Both the Dutch Central Bank (De Nederlandsche Bank, DNB) and the Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten, the AFM) test directors, supervisory directors and other policymakers of certain financial undertakings (including, but not limited to banks, insurers, investment firms, trust offices, pension funds, managers of UCITS and AIFs) for, amongst other things, suitability (geschiktheid). The aim of the screening is to ensure that only people with sufficient knowledge and skills work in the financial sector as policymakers.
The rules and regulations dealing with this suitability screening have been tightened in the last few years. In addition, the suitability tests have often been subject to criticism. Therefore, the Dutch Minister of Finance (Minister van Financiën), on behalf of the Dutch Parliament, requested the DNB and the AFM to further review suitability screening. The Minister of Finance has now published a letter from the DNB and the AFM which includes the results of their investigation into suitability tests conducted in 2013 and 2014.
The DNB and the AFM point out the positive impact that suitability tests have. The primary reason for this is that financial undertakings seem to be paying more attention to attracting and retaining qualified policymakers and supervisory directors, which results in better corporate governance structures. The letter contains an overview of the number of suitability tests the DNB and the AFM conducted in 2013 and 2014, broken down by type of financial undertaking. Please find a simplified overview below.
|Dutch Central Bank||Netherlands Authority for the Financial Markets|
|Total suitability tests 2013:||1,178||Total number of suitability tests 2013:||1,126|
|Total rejections or withdrawals 2013:||165 (14%)||Total rejections or withdrawals 2013:||41 (4%)|
|Total suitability tests 2014:||1,737||Total number of suitability tests 2013:||1,516|
|Total rejections or withdrawals 2013:||234 (13%)||Total rejections or withdrawals 2013:||75 (5%)|
View the letter of DNB and the AFM on feedback effects suitability tests, 3 July 2015.