Belfius bank has been fined €1 million for breaching regulations while issuing state bonds to the public last year.
The Financial Services and Markets Authority (FSMA) has concluded that Belgium's second-largest bank committed a series of violations when distributing state bonds between 4 April and 31 May last year.
"The publication of a prospectus approved by the FSMA was required," the regulator stated in a press release. "Subscriptions of savings bonds had exceeded the threshold of €75 million, below which a prospectus exemption is applicable."
The case reveals "shortcomings in Belfius Bank's organisation, as well as a lack of legal instinct and a legal risk culture within some of its departments," it added.
The bonds were also advertised without authorisation from the FSMA.
Repeat offender
On top of the €1 million fine, FSMA has called on the bank to "strengthen its board by adding a new member with strong legal expertise". An executive committee will advise and assist the board from 1 January next year.
This is the third-largest settlement on record for the FSMA. In November 2013, the 'Compagnie du Bois Sauvage' reached a settlement of over €8 million with the regulator regarding the sale of 3.6 million Fortis shares before the financial group's dismantlement decision became public.
In 2019, Tavares paid the FSMA €1.4 million for insider trading related to the acquisition of stocks from the Transics group.
The financial punishment for Belfius is severe because the bank is a repeat offender: in 2021, it paid a fine of €300,000 for the same violation it was found to have committed last year.
