The objective of the new regime is to increase individual liability for senior management of banks and banking and investment service agents and to increase public confidence in the Belgian banking sector. 

A similar regime is already in place in the Netherlands as of 2015. Although referred to as the Dutch banking oath, this obligation does not only apply to banks, but also a number of other financial undertakings, such as insurers, payment institutions and financial service providers. A financial undertaking which is in scope of the obligation, has to ensure that all individuals who work under its responsibility and whose activities may materially affect the risk profile of the company or who are directly engaged in the provision of financial services take an oath or make an affirmation in respect of the execution of their function within the financial sector ethically and with care. Each individual is obligated to take the oath or make the affirmation within three months of their commencement of the work for the financial undertaking. 

The banker’s oath has been formalised through a combination of law and royal decrees. On 15 January 2024 the law amending the banking oath and ethical rules was published in the Belgian Official Gazette, setting out the general principles and obligations. It was supplemented by a Royal Decree of 28 January 2024 and by FSMA's regulation of 8 May 2024. Finally, on 16 June 2024, a royal decree was published, approving the FSMA's regulation on the bankers’ oath. 
 
The new disciplinary system entered into force on 15 January 2025 for persons subject to fit & proper assessment and senior managers in credit institutions. On 15 July 2026, it will enter into force for the other banking service providers in scope.

Who is concerned? 

The banker's oath applies to :

  • Belgian and foreign credit institutions established in Belgium, which includes credit institutions governed by the law of another EEA Member State which have established a branch in Belgium and/or use tied agents established in Belgium to provide investment services and/or carry out investment activities (but not entities providing services in Belgium under the free provision of services); and
  • banking and investment services agents acting in the name and on behalf of such credit institutions.

The banking oath applies only to persons who are banking service providers within the entities in scope, namely:

(i) persons subject to fit and proper assessment;
(ii) senior managers, i.e. natural persons who assume responsibility for or exercise control over the persons referred to in point (iv); 
(iii) banking and investment services agents who are natural persons; and
(iv) any other persons working for credit institutions or banking and investment services agents who are directly involved in banking activities or provide banking services within the Belgian territory.

This wide application ensures that the ethical standards supported by the new regime permeate all levels of governance.

How does it work ?

The legal framework establishes three primary obligations:

  • The obligation to take the banking oath: in-scope professionals are required to take the oath upon assuming their roles. The declaration can be administered during onboarding processes or at designated ceremonies within institutions.
  • The obligation to comply with disciplinary rules known as "individual rules of conduct" based on concepts of honesty, integrity, competence and professionalism, as well as the obligation to act in the interests of customers and to treat them fairly; taking the oath is not a one-time act; it implies a continuous obligation to act ethically in all professional activities.
  • The obligation for the in-scope persons to submit, prior to his/her appointment, an attestation confirming that the absence of professional ban. 

The location for taking the oath will depend on the functions held by the relevant banking service provider. Fit and proper individuals will take the oath at the FSMA. The FSMA will hold a minimum of six sessions per year and will publish the dates and registration details on its website. Other banking service providers will take the banking oath at the relevant entity (or its Belgian branch) on behalf of which they operate. The organisation of the oath-taking process must comply with the required solemnity and the six-month deadline to take the oath (as from the date of entry into force of the new regime or the date of appointment of the in-scope individual if later).

Supervision by the FSMA

The Financial Services and Markets Authority (FSMA) plays a central role in overseeing the implementation of the banking oath. Key responsibilities of the FSMA include:

  • Monitoring compliance: ensuring that all eligible professionals take the oath and adhere to the individual rules of conduct.
  • Guidance and support: publishing detailed guidelines and frequently asked questions (Q&A) to help institutions understand and implement the oath effectively.
  • Enforcement: Investigating instances of non-compliance and taking appropriate disciplinary sanctions (warning, reprimand and professional ban). A central register of disciplinary sanctions and professional prohibitions has been set up.
  • Collecting complaints. Any person who considers that ethical rules have been breached may file a complaint with the FSMA. 

The FSMA's disciplinary actions will not affect the prudential supervisory powers of the ECB and the NBB, especially regarding fit and proper requirements. 

Q&A Published by the FSMA

To facilitate the preparation and adoption of the banking oath, the FSMA has published a comprehensive Q&A on their website, addressing common questions and concerns, to guide the various stakeholders in the sector.

Topics covered in this additional clarification include:

  • The scope of the banking oath: clarifications on who must take the oath.
  • Obligations of banking service providers: the procedures for taking the oath, how the list of banking service providers should be submitted to the FSMA etc.
  • Disciplinary procedure: insights into the FSMA’s approach to supervision and enforcement.
  • Complaints: who can file a complaint about the banking oath and how.

At the same time, the FSMA has made available to credit institutions a model oath certificate for oaths that will need to be taken from 15 January 2025.
 
The Q&A serves as a valuable resource for financial institutions and professionals, ensuring clarity and transparency in the implementation process.