On 14 December 2022, the Dutch Authority for the Financial Markets (Autoriteit Financiële Markten, the AFM) published amendments to the Further Regulation on Conduct of Business Supervision of Financial Undertakings AFS (Nadere Regeling gedragstoezicht financiële ondernemingen Wft, the Further Regulation).
The amendments concern the (1) Key Information Document (KID) for Packaged Retail and Insurance-based Investment Products (PRIIPs), (2) segregated assets account (rekening met afgescheiden vermogen) for investment firms and (3) ‘comparison chart’ that is going to replace the service provision document (dienstverleningsdocument).
1 KID for PRIIPs
As of 1 January 2023, managers of an Undertaking in Collective Investments in Transferable Securities (UCITS) are required to publish a KID instead of a Key Investor Information Document (KIID) when offering units to retail investors. The KID must be drawn up in accordance with the PRIIPs Regulation (Regulation (EU) No 1286/2014). The AFM amends the Further Regulation for the technical implementation of this change.
2 Segregated assets account for investment firms
In 2022, the segregated assets account was introduced for investment firms. Investment firms may use this account for safeguarding client funds, seeing that the funds are segregated from the investment firm’s own assets and the account serves exclusively to settle claims from interested parties. The AFM amends the Further Regulation with the purpose of clarifying that no prior approval from the AFM is required if an investment firm decides to make use of a segregated account.
3 ‘Comparison chart’ replaces service provision document
Financial services providers are currently required to provide a service provision document to the consumers to which they provide their services. In 2023, this document will be replaced by the ‘comparison chart’. The comparison chart should inform consumers more effectively about the financial service provided to them and allows consumers to easily compare different financial services providers. The AFM amends the Further Regulation to include the template for this document.
The amendments in relation to the KID and the segregated asset accounts enter into force on 1 January 2023. The amendments on the comparison chart enter into force later in 2023.