The Netherlands Authority for the Financial Markets (Autoriteit Financiale Markten, AFM) and the Dutch Central Bank (De Nederlandsche Bank, DNB) have published the results of their investigation on the risk management of financial institutions relating to their use of and contribution to benchmarks. According to the AFM and DNB, financial institutions still do too little to control the risks related to the use of and contribution to benchmarks.
According to the AFM and DNB, financial institutions need to speed up with their internal evaluation of their monitoring mechanisms. To assist financial institutions, the AFM and DNB have included guidance by way of ‘good practices’.
Please note that as of 1 January 2015, benchmark manipulation is prohibited under Dutch law. The AFM can use its enforcement measures, such as fines, if benchmarks are manipulated.