1. Regulation & FinTech Innovation

2. Regulation, a “necessary evil”?
FinTech Belgium Meetup 16 02 2016

3. Who are our regulators?NationalBank
• License
institutions
• Supervise
institutions
• Financial
solidity
• Economic
stability
FSMA
• Financial
Markets
• Investment
Instruments
• Rules of
Conduct
• Protecting Fin.
Consumers
FPSEconomy
• Approval of
model credit
agreements
FinTech Belgium Meetup 16 02 2016

4. How to handle regulation?
How to
handle
regulation?
Be well prepared & advised
Do you actually need a license?
Always think about the future
A license is only the beginning…
Use your license as a brand
FinTech Belgium Meetup 16 02 2016

5. FinTech Ecosystem
FinTech Belgium Meetup 16 02 2016

6. FinTech Ecosystem
FinTech Belgium Meetup 16 02 2016

7.  Am I receiving deposits from the public?
 Am I making a public offer?
 Am I granting a consumer loan?
 Am I providing a payment service?
 Am I giving investment advise?
5 key questions to ask…yourself !
FinTech Belgium Meetup 16 02 2016

8. Am I receiving deposits from the public?
bank deposits crowdfunding
?=?
Banking Monopoly
Credit Institution License (BNB)
Exemption (FSMA):
No free disposal of the funds
Issuing invest. instruments in exchange
Comply with public offer rules
FinTech Belgium Meetup 16 02 2016

9. Am I making a public offer?
Communication on investment instruments
(debt & equity)
containing sufficient information to allow an investment decision
Offer ˂ 100 KEUR Offer ˂ 300 KEUR Offer + 300 KEUR
Private offer Public offer Public offer
No Prospectus
Obligation
Prospectus
Obligation (FSMA)
Max 1.000
EUR / investor
+ 1.000 EUR
/ investor
FinTech Belgium Meetup 16 02 2016

10. Am I granting a consumer loan?
Regulatory consequences:
 Consumer Credit
Provider (FSMA)
 Model Contract approval
(FPS Economy)
FinTech Belgium Meetup 16 02 2016

11. Am I providing a payment service?
Payment Services:
 Placing & withdrawing cash from accounts
 Executing payment services
 Issuing / acquiring payment instruments
 Money remittance
 Account information services (2017)
 Payment initiation services (2017)
FinTech Belgium Meetup 16 02 2016

12. Account information service provider
FinTech Belgium Meetup 16 02 2016

13. Payment Initiating Service Provider
FinTech Belgium Meetup 16 02 2016

14. Am I providing a payment service?
Payment Services:
 Placing & withdrawing cash from accounts
 Executing payment services
 Issuing / acquiring payment instruments
 Money remittance
 Payment initiation services (2017)
 Account information services (2017)
Possible regulatory consequences:
 Payment Service Institution (BNB)
 Electronic money institution (BNB)FinTech Belgium Meetup 16 02 2016

15. Am I providing investment advice?
Possible regulatory consequences:
 Investment firm license (FSMA)
 Subject to MiFID rules of conduct (FSMA)
Yes, if you are making a recommendation…
on a transaction of financial instruments…
which is presented as suitable… based on the person’s circumstances…
more than just a general publicity…
to a (potential) investor or to his agent
FinTech Belgium Meetup 16 02 2016

16. Approaching investment advice
Providing regulated investment advice
Easyvest is acting as their agent (FSMA)
Leleux Associated Brokers
Investment firm license (BNB)
Investment firm
license (FCA – UK)
Random example based on public information
FinTech Belgium Meetup 16 02 2016

17. Don’t be afraid of it
Take it in careful consideration
Anticipate its consequences
Use it to your advantage
Take Away
Regulation…
FinTech Belgium Meetup 16 02 2016

18. How can we help you?
Get in touch
www.simontbraun.eu