Aggregated News From Investment Management Regulators

Netherlands

The AFM has a new logo

In recent years, the AFM’s corporate identity has evolved to meet modern requirements. The final element of this evolution is a new logo that we will be using as of today. The rationale behind the new logo is that as a regulator, in addition to monitoring the financial markets, we also work with them to build sustainable prosperity in the Netherlands. This is reflected in the logo, with lines moving inwards from the outside intended to symbolise our ongoing dialogue with the industry. They also signify our watchful eye, alert to risks and ready to enforce where necessary. The typography is...

AFM issues recommendations to limit behavioural risks of benchmark transition

The Dutch Authority for the Financial Markets (AFM) and the Dutch Central Bank (DNB) have observed that some banks, insurers and pension funds in the Netherlands struggle to mitigate the risks around the introduction of new fees and/or including fallback options in their contracts. Therefore, the AFM has issued recommendations on how to mitigate these behavioural risks. In het kort Transition to alternative, risk-free benchmarks has slowed down worldwide Institutions struggle to mitigate behavioural risks AFM issues recommendations on behavioural risks AFM and DNB issue Joint Statement  on progress of transition Dutch financial institutions have made a considerable effort to transition to alternative,...

Better protection for investors against the risks of turbos

Restrictions will be introduced on the offering of turbos to Dutch retail investors. With effect from 1 October, there will be a leverage limitation, a mandatory risk warning and a prohibition on bonuses for trading turbos. The Dutch Authority for the Financial Markets (AFM) aims to provide better protection for retail investors against the risks of turbos. A previous study revealed that a large majority of investors have lost a great deal of money. The restrictions will apply from 1 October 2021. In brief Leverage limitations reduce the financial risk for retail investors A mandatory risk warning helps investors to make...

AFM advocates meaningful transparency and introduction of a consolidated tape

The European Commission (EC) has started revising the MiFID II/MiFIR regime. Following on from its earlier recommendations, the Dutch Authority for the Financial Markets (AFM) advocates the introduction of a consolidated tape for equity and bonds. The AFM also recommends working towards meaningful transparency in the capital markets. In brief Revised recommendations of AFM for MiFID II/MiFIR revision Transparency in capital markets that is more in line with the current market structures and trade protocols Introduction of consolidated tape for equity and bonds strongly recommended In anticipation of upcoming amendments to the current MiFID II/MiFIR regime, the AFM is proposing a...

AFM presents points of attention for personalisation of premiums and conditions

The AFM presents nine points of attention for the insurance sector for the personalisation of premiums and conditions based on behaviour and data. The application of advanced data analysis for personalised insurance premiums is growing, according to a recent exploratory study by the AFM. We note that these pricing techniques offer advantages, but they could also lead to negative effects. In brief  Advantage: reward for safe behaviour, disadvantage: risk of uninsurability Points of attention to reduce risks Call for dialogue between all stakeholders involved Examples are insurance policies that measure driving behaviour or lifestyle. The increasing availability of data, more advanced...

Annual report 2020: a year of coronavirus, volatile markets, Brexit and a new pensions system on the horizon

The 2020 annual report from the Dutch Authority for the Financial Markets (AFM) looks back on a turbulent year. While the economy collapsed due to the pandemic, the stock market was highly volatile. Many consumers turned to the stock market in the coronavirus era. The long-expected Brexit passed off smoothly. The year 2020 also saw the new pensions system taking further shape, with the AFM continuing to stress that scheme members need to be better protected. Volatile stock market and an overheating housing market Social life has come virtually to a standstill since mid-March 2020. The coronavirus pandemic caused an unprecedented...

AFM en DNB are consulting on the Regulation on Sound Remuneration Policies

The Dutch Authority for the Financial Markets (AFM)  and the Dutch Central Bank (DNB) are consulting on the Regulation on Sound Remuneration Policies (Regeling beheerst beloningsbeleid Wft 2021 - Rbb 2021). The new regulation by the AFM and DNB replaces DNB's Rbb 2017. New prudential framework and remuneration standards for investment firms The IFD must be transposed into national laws and regulations by 26 June 2021. The IFD and the Regulation on Prudential Requirements for Investment Firms (IFR) replace, for most investment firms, the prudential requirements established by the Capital Requirements Regulation (CRR) and the Capital Requirements Directive (CRD). The IFD...

Use of and information on non-financial aspects in reporting can be improved

Institutional investors and analysts still only make limited use of non-financial information, for example in their investment decisions. Companies are also failing to encourage this enough by providing relevant and reliable non-financial information. This is the conclusion of an exploratory study by the Dutch Authority for the Financial Markets (AFM). Standardisation and new legislation are important steps to encourage in the use of and information on non-financial aspects in reporting. In brief The effect of non-financial aspects at companies on future performance could be stated more clearly. According to investors, the availability of relevant non-financial information is limited. Institutional investors...

AFM shares recommendations to strengthen audit committees in their role relating to audit of the financial statements

The Dutch Authority for the Financial Markets (AFM) reviewed the role of audit committees of Dutch Public Interest Entities (PIEs) in selecting the audit firm and monitoring of the statutory audit. With its observations and recommendations, the AFM aims to strengthen audit committees in the performance of that role. Leading role in selection process audit firm Room for improvement in monitoring the external audit Transparency selection process not sufficient yet Specific recommendations for strengthening role Important link in financial reporting process Leading role in selection process audit firm Audit committees are increasingly taking a leading role in the process of selecting...

AFM supports creation of international standard setter for non-financial reporting

The Dutch Authority for the Financial Markets (AFM) supports the creation of a standard setter for non-financial reporting by the International Financial Reporting Standards (IFRS) Foundation. This is an important step in the formulation of international standards for non-financial reporting. The AFM’s standpoint is laid down in its response to the consultation of the IFRS Foundation on the creation of a Sustainability Standards Board (SSB). In brief International standards are needed for relevance and comparability A broader scope than solely climate-related is preferred Impact of ESG factors on both business and society Standards have to be verifiable and enforceable International standards...

ESMA appoints Jos Heuvelman as chair Supervisory Convergence Standing Committee

The Board of Supervisors of the European Securities and Markets Authority (ESMA) has appointed Mr Jos Heuvelman, who is a Member of Executive Board of the Autoriteit Financiële Markten (AFM) of the Netherlands, to serve as the chair of the Supervisory Convergence Standing Committee (SCSC) and as chair of the Senior Supervisors Forum. The SCSC’s mandate includes: identifying topics for, and carrying out, peer reviews by ESMA; promoting a common framework within ESMA in relation to supervisory convergence; reporting to the ESMA Board on the implementation of the supervisory convergence work programme; and dealing with cross-cutting issues of supervisory convergence...

French and Dutch financial market authorities call for a European regulation of ESG data, ratings, and related services

The Autorité des marchés financiers (AMF) and its Dutch counterpart, the Autoriteit Financiële Markten (AFM), propose a European regulatory framework for providers of sustainability-related services, which could become one of the key measures of the European Commission's renewed sustainable finance strategy. The proposed framework is aimed at preventing misallocation of investments, greenwashing, and ensuring investor protection. It includes requirements on transparency on methodologies, management of conflicts of interest, internal control processes, and enhanced dialogue with companies subject to sustainability ratings. Fostering the green transition in Europe will require significant investment over the coming years; the European Green Deal estimates that...

Regulator Information

Abbreviation: AFM
Jurisdiction: Netherlands

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