BRUSSELS (Reuters) – Belgium’s Financial Services and Markets Authority (FSMA) has fined state-owned retail bank Belfius 1 million euros ($1.1 million) for offering bonds to the public without an FSMA-approved prospectus, the regulator said on Thursday.
WHY IT’S IMPORTANT
The fine shows FSMA’s commitment to ensuring banks operating in Belgium adhere to regulatory guidelines, particularly in the public offering of financial products.
BY THE NUMBERS
The FSMA fined Belfius Bank 1 million euros as part of a settlement agreement. It marked the second time the bank has been penalised for such an infraction. The previous settlement, agreed June 29, 2021, amounted to 300,000 euros.
It is the third highest fine the FSMA has ever handed out.
KEY QUOTE
“Belfius Bank committed several breaches in the offering of bonds to the public from 4 April to 31 May 2023,” the FSMA said.
Belfius said it would not comment on the settlement.
WHAT’S NEXT
As part of the settlement, Belfius Bank has committed to strengthening its legal risk management and will add a new member with a strong legal background to its board of directors.
Until this is implemented, the bank will establish an executive committee from Jan. 1, 2025, to assist and advise the board on its strategy and policy implementation.
($1 = 0.9024 euros)
(Reporting by Charlotte Van Campenhout; Editing by Mark Potter)
