Jan. 06, 2022
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Dear Members of the SEC,
We contact you because we have a question about the extraterritorial effect of the proposal.
We are a Belgian (European) bank (KBC Bank NV), which has very limited lending activities. We don’t lend US Securities to a third party.
So our scope is a non US regulated entity (but a European regulated bank), and non US Securities.
Our counterparties are all European Counterparties. Would it make a difference if this would be (per exception) a US regulated entity? We lend out European securities. Would it make a difference if this would be, per exception, US securities? I hereby give an example of what we do: we are promoting employee plans to employers. In that framework, some employers want to give the possibility for their employees to do a cashless exercise. In that case, we often borrow the shares from the shareholders of the company, and we lend them out to the employees so that the y are able to do a cashless exercise. It concerns most of the time shares that are traded on Euronext (Brussels, Aframsterdam, Paris).
I cannot imagine that the shareholder, which is not familiar with financial law, would have to report to the FINRA, nor that we have to report the loans that we granted to the employees, which are all Belgian natural persons.
So my question is: can you clarify the extraterritorial effect of the proposal?
Thank you.
Yours truly,
Christel Daems
Legal Advisor – Group Legal
Transactional Products - LMF
Mobile +32 475 65 03 86
I can be contacted every working day
KBC Group
Havenlaan 2 – 1080 Brussels
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