A royal decree dated 25 December 2017 (the “Royal Decree”) further implements the packaged retail and insurance-based investment products (“PRIIPs”) regulation in Belgium by specifying the procedure for notifying a key information document (“KID”) to the Belgian authority (the “FSMA”). The following four points highlight the main requirements for (Belgian and foreign) manufacturers and, in some cases, sellers marketing PRIIPs in Belgium:
1. When ?
The notification obligation applies as soon as PRIIPs are distributed in Belgium (with some exemptions such as private placements). The KID must be notified prior to such distribution. For PRIIPs sold as part of a public offering in Belgium, the KID must be notified five business days before the public offering launch or, if earlier, along with the marketing materials submitted for the FSMA’s approval. If the KID is amended between its notification and the distribution or public offering, it must be re-notified.
2. Who needs to notify the KID to the FSMA?
A manufacturer marketing PRIIPs in Belgium must notify the KID to the FSMA. Even if the product is sold through intermediaries, it remains the manufacturer’s responsibility to take care of the notification to the FSMA. Also, the manufacturer can still use a third party to comply with the notification obligation, but will always remain responsible. However, PRIIP sellers will be responsible for notifying the KID if they have no link with the manufacturer and sell those products independently. Also note that merely providing advice regarding a PRIIP does not place a notification obligation on that adviser.
The KID must be written in French, Dutch or English and, if distributed as part of a public offering, must be written in the language of the marketing documents.
The Royal Decree entered into force on 1 January 2018. The notification obligation applies to marketing PRIIPs in Belgium from that date, and, for PRIIPs currently being marketed, the manufacturer (or seller, as the case may be) has three months from 1 January 2018 to notify the KID to the FSMA.