On 2 April 2025, the Dutch Authority for the Financial Markets (Autoriteit Financiële Markten, the AFM) announced the launch of an exploratory investigation into financial services provided under the so-called ‘national regime’ exemption. This regime allows financial service providers and investment firms in the Netherlands to provide (i) investment advice and (ii) the reception and transmission of orders in units or shares in UCITS and alternative investment funds. Under this regime, firms are partially exempt from certain provisions of the Markets in Financial Instruments Directive (recast) (Directive 2014/65/EU, MiFID II), as transposed into the Act on the Financial Supervision (Wet op het financieel toezicht).
The AFM has launched this investigation in response to a significant increase in the use of the national regime, a growing number of retail clients receiving services under this regime, and a rise in reports suggesting potential non-compliance by parties operating under this regime. The focus of the investigation will be on assessing compliance with key regulatory obligations, including the prohibition of commission, robust know-your-customer (KYC) procedures, and transparency around costs charged to investors.
The outcome of this study could have meaningful implications for firms operating under the national regime. If the AFM identifies serious instances of non-compliance or regulatory risks, it may take further supervisory action or propose amendments to the current regulatory framework to better safeguard investor interests and ensure market integrity.
Financial service providers and investment firms making use of the national regime are therefore advised to thoroughly evaluate their internal procedures and ensure they meet all applicable regulatory standards. The AFM has indicated that firms selected for the exploratory investigation will be notified individually.
For further details, please refer to the AFM’s official news release on the investigation (available in Dutch only via the following link).