On 2 November 2016, the Dutch State Secretary for Social Affairs and Employment (the State Secretary) sent a letter to the Dutch Parliament containing answers to questions that were raised in relation to the screening of directors of pension funds by the Dutch Central Bank (De Nederlandsche Bank, DNB). Among other things, the following questions and answers are covered in the letter:
- whether it is correct that current directors are not required to undergo an integrity screening (betrouwbaarheidstoets) and suitability screening (geschiktheidstoets), and if that is the case, how many directors have not been screened as a result? The State Secretary confirms that current directors do not need to be screened and that the number of directors that have not been screened is limited to 30 persons;
- whether pension fund directors who are nominated for reappointment will need to undergo an integrity and suitability screening. The State Secretary indicates that pension fund directors who were first appointed before 30 December 2000 have been screened in case they were reappointed after this date. Pension fund directors who were first appointed after 30 December 2000 were screened before their first appointment. These pension fund directors will only need to undergo new integrity and suitability screenings in case of a reappointment if their function profile has changed or in case of a new function. From 2014 onwards, DNB screened 91 pension fund directors as a result of a change in their function profile;
- DNB may decide that a pension fund director needs to undergo a new integrity or suitability screening if it believes there is reason to do so (there must be a reasonable cause). How often has DNB taken such decision? The State Secretary indicates that for 2014 two pension funds directors needed to undergo a new screening, none in 2015 and one in 2016; and
- how many directors of the 250 largest pension funds have been screened? According to the State Secretary, 729 screenings were conducted for a total number of 226 pension funds in the period between 2002 and 2010. In the period from 2011 onwards, 1237 screenings were conducted for a total number of 261 pension funds.
View the State Secretary’s letter (Dutch only), 2 November 2016.