BELGIUM Law and Practice Contributed by: Joan Carette, Philippe De Prez and Thomas Derval, Simont Braun
3.3 Issues Relating to Best Execution of Customer Trades The best execution rule of MiFID II and its trans - posing regulations applies equally to robo- advisers, as the services provided by these are qualified as investment services (see 3.1 Requirement for Different Business Models ). An issue that might arise about the fulfilment of best execution by robo-advisers advising consumers and businesses could be the mal - functioning of the automated tool (eg, through manipulation or mistakes resulting from being too fast or too focused on some aspects). For consumers in particular, issues may arise as to the processing of (personal) information and the (mis)understanding of the advice by the con - sumer. In any case, the investment services providers remain ultimately responsible for the execution of the orders and cannot hide behind the use of robo-advisory technology to avoid their liability vis-à-vis investors. 4. Online Lenders 4.1 Differences in the Business or Regulation of Fiat Currency Loans Provided to Different Entities Legal Regimes Applicable to Loans/Credit Schematically, there are four different legal regimes applicable to loans/credit in Belgium. Mortgage credit offered to consumers by CIs or other licensed lenders Mortgage credit is subject to a highly regulated regime in Book VII of the Code of Economic Law (CEL) – see Articles VII.123–147/38 (rules of con - duct) and VII.148–216 (prudential requirements).
agreement) to regulated firms licensed to pro - vide investment services. In such a case, the company offering the tool does not need to be licensed – the licence of its client (eg, a bank or an investment firm) suffices. Outside financial regulations, robo-advisers may also fall within the scope of the AI Act. Depending on their technical characteristics, robo-adviser technology may qualify as an AI system under the AI Act. In such case, both developers of the tool and the financial entity making use of the tool may be subject to additional requirements. The AI Act will enter into application in different stages, with the first stages being applicable as of 2 February 2025 and full application foreseen on 2 August 2026. Finally, and to be complete, it should also be noted that in some instances, robo-advisers are used to automate transactions on unregu - lated assets, which may fall outside the scope of the MiFID II regulatory framework. In these instances, robo-advisers may find themselves in a regulatory blind spot. When such services reach a certain size, it is highly advisable to dis - cuss them with the regulators. 3.2 Legacy Players’ Implementation of Solutions Introduced by Robo-Advisers The emergence of robo-advisers has put pres - sure on legacy players, as they are expected to soon become a core product for many investors. As a result, multiple legacy players now inter - nally manage their own robo-advisers, or totally or partially outsource their investment services to a robo-adviser (which in this case has to be regulated) or enter into a licence agreement with a technical provider in order to use the robo- adviser as a purely technical tool.
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