On Jul. 12, BEL CB issued communication on external functions.
BEL CB issued communication on the exercise of external functions by managers and persons responsible for independent control functions of regulated financial companies.
Document dated Jul. 12, 2022, received on Jul. 13, 2022 due to a fixed feed.
Follows BEL GVT Feb. 2021 decree to approve external functions rule, see #130626.
Prudential supervision laws require managers and persons responsible for independent control functions of financial institutions to devote necessary time to their functions within these institutions, and regulate other functions outside these institutions.
This communication recalls the principles and scope of the legal and regulatory provisions on external functions and clarifies the practical consequences thereof.
Scope
Applies to credit institutions governed by Belgian law and branches established in Belgium of credit institutions governed by the law of a third country.
Stockbroking firms governed by Belgian law and branches established in Belgium of stockbroking firms governed by the law of a third country.
Insurance, reinsurance companies governed by Belgian law and branches established in Belgium of insurance, reinsurance companies governed by the law of a third country.
Custodian banks governed by Belgian law; institutions supporting a central securities depository governed by Belgian law and branches established in Belgium of such institutions governed by the law of a third country.
FHCs governed by Belgian law, insurance holding companies governed by Belgian law.
Communication Content
Qualitative limitations to external functions applicable to all financial institutions.
Quantitative limitations applicable only to Banking Act's significant credit institutions.
General and special rules for exercise of external functions by institution managers.
Internal rules/procedures of notification of managers' external functions to BEL CB.
Supervision framework by the financial institutions and by the supervisory authority.
Effectiveness
Repeals and replaces cir PPB 2006-13-CPB-CPA on the exercise of external functions.
Repeals and replaces external guideline for art 62 of the Banking Act only for Banking Act's significant credit institutions and for (mixed) financial holding companies.
The communication is applicable with immediate effect.
May 2024 New External Module on Portal
On May 29, 2024, BEL CB issued addendum to the external functions communication.
This addendum amends section 3.2.2 of communication and section 5:10 of BEL CB's Fit & Proper Manual for technical reasons, which meant Feb. 2024 plans abandoned.
The addendum is to inform financial institutions of the Nov. 18, 2024 launch of a new notification and reporting channel for external functions by senior managers.
This channel will constitute a new external functions module on BEL CB Supervision.
In effect it will replace the outdated eManex platform, which will be decommissioned.
BEL CB advise that the information contained in the eManex platform will be automatically migrated to the external functions module in Sep. and Oct. 2024.
Financial institutions will also be able to validate each year the completeness and accuracy of the information provided to BEL CB on external functions, via the module.
BEL CB state that validation should take place for the first time in the course of 2025.
Regulators
BEL CB
Entity Types
B/D; Bank; BHC; Corp; Depo; IHC; Ins
Reference
Com NBB_2022_19 Addendum, 29/5/2024; PR, 7/12/2022; Com NBB_2022_19, 7/12/2022
