All articles · 2025-06-20 · General
FSMA cancels and corrects insurance products.
234 insurance products adjusted since 2022 after checks by the FSMA.
By Jan Hermans, CEO & founder of Lyff.
🎯 Goal: "Value for Money" for the consumer
The FSMA (Financial Services and Markets Authority) has set up a systematic control of insurance products since 2022, within the framework of European regulations concerning "Value for Money". This regulation obliges financial service providers to align products with the needs and expectations of the target audience.
As CEO of Lyff. I see this evolution as a necessary purification of the market. Too often, I saw entrepreneurs who paid premiums for years for pension products where management costs and hidden commissions completely eroded returns. The FSMA is now intervening in structures that were legally sound, but economically simply made no sense for the end-user. In my book "Fiscale Shortcuts voor managementvennootschappen" (Tax Shortcuts for Management Companies), I have long emphasized: optimization is not an end in itself, but a means to shape your professional life. A product that only enriches the bank does not belong in the control room of your company.
The hidden costs in your pension machine
Many IPT (Individual Pension Commitment) and VAPZ (Free Complementary Pension for the Self-Employed) contracts were previously sold as fiscal miracle cures. The focus was on the 80% rule and deductibility in corporate tax. However, what often remained underexposed was the impact of the cost structure in the long term. If you pay 3% entry fees and on top of that an annual management fee of 1.5% in a Tak 21 (branch 21) environment with a low interest rate, then after ten years you are still at a loss in real terms. The FSMA is now forcing insurers to justify these 'dormant' returns.
- Transparency about actual net returns after inflation.
- Comparison with clean share classes in Luxembourg structures.
- Discontinuation of products with disproportionate commission loads.
Practical example: The 'dormant' IPT of an IT consultant
Take the case of a consultant who annually contributed 10,000 euros to a classic IPT (Individual Pension Commitment). On paper, he enjoyed the 4.4% premium tax and tax deductibility. However, an analysis showed that the insurer withheld 5% in fees with each contribution and the profit-sharing was almost negligible. By switching to a Tak 6 (branch 6) contract or a transparent Branche 23 (branch 23) solution via our pension planning services, the entrepreneur could retain the same tax benefits, but with an expected final capital up to 30% higher due to the elimination of distribution fees. This is not about saving more, but about saving smarter.
Frequently asked questions
Do I have to cancel my existing contracts now?
Not necessarily. Some older contracts still have a high guaranteed interest rate of, for example, 3.25% or 4.75%. These are worth gold. It mainly concerns contracts from the last ten years that are often expensive and inefficient. Have an objective audit done of your current policies to see if they meet the new quality standards.
What if my insurer cancels a product?
Don't panic. Your accumulated reserves remain your property. Often you will receive a proposal to switch to a new, optimized product. This is the ideal time to review your entire tax optimization and check whether the new conditions are really in your favor.
Want to know more about how to apply these shortcuts yourself? Discover the complete mechanism in my book.