According to Article 108, paragraph 2, of the Law of
December 4 1990 on financial transactions and financial
markets, a Belgian investment undertaking has to be managed in
the sole interest of the participants.
This provision has been executed by the Royal Decree of
March 4 1991 concerning certain collective investment
undertakings, which provides that, in order to obtain
registration by the Banking and Finance Commission, a
management/investment company has to demonstrate that it has an
adequate organization - for administrative, accounting,
financial and technical purposes - guaranteeing an autonomous
management of the investment undertaking concerned (Article 3,
§1, 2° and §2, 2°).
A collective investment undertaking which is governed by
foreign law and which does not meet the conditions of Directive
85/611/EEC on the co-ordination of laws, regulations, and
administrative provisions relating to undertakings for
collective investment in transferable securities (UCITS) has to
make the same demonstration.
Given that the fast-growing investment industry is gradually
gaining a more international and competitive dimension, and in
order to maintain public confidence in the industry, the
Banking and Finance Commission published, on May 18 2000, a
circular in order to further explain the obligation to have an
organization guaranteeing an autonomous management.
Circular UCI 1/2000 deals especially with the issue of the
composition, the tasks and the working of the board of
directors of a management/investment company, and provides
specific rules on the outsourcing of portfolio or
The circular entered into force on the June 1 2000.