Belgian Financial Advisor Fined €40,000 by FSMA
- Patrimonia reached a settlement with the regulator after breaching advertising laws
Patrimonia, a family office based in Belgium, was fined 40,000 euros ($47,700) this Tuesday. The small firm made a Settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term with the Financial Services and Markets Authority (FSMA), a Belgian regulator.
In 2015, FSMA informed Patrimonia that its website did not comply with Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term surrounding advertising. The regulator claims Patrimonia, despite having FSMA authorization, provided misleading information that did not fit with regulatory provisions relating to insurance and advertising.
The company duly made changes to its website that it thought would be in line with FSMA regulation. In April 2017, however, the regulator said that Patrimonia was still not complying with the required regulatory standards.
FSMA claims that most consumers make decisions as to whether or not purchase a financial product or service based on advertising. As such, they believe adverts should clearly state the advantages and disadvantages of a financial product.
Overly harsh?
As punitive as this law may seem (it’s hard to imagine any other industry - bar alcohol and tobacco - that would be subject to such legislation), it is also not that well defined. Patrimonia has just discovered that what appeared to them to clearly show the disadvantages of their products, was not viewed by FSMA in the same light.
The regulator says that Patrimonia’s content could be construed as misleading or inaccurate. They added that, although Patrimonia does not sell products on its website, it still had to conform to advertising regulation.
Companies that collaborate with FSMA in their investigation can agree on a settlement with the regulator. This appears to be what has happened with Patrimonia as the company finds itself 40,000 euros out of pocket.
Patrimonia, a family office based in Belgium, was fined 40,000 euros ($47,700) this Tuesday. The small firm made a Settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term with the Financial Services and Markets Authority (FSMA), a Belgian regulator.
In 2015, FSMA informed Patrimonia that its website did not comply with Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term surrounding advertising. The regulator claims Patrimonia, despite having FSMA authorization, provided misleading information that did not fit with regulatory provisions relating to insurance and advertising.
The company duly made changes to its website that it thought would be in line with FSMA regulation. In April 2017, however, the regulator said that Patrimonia was still not complying with the required regulatory standards.
FSMA claims that most consumers make decisions as to whether or not purchase a financial product or service based on advertising. As such, they believe adverts should clearly state the advantages and disadvantages of a financial product.
Overly harsh?
As punitive as this law may seem (it’s hard to imagine any other industry - bar alcohol and tobacco - that would be subject to such legislation), it is also not that well defined. Patrimonia has just discovered that what appeared to them to clearly show the disadvantages of their products, was not viewed by FSMA in the same light.
The regulator says that Patrimonia’s content could be construed as misleading or inaccurate. They added that, although Patrimonia does not sell products on its website, it still had to conform to advertising regulation.
Companies that collaborate with FSMA in their investigation can agree on a settlement with the regulator. This appears to be what has happened with Patrimonia as the company finds itself 40,000 euros out of pocket.