The Financial Services and Markets Authority (FSMA) has published its 2025 annual report. The report describes how the FSMA has fulfilled its mission over the past year to contribute to a financial system that is worthy of its users’ trust. On the occasion of this publication, the FSMA also outlined some pathways for the reform and strengthening of third-pillar pensions.
The annual report addresses a number of current topics such as fraud prevention and awareness, effective international cooperation, the analysis of the Belgian investor’s investment portfolio, and the data analytics that have become an indispensable tool for the FSMA. The annual report also devotes special attention to the 15th anniversary of the FSMA, which was established on 1 April 2011. The report provides a timeline with an overview of the initiatives that the FSMA has taken year after year in areas such as product supervision, supervision of compliance with conduct of business rules, supervision of costs, and financial education, in order to fulfil its mission.
On the occasion of the publication of its annual report, the FSMA outlined a few pathways for third-pillar pensions. These are in line with the objectives of the European Savings and Investment Union (SIU): to invest more in Europe. Pension savings have three features that are not widely known: (1) the costs are moderate; (2) pension savings succeed in delivering a decent return and (3) pension savings funds invest 88 per cent of their assets in Europe. They invest 2.1 billion euros in European ‘small caps’, of which 357 million in Belgian shares.
The total assets in pension savings have been growing, reaching 42 billion euros at the end of 2024, but this increase was mainly driven by developments in the financial markets and a surplus of contributions. In order to keep pension savings relevant, in light of evolving expectations and retail investor behaviour, the current regime needs to be modernized.
A first pathway to that end would be a drastic simplification of the investment rules in the appliable tax law. The current investment requirements bear no resemblance, in terms of complexity, to the legislator’s original intent in 1986. At the time, the aim was to stimulate risk capital through pension savings, and the investment requirements were simple. The FSMA believes that a “back-to-the roots” simplification of the investment requirements could help reduce the cost level. Simplification could also encourage greater diversity within the range of products offered and, for example, make passive investing possible.
Greater mobility is also a possible pathway: switching between pension savings products can be facilitated by eliminating a number of barriers that render mobility more difficult.
The 2025 annual report is available on the FSMA website. In addition to the full annual report in PDF format (available in French - Dutch only), the website also offers an interactive tool (available in French - Dutch only) which provides a concise overview of several themes from the report. The FSMA’s opinion (available in French - Dutch only), a few takeaways (available in French or Dutch only) and a presentation (available in French - Dutch only) are also available on the FSMA website.