Belgium Law Requires Cypriot Binary Options Brokers to Publish ProspectusesBy Annie Reona | Tuesday, July 14th, 2015
Belgium’s Financial Services Authority (FSMA) has requested that any Cypriot binary options brokers who want to offer their services in Belgium must publish documents which are meant to help investors to make more informed decisions when it comes to investment options.
The regulator in Cyprus stated that “in the event that a CIF is offering cross-border investment services relating to binary options in the territory of Belgium, such CIF is urged to immediately proceed to the issuance of a Prospectus which must be approved by the FSMA, as per the provisions of the Belgian PO Law, or immediately cease offering such services in the territory of Belgium.”
The Cyprus Securities and Exchange Commission (CySEC) made a special announcement in order to bring up the Belgian Law of 16 June 2006. Also known as the Belgian PO Law, this law covered the subjects of investment instruments to trading on regulated markets and public offers of investment instruments.
The law states that any investment instruments that are offered publicly within Belgium must be offered along with the publication of a Prospectus. Binary options are covered within the law, and the law considers a public offering one that involves over 150 investors. Any brokers offering their services online are therefore bound by this law, including international services.
Any binary options brokers covered under this law who are residing in Cyprus were recently informed of this obligation in regards to any Belgian clients they may have. CySEC responded to the request made by FSMA by telling their binary options brokers that they must include a prospectus for every offer of services made to clients in Belgium.
According to the Belgian law, the prospectus is required to have “all information which, according to the particular nature of the issuer and of the investment instruments offered to the public or admitted to trading, is necessary to enable investors to make an informed assessment of the assets and liabilities, financial position, profit and losses, and prospects of the issuer and of any guarantor, and of the rights attaching to such investment instruments.”Published in News & Analysis