Amicable settlement related to the MiFID directive
Wednesday, July 29, 2020 — Degroof Petercam has reached an amicable settlement with the FSMA in the context of proceedings relating to past events and concerning the MiFID regulation. This regulation aims in particular at ensuring the protection of investors. This out-of-court settlement provides for the payment of a lump sum of 800,000 euros.
In this settlement, the FSMA acknowledges that Degroof Petercam has taken all necessary steps to comply with MiFID requirements by strengthening its internal policies, systems, procedures and operational teams. The FSMA also underlines that the bank has taken the necessary measures with regard to its customers.
The MiFID regulations require banks to periodically review their clients' risk profile and their investment knowledge and experience to ensure that their investment advice and services are in line with their client's current situation. Although this procedure is now organized and scrupulously respected by Degroof Petercam, a delay had initially been encountered for organizational reasons in implementing the new processes and in processing certain information. In this context and in consultation with the FSMA, individual customers of Degroof Petercam who might have suffered damage as a result of this delay were offered compensation. 102 individual customers were concerned by this measure.
The conclusion of the amicable settlement with the FSMA is in line with Degroof Petercam's desire to put the past behind it and look to the future. The protection of customers remains a top priority for Degroof Petercam and contributes to meeting their needs in the best possible way.