managed collective investment undertaking or, where applicable, for the different compartments of these managed collective investment undertakings.

§ 6. The management company of collective investment undertakings must be organized in such a way that, in addition to the information disclosed in the prospectus and in the annual and semi-annual reports of the managed collective investment undertakings, it can provide supplementary information upon request of the security holders regarding the quantitative limits applicable to the risk management of the managed collective investment undertakings, the methods used to comply with these limits, and recent developments in the field of risks and returns of the assets forming the category of authorized investments for which the managed collective investment undertakings have opted.

§ 7. The CBFA may, where applicable by regulation adopted pursuant to Article 64 of the Law of 2 August 2002, further determine what is meant by an adequate governance structure, adequate internal control, adequate independent internal audit function, adequate independent compliance function, and adequate risk management function.

§ 8. Every management company of collective investment undertakings keeps records of the investment services it has provided to enable the CBFA to verify whether the company complies with the provisions of this law, in particular whether the company fulfills its obligations towards its clientele.

§ 9. The management company of collective investment undertakings takes appropriate measures to ensure the continuity of its management tasks and investment services.

§ 10. Without prejudice to the powers of the statutory governing body regarding the determination of general policy as defined by the Companies Code, the persons responsible for the effective management of the management company of collective investment undertakings, where applicable the management committee, under the supervision of the statutory governing body, take the necessary measures for compliance with the provisions of §§ 1 to 6, 8, and 9, and the provisions of Article 154, § 5.

Without prejudice to the provisions of the Companies Code, the statutory governing body of the management company of collective investment undertakings must, where applicable through the audit committee, control at least annually whether the company complies with the provisions of §§ 1 to 6 and the first paragraph of this section, and it takes note of the appropriate measures taken.

The persons responsible for effective management, where applicable the management committee, report at least annually to the statutory governing body, the CBFA, and the approved auditor on the compliance with the provisions of the first paragraph of this section and on the appropriate measures taken.

The information provided to the CBFA and the approved auditor is done so according to the modalities determined by the CBFA.

§ 11. The approved auditor reports in a timely manner to the statutory governing body, where applicable through the audit committee, on the significant issues that have come to light during the statutory audit mission, in particular regarding serious shortcomings in the financial reporting process.

§ 12. The CBFA may establish further provisions of this article by regulation adopted pursuant to Articles 49, § 3, and 64 of the Law of 2 August 2002 concerning the supervision of the financial sector and financial services.

Art. 108. The following amendments are made to Article 154 of the same law:

1° in § 1, 5°, a), the words “Article 46, 1°, 3, of the Law of 6 April 1995” are replaced by the words “Article 46, 1°, 4, of the Law of 6 April 1995”;

2° the article is supplemented with the following paragraph:

Ҥ 5. When a management company of collective investment undertakings outsources operational tasks of critical importance for the continuous and satisfactory provision of investment services to its clients to third parties, it takes appropriate measures to limit the operational risk associated with this.

The outsourcing referred to in the first paragraph may not substantially detract from the adequacy of the company’s internal control procedures or from the ability of the CBFA to verify whether the company fulfills its legal obligations.

The CBFA may establish further provisions of this article by regulation adopted pursuant to Articles 49, § 3, and 64 of the Law of 2 August 2002 concerning the supervision of the financial sector and financial services.”.

Art. 109. Article 169 of the same law is replaced as follows:

“Art. 169. § 1. The King may, after advice from the CBFA and after public consultation, establish rules of conduct that management companies of collective investment undertakings must comply with when exercising management tasks as referred to in Article 3, 9°, taking into account, where applicable, the nature of the management task concerned. In this regard, he may impose on management companies of collective investment undertakings, among other things, the obligation to comply with the rules determined by and pursuant to Articles 27 and 28bis of the Law of 2 August 2002.

§ 2. Articles 27 and 28bis of the Law of 2 August 2002, and the decrees adopted for its implementation, apply to management companies of collective investment undertakings regarding the exercise of investment services referred to in Article 3, 10°.

§ 3. Every management company of collective investment undertakings establishes appropriate policies and procedures to ensure compliance by the management company of collective investment undertakings, its directors, effective management, employees, and agents with the provisions of §§ 1 and 2 and the decrees adopted for their implementation.

It develops appropriate rules for direct and indirect personal transactions in financial instruments carried out by the persons referred to in the first paragraph.

On the advice of the CBFA, the King determines the relevant further rules and obligations. These rules and obligations may in particular relate to:

— the relevant persons to whom these rules and obligations apply; — the personal transactions considered contrary to the law; — the modalities according to which the relevant persons must notify their personal transactions to the management company of collective investment undertakings; — the manner in which management companies of collective investment undertakings must keep records of personal transactions.”.

Art. 110. Article 172 of the same law is repealed.

Art. 111. Article 173 of the same law is replaced as follows:

“Art. 173. The CBFA may, in individual cases and provided that it publishes its deviation policy appropriately, regularly, and in a non-nominative manner, grant derogations from the provisions established by or pursuant to Article 27 or 28bis of the Law of 2 August 2002, if it considers that the provisions in question are not adapted to the activities or to the situation of a management company of collective investment undertakings and on condition that this management company takes appropriate alternative measures that provide equivalent protection for the interests of the collective investment undertakings it manages, as well as for the clients and for the integrity of the market.”.

Art. 112. Article 197 of the same law is supplemented as follows:

« § 9. Paragraphs 1 to 5 apply to management companies of collective investment undertakings that, in the provision of investment services referred to in Article 3, 10°, systematically and seriously breach the rules of conduct set out in Articles 27 and 28bis of the Law of 2 August 2002 and the decrees taken for its implementation.

Paragraphs 1 to 5 apply to management companies of collective investment undertakings that, in the exercise of management tasks referred to in Article 3, 9°, systematically and seriously breach the rules of conduct established by and under Article 169, § 1. ».

Art. 113. In Article 202, § 1, a), of the same law, the word 'management structure' is replaced by the word 'policy structure'.

Art. 114. In Article 204, § 2, b), first paragraph, of the same law, the word 'management structure' is replaced by the word 'policy structure'.

Art. 115. In Article 231, first paragraph, of the same law, the words 'the investment services referred to in Article 46, 1°, 1, a) and b) and 3 of the Law of 6 April 1995 and the ancillary services referred to in Article 46, 2°, 6 of the Law of 6 April 1995' are replaced by the words 'the investment services referred to in Article 46, 1°, 1, 2, 4 and 5 of the Law of 6 April 1995'.

Art. 116. In the same law, Article 241 is repealed.

CHAPTER VI. — Amendments to the Law of 22 March 2006 concerning intermediation in banking and investment services and the distribution of financial instruments

Art. 117. Article 4, 1°, b), of the Law of 22 March 2006 is replaced as follows:

« b) the investment services and activities as well as the ancillary services, within the meaning of Article 46, 1°, 1, 5 and 7 of the Law on investment services; ».

Art. 118. Article 5, § 1, fourth paragraph, of the same law is replaced as follows:

« Investment firms or credit institutions subject to the law of another Member State of the European Economic Area may, in accordance with the provisions of Directive 2004/39/EC concerning financial instruments, make use in Belgium of intermediaries registered in application of the first paragraph who act in their name and on their behalf.

Agents in banking and investment services subject to the law of another Member State of the European Economic Area who are established in Belgium and who, in accordance with the aforementioned Directive, act in the name and on behalf of an investment firm are assimilated to a branch within the meaning of Article 46, 23° of the Law on investment services. The provisions laid down by and under Article 110 of the same law apply.

An application for registration in the register referred to in the first paragraph may be made by a related agent established in another Member State of the EEA to which a Belgian investment firm or credit institution wishes to have recourse in application of Article 79 of the Law on investment services, if the Member State concerned in which the related agent is established does not have a legal scheme allowing investment firms or credit institutions to appoint related agents. The King may determine specific rules for this category of agents. »

Art. 119. Article 11, § 1, second paragraph, of the same law is replaced as follows:

« Furthermore, he must comply with the following obligations:

1° the investment services referred to in Article 4, 1°, b) are limited to securities and to participation rights in a collective investment undertaking;

2° he may at no time receive and keep funds and financial instruments, either in cash or on account, or be in a debit position with regard to the saver or investor; he may not have a mandate or power of attorney on account of his clients, except for members of his household, nor keep or keep in safe custody values or account books of his clients. ».

Art. 120. Article 12, § 1, second paragraph, of the same law is replaced as follows:

« An intermediary in banking and investment services may additionally:

— not mediate regarding the ancillary service referred to in Article 46, 2°, 1) of the Law on investment services;

— in derogation of the first paragraph, offer for his own account investment advice services referred to in Article 46, 1°, 5) of the Law on investment services, regarding securities and participation rights in a collective investment undertaking;

The King may impose specific organizational rules as well as rules of conduct on intermediaries in banking and investment services who offer investment advice services for their own account. ».

CHAPTER VII. — Amendments to the Law of 16 June 2006 on the public offer of investment instruments and the admission of investment instruments to trading on a regulated market

Art. 121. Article 9 of the Law of 16 June 2006 on the public offer of investment instruments and the admission of investment instruments to trading on a regulated market is supplemented as follows:

« 8° 'multilateral trading facility': a Multilateral Trading Facility or MTF within the meaning of Article 2, first paragraph, 4° of the aforementioned Law of 2 August 2002. ».

Art. 122. In Article 15 of the same Law of 16 June 2006, the following amendments are made:

1° in § 2, the words 'market(s) which He determines and which are accessible to the public, but are not regulated markets' are replaced by the words 'multilateral trading facility(ies) which He determines';

2° in § 3, the words 'on a foreign market which is accessible to the public, but is not a regulated market' are replaced by the words 'on a multilateral trading facility established in another Member State of the European Economic Area or a trading facility established outside the European Economic Area, which is accessible to the public and fulfills a comparable function to a regulated market or a multilateral trading facility'.

Art. 123. In Article 46 of the same Law of 16 June 2006, the following amendments are made:

1° in the 2°, the words 'on certain Belgian markets accessible to the public, but not regulated markets or compartments of such markets, whereby those investment instruments, markets or market compartments are determined by Him' are replaced by the words 'on Belgian multilateral trading facilities or compartments of such facilities, whereby those investment instruments, multilateral trading facilities or compartments are determined by Him';

2° in the 3°, the words 'on certain foreign markets accessible to the public, but not regulated markets or compartments of such markets, whereby those investment instruments, markets or market compartments are determined by Him' are replaced by the words 'on multilateral trading facilities established in another Member State of the European Economic Area or on trading facilities established outside the European Economic Area, which are accessible to the public and fulfill a comparable function to a regulated market or a multilateral trading facility, or on compartments of such facilities, whereby those investment instruments, trading facilities or compartments are determined by Him'.

Art. 124. In Article 56, f), of the same Law of 16 June 2006, the words 'companies for placing orders in financial instruments' are replaced by the words 'companies for asset management and investment advice'.

CHAPTER VIII. — Transitional and final provisions

Art. 125. The markets recognized as regulated markets on 31 October 2007 in application of Article 3 of the Law of 2 August 2002 are automatically authorized for the application of Article 3 of the Law of 2 August 2002, as amended by this decree.

Art. 126. Article 51 of the Law of 1 April 2007 on public takeover bids enters into force on the day it is published in the Belgian State Gazette.

Art. 127. This decree enters into force on 1 November 2007, except for Articles 27 and 126 which enter into force on the date of publication of this decree.

However, Article 15, fourth paragraph of the Law of 2 August 2002 remains applicable until the entry into force of the provisions concerning financial information transposing Directive 2004/109/EC of the European Parliament and of the Council of 15 December 2004 concerning transparency requirements regarding information on issuers whose securities are admitted to trading on a regulated market and amending Directive 2001/34/EC. Article 15, sixth paragraph, of the same law remains applicable by analogy.

However, Article 15, fifth paragraph, of the Law of 2 August 2002 remains applicable until the entry into force of the provisions concerning shareholding transparency transposing Directive 2004/109/EC of the European Parliament and of the Council of 15 December 2004 concerning transparency requirements regarding information on issuers whose securities are admitted to trading on a regulated market and amending Directive 2001/34/EC. Article 15, sixth paragraph, of the same law remains applicable by analogy.

The King determines the entry into force of Articles 117, 119 and 120.

Art. 128. Our Minister, responsible for Finance, is charged with the implementation of this decree.

Given in Brussels, 27 April 2007.

ALBERT

By the King:

The Vice-Prime Minister and Minister of Finance,

D. REYNDERS

FEDERAL PUBLIC SERVICE FINANCES

N. 2007 — 2184 [C − 2007/03274]

21 MAY 2007. — Ministerial Decree concerning the costs for the replacement of damaged bearer bonds of the state debt

The Vice-Prime Minister and Minister of Finance,

Having regard to the Law of 24 July 1921 concerning the involuntary loss of possession of bearer titles, last amended by the Law of 22 March 1995, particularly Article 31;

Having regard to the Ministerial Decree of 12 December 2002 concerning the costs for the replacement of damaged bearer bonds of the State Debt;

Having regard to the complete abolition of the Stamp Duties Code as of 1 January 2007, whereby the use of fiscal stamps disappears;

Having regard to the opinion of the Financial Inspection given on 17 July 2006;