FSMA Kredietbemiddeling flashcards

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Credit intermediary

A natural or legal person who, for remuneration, presents or proposes credit agreements, assists consumers in preparatory steps, or concludes credit agreements on behalf of a lender, without acting as lender.

FSMA register

The public list maintained by the FSMA of registered credit intermediaries, showing their category, status and any restrictions, allowing consumers to verify an intermediary before dealing.

Prior registration condition

An intermediary may only carry out credit intermediation after being entered in the FSMA register; acting without registration is prohibited and exposes the person to administrative and criminal sanctions.

Tied agent versus broker

A tied agent acts in the name and for the account of one lender and is registered under that lender, while a broker may work with several lenders and must disclose this.

Professional liability insurance

A registration condition for credit intermediaries requiring adequate insurance cover for professional liability arising from intermediation activities, protecting consumers against errors and misconduct.

FSMA supervisory powers

The FSMA may request information, inspect premises, impose administrative fines, suspend or withdraw registration, and publish sanctions against intermediaries that breach conduct-of-business rules.

Notification of changes

Registered intermediaries must inform the FSMA within the prescribed period of changes to their registered data, such as address, category, directors or agents; failure to do so is a breach.

Mortgage credit register

A separate FSMA register for mortgage credit intermediaries, with additional competence, insurance and capital requirements distinct from those applicable to consumer credit intermediaries.

Consumer credit

Credit granted to a natural person acting outside professional activity, for an amount below the regulatory threshold, governed by consumer-credit rules on information, withdrawal and creditworthiness.

Open-end credit

A credit agreement without a fixed term or total amount, such as a revolving credit or credit card, which either party may terminate and which carries specific termination and early-repayment rules.

Linked credit agreement

A credit agreement financing a specific good or service where lender and supplier cooperate; the consumer may invoke remedies against the lender if the supplier fails to perform.

Annual percentage rate of charge

The total cost of credit expressed as an annual percentage, including interest, fees and compulsory insurance, used as the key comparison figure between competing credit offers.

Total amount payable

The sum the consumer must repay, equal to the amount of credit plus the total cost of credit, including all interest, commissions, taxes and charges required under the agreement.

Standard European information form

The mandatory pre-contractual document stating the type of credit, amount, duration, APR, total amount payable, instalments, and the consumer's right of withdrawal and early repayment.

Early repayment right

The consumer's right to repay the credit early at any time; the lender may claim compensation only within statutory limits, and certain open-end credits exclude such compensation.

Hire-purchase agreement

A credit agreement in which the consumer obtains the use of a good and becomes owner after paying instalments covering the price plus a financing cost, disclosed through the APR.

Distance credit agreement

A credit agreement concluded without the simultaneous physical presence of the parties, for example online or by telephone, which benefits from an extended withdrawal period.

Pre-contractual information duty

The obligation to provide the standard information form on paper or another durable medium in good time before the consumer is bound, enabling comparison of offers.

Creditworthiness assessment

A mandatory evaluation of the consumer's ability to repay based on income, expenses and existing obligations, carried out before the credit agreement is concluded.

Right of withdrawal

The consumer's right to withdraw from a consumer credit agreement within 14 calendar days without giving reasons and without penalty, starting from conclusion or later receipt of terms.

Disclosure of intermediary status

Before providing any service, the intermediary must state its identity, FSMA registration and category, and whether it is tied to one or more lenders or acts as a broker.

Disclosure of remuneration

The intermediary must inform the consumer about the nature and source of its remuneration, including commissions from lenders and any fee charged directly to the consumer.

Advice statement

When advice is provided, the intermediary must give a personalised recommendation explaining why the proposed agreement suits the consumer's needs and financial situation.

Fair treatment duty

The obligation to act honestly, fairly and professionally, avoid misleading omissions, and manage conflicts of interest arising from commission structures or linked products.

Record-keeping obligation

The intermediary must retain records of information provided, advice given and agreements concluded, and make them available to the FSMA upon request during supervision.

Complaints procedure

An accessible internal procedure for handling consumer complaints, with information on escalation to the FSMA or the competent ombudsman service for financial services.

Misleading credit advertising

Advertising that creates a false impression about cost, product nature or intermediary status is prohibited; credit advertising must be fair, clear and not misleading to consumers.

APR in advertising

When an advertisement states an interest rate, APR or cost figure, it must also disclose the APR, total amount of credit, duration and, where applicable, total amount payable.

Upfront fee warning sign

A request to pay a fee before receiving the loan or signed agreement is a classic fraud indicator; legitimate lenders deduct costs from the disbursed amount or bill after conclusion.

Guaranteed credit warning sign

An unsolicited promise of guaranteed approval or very fast credit regardless of solvency is a fraud indicator, since creditworthiness assessment is legally mandatory before granting credit.

Data phishing warning sign

Requests for card numbers, PIN codes or e-banking codes before any agreement, often via cloned websites or non-official e-mail domains, indicate identity fraud or phishing.

FSMA fraud warnings

The FSMA publishes warnings and lists of unauthorized intermediaries and fraudulent websites; consulting them before responding to a credit offer is a standard verification step.