On 22 December 2015, the Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten, the AFM) issued a guidance document for asset managers (vermogensbeheerders) offering investment funds (beleggingsfondsen) managed by a group company (the Guidance Document). Earlier this year, the AFM launched a consultation in which it presented six conditions which can be used to avoid potential conflicts of interests and perverse incentives in such a situation. On the basis of more than twenty responses to this consultation as well as on current and proposed legislation, the AFM produced the Guidance Document.

The purpose of the Guidance Document is to point out potential conflicts of interest and perverse incentives which may arise if asset managers offer investments funds managed by companies which are part of the asset manager’s group to retail clients. In addition, the Guidance Documents set outs the relevant legal framework and provides for several practical examples. Amongst other things, the AFM points out that the risk of perverse incentives and conflicts of interest arising is particularly relevant in situations where an asset manager offers investment funds managed by external parties as well as investment funds managed by the asset manager’s group companies.

View the Guidance Document (available in Dutch only), 22 December 2015.