Belgium Financial Services and Markets Authority warns against unregistered insurance sub-agents and reiterates prior registration requirement

The Belgium Financial Services and Markets Authority has issued a newsletter after repeatedly finding that self-employed insurance sub-agents were carrying out insurance distribution activities without first being entered in the register of insurance intermediaries. It reiterates that prior registration is a legal prerequisite and that insurance brokers and insurance agents are prohibited from using unregistered insurance sub-agents or collaborating with other unregistered insurance intermediaries. The update stresses that insurance distribution is defined broadly and covers activities such as advising on insurance contracts, proposing or concluding contracts, preparatory work, and assistance with contract management or claims. Performing just one of those activities is enough to fall within the regime. Submitting an application to the FSMA is not sufficient to start operating. A sub-agent may begin activities only after the FSMA management committee has approved the application, the applicant has received written confirmation, and the registration appears in the public register. The same rule applies to sub-agents in training, including those who still lack six months of relevant practical experience. The FSMA also clarifies that being listed by a responsible firm as a person in contact with the public does not replace a sub-agent's own registration. Where insurance distribution has started without prior registration, the activity must stop immediately. A registration application may then be submitted for possible regularization, with the FSMA assessing the specific circumstances and placing particular weight on transparency and honesty. The responsible firm must verify a sub-agent's registration before the relationship starts and continue that check throughout the collaboration. Breaches can lead to criminal and administrative sanctions for both the candidate sub-agent and the responsible firm, and can also result in a negative fit and proper assessment. The FSMA notes that it has already issued negative assessments in some cases.