FSMA conducts consultation on financial planning

20 June 2012

FSMA is conducting a public consultation on the introduction of a new legal status for financial planners and on the rules of conduct that apply to financial planning. The new status sets out the conditions for being authorised to act as an independent financial planner.

"The introduction of a legal status for independent financial planners comes as a response to the parliamentary recommendations that came out of the financial crisis and the government agreement, and fits in with the recent reform of the architecture of financial supervision. The new status should help enhance protection for savers and investors", noted Jean-Paul Servais, the chairman of the Financial Services and Markets Authority (FSMA).

The FSMA has prepared, from a technical standpoint, a set of draft legal texts on the status of independent financial planner. A financial planner gives personalised advice on investments or strategies for investing in financial products (ranging from savings accounts to the most sophisticated investment instruments). Their advice is intended to help with asset planning in order to prepare for one’s retirement or succession, or to build up savings or acquire real estate.

The draft texts lay down the conditions that must be met in order to obtain the status of independent financial planner. The conditions include:

• Independence. The status may not be combined with any other financial profession or with any other profession that might give rise to conflicts of interest. An independent financial planner may not receive commissions and may be remunerated only by his or her clients.
• Organisation of the firm. In order to obtain an authorisation, various conditions must be met with regard to the reliability, competence and appropriate experience of the senior managers, minimum capital, appropriate organisation and professional liability insurance coverage.

Moreover, independent financial planners are subject to rules of conduct based on the MiFID rules. Regulated undertakings (credit institutions, investment firms, etc.) must also comply with the MiFID rules when providing financial planning services.

Press release

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