The Belgian Financial Services and Markets Authority, FSMA, has reached a settlement agreement with Keytrade Bank, requiring it to pay €250,000 for “non-compliance with conduct rules,” the regulator announced on Wednesday.
The issue stemmed from a technical problem between 27 December 2023 and 13 March 2024, during which tens of thousands of transactions were affected. Keytrade Bank was unable to determine whether certain financial instruments were appropriate, failed to request necessary information on clients’ knowledge and experience, did not notify them if instruments were deemed unsuitable, the FSMA stated.
It also provided clients with incorrect information, the regulatory body added.
Keytrade Bank voluntarily implemented corrective measures, including selling complex financial instruments acquired during the affected period by customers whose knowledge and experience had not been previously assessed. It also compensated clients for any losses incurred.
The FSMA noted that additional remedial actions were taken by Keytrade Bank following its recommendations.
In addition to the €250,000 payment, the settlement agreement stipulates that the event woud be publicly disclosed on the FSMA’s website.
