The CBFA, predecessor of the FSMA, published information in April 2010 and January 2011 on life settlement contracts and, in particular, contracts of this type offered by the Dutch firm Quality Investments.
In recent weeks, the Dutch and a number of other foreign authorities have taken initiatives in respect of these contracts. Belgian investors in the products offered by Quality Investments can obtain more information by contacting the FSMA's ‘Relations with Consumers of Financial Services’ department (tel.: +32 2 220 59 10; email address: peri@fsma.be).
On 20 April 2010, the CBFA published information regarding “life settlement” contracts on its website. Anyone who has signed a life settlement contract is entitled to a portion of the claims against insurers upon the death of the insured parties. The return on such a contract depends in part on the time of death of the insured parties. In some cases, a reinsurer insures the risk that the insured party will still be alive at the end of the term of the insurance policy. If the insured is still alive at that point, the reinsurer must pay out the amounts owing under the life settlement contract. In its information message, the CBFA warned against the significant risks linked to the investments in life settlement contracts.
On 27 January 2011, the CBFA published additional information, in particular about life settlement contracts offered by the Dutch firm Quality Investments. Quality Investments was one of the main providers of life settlement contracts in Belgium, both directly and through "class 23" insurance products. The American authorities conducted a judicial investigation into the reinsurer of the life settlement contracts distributed by Quality Investments. In recent weeks there has been significant movement in the Quality Investment case, of which the FSMA wishes to inform the public.
Various foreign authorities have initiated investigations into the activities of Quality Investments and its directors. On 28 September 2011, the Public Prosecution Service of the Netherlands distributed a press release in this regard, entitled "International action in respect of suspected investment fraud". The Dutch text of the press release is available here.
On 13 October, the Dutch authorities organised an informational meeting for investors in the products of Quality Investments. Investors were advised to take joint initiatives in order to limit the damage. The press release on this meeting is available here (in Dutch only).
Belgian investors in the products of Quality Investments who have not yet been contacted by the Dutch authorities can contact the FSMA's ‘Relations with the Consumers of Financial Services’ department (tel.: +32 2 220 59 10; email address: peri@fsma.be).
Would you like to enquire more generally as to the regularity of a transaction being proposed? If so, please consult the Consumers page on the FSMA website (www.fsma.be) or contact the 'Relations with Consumers of Financial Services' department (tel.: +32 2 220 59 10; email address: peri@fsma.be).