The Netherlands

Topic: Coronavirus

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DNB calls on insurers to temporarily suspend dividend payments and share buybacks

On 2 April 2020, the Dutch Central Bank (De Nederlandsche Bank, DNB) published a news item in which they endorse the statement issued by the European Insurance and Occupational Pensions Authority (EIOPA) calling on insurers to suspend their dividend payments and share buybacks until more is known about the impact of COVID-19. DNB fully endorses … Continue Reading

AFM reiterates EIOPA’s request to insurers and intermediaries to take actions to mitigate impact of COVID-19 on consumers

On 2 April 2020, the Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten, the AFM) published a news item emphasising the statement issued by the European Insurance and Occupational Pensions Authority (EIOPA) to insurers and intermediaries, urging them to take steps to mitigate the impact of Coronavirus/COVID-19 on consumers. Insurers and intermediaries are asked … Continue Reading

PRA statement on deposit takers’ approach to dividend payments, share buybacks and cash bonuses in response to COVID-19

On 31 March 2020, the PRA issued a statement welcoming the decisions by the boards of the large UK banks to suspend dividends and buybacks on ordinary shares until the end of 2020, and to cancel payments of any outstanding 2019 dividends in response to a request from it. The PRA also expects banks not … Continue Reading

ECB recommendation to delay dividends until October 2020

On 27 March 2020, the European Central Bank (ECB) updated its recommendation to banks on dividend distributions. The ECB recommends that at least until 1 October 2020 no dividends are paid out and no irrevocable commitment to pay out dividends is undertaken by credit institutions for the financial year 2019 and 2020 and that credit … Continue Reading

Dutch Minister of Finance answer questions on potential liquidity issues in the financial sector due to COVID-19

On 27 March 2020, the Dutch Minister of Finance (the Minister) sent a letter to the Dutch Parliament containing answers to questions raised by members of the Dutch Parliament on potential liquidity issues in the financial sector as a result of the COVID-19 crisis. The questions in the letter among other things relate to the … Continue Reading

ESMA guidance on financial reporting deadlines in light of COVID-19

On 27 March 2020, the European Securities and Markets Authority (ESMA) issued a statement on the implication of the COVID-19 pandemic on the deadlines for publishing financial reports which apply to listed issuers under the Transparency Directive (TD). In the statement ESMA notes that issuers maybe prevented from fulfilling their reporting requirements due to COVID-19, … Continue Reading

ESMA and FCA revise supervisory approach to SFTR reporting obligations

On 26 March 2020, the European Securities and Markets Authority (ESMA) issued a revised version of its earlier statement on coordinated supervisory actions on the application of the Securities Finance Transactions Regulation (SFTR). The revised statement clarifies that SFTs concluded between 13 April 2020 and 13 July 2020 and SFTs subject to backloading under the … Continue Reading

AFM suspends large data requests from financial undertakings until 1 June 2020

On 26 March 2020, the Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten, the AFM) published a news item stating that due to the impact of the coronavirus it will be suspending large data requests to financial undertakings until 1 June 2020. The AFM wants to give the financial sector space to fully focus … Continue Reading

ESMA guidance on accounting implications of COVID-19

On 25 March 2020, the European Securities and Markets Authority (ESMA) issued a public statement designed to promote consistent application of International Financial Reporting Standards (IFRS) in the EU and avoid divergence in practice on the application of IFRS 9 Financial Instruments in the specific context of the COVID-19 pandemic. The statement addresses in particular … Continue Reading

EBA provides clarity to banks and consumers on the application of the prudential framework in light of COVID-19 measures

On 25 March 2020, the European Banking Authority (EBA) issued the following statements related to the COVID-19 pandemic: Statement on the application of the prudential framework regarding default, forbearance and IFRS9 in light of COVID-19 measures. The EBA is supportive of the measures taken and proposed by Member State national governments and EU bodies to … Continue Reading

Basel Committee statement on policy and supervisory response

On 20 March 2020, the Basel Committee on Banking Supervision (Basel Committee) reported that it had held a conference call with its members to discuss the impact of the COVID-19 pandemic on the global banking system. The Basel Committee reports that following the strengthening of the Basel III standards the global banking system has significantly … Continue Reading

ECB gives banks more flexibility to help fund households and corporations

On 20 March 2020, the European Central Bank (ECB) announced further measures to ensure that directly supervised banks can weather the coronavirus related economic shock. The ECB has introduced supervisory flexibility regarding the treatment of non-performing loans (NPLs), in particular to allow banks to fully benefit from guarantees and moratoriums put in place by public … Continue Reading

ESMA delays application of MiFIR tick size regime to systematic internalisers

On Friday, 20 March 2020, the European Securities and Markets Authority (ESMA) published a Public Statement to ensure coordinated supervisory actions by national competent authorities on the application of the new tick size regime for systematic internalisers (SIs) under Regulation (EU) 600/2014 on markets in financial instruments (MiFIR), as amended by Regulation (EU) 2019/2033 on the … Continue Reading

FSB coordinates financial sector work to buttress the economy in response to COVID-19

On 20 March 2020, the Financial Stability Board (FSB) issued a press release stating that it is actively cooperating with its members to maintain financial stability during market stress related to the COVID-19 pandemic. The FSB explains that the global financial system is today in a better position to withstand shocks as a result of … Continue Reading

COVID-19: DNB measures for LSIs in reaction to coronavirus

On 20 March 2020, the Dutch Central Bank (De Nederlandsche Bank, DNB) issued a press release on its approach with respect to Less Significant Institutions (LSIs) in light of the coronavirus pandemic (COVID-19). This follows the measures announced by the European Central Bank (ECB) providing temporary capital and operational relief to Significant Institutions. DNB welcomes … Continue Reading

COVID-19: DNB lowers bank buffer requirements to support lending

On 17 March 2020, the Dutch Central Bank (De Nederlandsche Bank, DNB) issued a press release stating that it has discussed the consequences of the coronavirus outbreak for the Dutch economy and the financial sector with the Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten), the Dutch Banking Association, the Federation of Dutch Pension … Continue Reading

ESMA statement on COVID-19

On 12 March 2020, the European Securities and Markets Authority (ESMA) issued a public statement which makes certain recommendations to market participants as regards the impact of COVID-19. The statement touches on: Business continuity planning; Market disclosure; Financial reporting; and Fund management.… Continue Reading

ECB letter to significant institutions re contingency preparedness in the context of COVID-19

On 3 March 2020, the European Central Bank (ECB) issued a letter to significant institutions concerning their contingency preparedness in the context of COVID-19. In the letter the ECB makes the point that supervised entities are expected to review their business continuity plans and consider what actions can be taken to enhance preparedness to minimise … Continue Reading

DNB on business continuity plans for Coronavirus (COVID-19)

On 6 March 2020, the Dutch Central Bank (De Nederlandsche Bank, DNB) issued a press release emphasising the potential major impact of the Coronavirus on the continuity of financial institutions. DNB believes that the Coronavirus requires a different approach from standard continuity planning. Financial institutions have traditionally focused on the continuity of their services in … Continue Reading
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