Fintech 2025

BELGIUM Law and Practice Contributed by: Joan Carette, Philippe De Prez and Thomas Derval, Simont Braun

9. Regtech 9.1 Regulation of Regtech Providers Regtech providers are not specifically regulated (except eID and trust service providers which are regulated by the eIDAS Regulation). How - ever, as they serve industry participants with products/tools facilitating compliance with pru - dential regulations (eg, EU Directive 2009/138/ EC of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Rein - surance ( “Solvency II” ) or the Belgian Law of 25 April 2014 on the legal status and supervision of credit institutions (the “Banking Law” ) or rules of conduct (eg, MiFID II, the Insurance Distribution Directive, PSD2 and AMLD5)), regtechs need to have a comprehensive understanding of these regulations. As of 17 January 2025, regtechs will also indi - rectly be subject to DORA, which requires regu - lated entities to impose specific obligations on their ICT service providers. In addition, some regtech providers may fall directly under the scope of DORA as CTPPs. 9.2 Contractual Terms to Assure Performance and Accuracy Contractual Arrangements Contractual arrangements between regtech pro - viders and regulated entities are, as such, not regulated. However, services offered by regtech providers often fall within the scope of the notion of “outsourcing” or “ICT service” , triggering spe - cific obligations for regulated entities, including specific mandatory provisions in the agreement between the regtech and the regulated entity (eg, terms to assure performance and accuracy).

Law of 4 April 2014 relating to insurances (the “Insurance Law” ). Insurtechs as Business Introducers Mere business introducers do not need any licence or registration but must carefully design their business model as they can provide only strictly limited services, thereby reducing their potential added value. Additional Rules and Obligations Whichever distribution and operation structure they opt for, insurtechs will need to comply with the rules of conduct contained in the Insurance Law, as well as the circulars and recommenda - tions issued by the NBB and the FSMA. Furthermore, the provision of online services, as well as B2C provision of services, leads to the application of additional obligations, mostly organised by the CEL. 8.2 Treatment of Different Types of Insurance In addition to general common principles, each type of insurance (life, annuities, property, etc) is subject to its own set of regulations under the Insurance Law. Industry players often tend to specialise in one or more specific markets. At the very least, they tend to focus either on life or non-life products. The Law of Control prohibits the provision of both life and non-life services to insurance com - panies (Article 222). Investment and savings life insurance products are among the most regulated. Their distribution leads to the application of strict diligence obliga - tions (appropriateness and suitability tests).

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