The Dutch Central Bank (De Nederlandsche Bank, DNB) has recently published a newsletter in which it discusses a number of developments around the Investment Firms Regulation (IFR) and Investment Firms Directive (IFD). The IFR and IFD will make significant alterations to the prudential framework governing investment firms. This new prudential framework will take effect on 26 June 2021.
DNB mentions the possibility for investment firms to apply for dispensations or approvals under these new rules, noting that applications can be submitted to the firm’s usual DNB supervisor (or via firstname.lastname@example.org if a firm has no assigned supervisor). DNB also notes that when applying for dispensations or approvals, it is important that the application must be submitted by the applicant firm’s board and that the information provided by DNB in the Q&As published on its website are taken into account. Although DNB will only be taking formal decisions in relation to these applications after 26 June 2021, applications may be submitted now and, where possible, DNB will provide its provisional opinion.
DNB also emphasises that as a result of the IFR and IFD, investment holding companies will become subject to DNB’s supervision. This means, among other things, that investment holding companies must comply with the new prudential regulations for investment firms at a consolidated level, submit periodical reports to DNB, and (supervisory and managing) directors of investment holding companies need to be screened by DNB. According to DNB only a limited number of investment firms have indicated that they have an investment holding company (in response to an inquiry letter sent by DNB in January 2021), but this does not correspond with other information available to DNB. Therefore, DNB will be sending a number of investment firms a request for further information on their shareholder(s). DNB also asks investment firms to verify once again whether one or more of their shareholders qualify as an investment holding company (and if that is the case, this should be immediately notified to DNB).
Finally, DNB notes that it has published new reporting templates (FINREP version 3.0) for investment firms and fund managers. This taxonomy includes changes resulting from the entry into force of IFR and IFD. The new taxonomy must be submitted to DNB via the Digital Supervision Portal covering Q3 of 2021. For Q2 2021 institutions should make use of the current reporting templates.