On 12 February 2020, the draft Act implementing capital requirements 2020 (Implementatiewet kapitaalvereisten 2020, the Draft Act) was published for public consultation. The Draft Act contains changes to the Act on the Financial Supervision (Wet op het financieel toezicht) which are necessary to implement:

• Directive (EU) 2019/878 of the European Parliament and of the Council of 20 May 2019 amending the Capital Requirements Directive IV as regards exempted entities, financial holding companies, mixed financial holding companies, remuneration, supervisory measures and powers and capital conservation measures (CRD V); and
• Regulation (EU) 2019/876 of the European Parliament and of the Council of 20 May 2019 amending the Capital Requirements Regulation as regards the leverage ratio, the net stable funding ratio, requirements for own funds and eligible liabilities, counterparty credit risk, market risk, exposures to central counterparties, exposures to collective investment undertakings, large exposures, reporting and disclosure requirements (CRR II).

CRD V entered into force on 27 June 2019 and needs to be transposed in national laws by 28 December 2020. The Draft Act transposes part of CRD IV into Dutch law and will in the course of this year be followed by implementing decrees or regulations. The majority of the provisions of CRR II will apply from 28 June 2021.

CRD V and CRR II only provide for a total of four provisions with Member State options, two of which are included in CRD V and relate to the remuneration rules. The Netherlands will make use of these two Member State options so that national choices that have already been made can be sustained (the 20% bonus cap and the wider scope of the remuneration rules will both be retained).

The public consultation will end on 11 March 2020.