#beLex: FSMA – Reminder regarding the limits of insurance intermediary status

#beLex: FSMA – Reminder regarding the limits of insurance intermediary status
In a recently published “Intermediary Newsletter,” the FSMA reminds insurance intermediaries of the limits on the activities they may conduct based on their registration.

Registration as an insurance intermediary naturally allows for the performance of intermediation activities involving insurance products. It also permits the provision of financial planning services—specifically advice regarding the structuring, protection, legal organization, or transfer of a client’s assets, tailored to their needs and objectives (as expressed in relation to an insurance product).

However, the FSMA points out that this registration does not constitute a general authorization to market financial or investment products. In particular, an insurance intermediary may not:

present themselves as an “independent” financial planner without holding the required authorization;
provide investment advice regarding financial instruments or engage in portfolio management activities;
directly market funds that are not embedded within a “Branch 23” life insurance policy;
participate in certain offers of investment instruments or market certain alternative investments.
Furthermore, an intermediary may not cite their FSMA registration to lend credibility to activities not covered by that registration.

Although not directly related to the points above, the FSMA also reminds Belgian intermediaries that they are prohibited from offering insurance products from companies not authorized to operate in Belgium.

Engaging in unauthorized activities may result in criminal or administrative sanctions, but can also call into question the intermediary’s professional standing and, where applicable, lead to the revocation of their registration.