The Netherlands

Topic: Enforcement

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ESMA publishes fourth annual report on use of sanctions for UCITS

On 20 July 2021, the European Securities and Markets Authority (ESMA) issued its latest report in the use of supervisory sanctions by Member State competent authorities (NCAs) under the UCITS IV Directive. The report has been prepared in accordance with Article 99e(1) of the UCITS IV Directive and covers the period from 1 January 2020 … Continue Reading

ESMA publishes second report on sanctions under AIFMD

On 20 July 2021, the European Securities and Markets Authority (ESMA) issued its second annual report on the use by Member State competent authorities (NCAs) of sanctions under the Alternative Investment Fund Managers Directive (AIFMD). The report has been prepared in accordance with Article 48(3) AIFMD. It contains information on the penalties and measures imposed … Continue Reading

ESMA finds NCAs imposed sanctions of €8.4 million for MiFID II breaches in 2020

On 19 July 2021, the European Securities and Markets Authority (ESMA) published its third report on the use of sanctions and measures by Member State competent authorities (NCAs) under MiFID II. Overall, in 23 (out of 30) EU/EEA Member States, NCAs imposed a total of 613 sanctions and measures in 2020 for an aggregated value … Continue Reading

AFM publishes revised policy rule for determining amounts of administrative fines

On 29 June 2021, the Dutch Authority for the Financial Markets (Autoriteit Financiële Markten, the AFM) published a revised policy that the regulator uses to determine the amount of nearly all administrative fines it imposes: the Fine Allocation Policy AFM 2021 (Boetetoemetingsbeleid AFM 2021). Market participants were given the opportunity to respond to the proposed … Continue Reading

AFM calls on financial undertakings to timely file financial statements

On 31 May 2021, the Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten, the AFM) published various news items on its website calling on investment firms (see here, here and here), managers of alternative investment funds (AIFs) and depositaries of AIFS and undertakings for collective investment in transferable securities to file their financial statements … Continue Reading

DNB discusses IFR/IFD developments and requests firms to check for investment holding companies in their group

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 … Continue Reading

AFM sector letter for light AIFMs

On 15 April 2021, the Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten, the AFM) sent a sector letter to alternative investment fund managers (AIFMs) falling under the so-called ‘light’ regime. ‘Light’ AIFMs are exempted from the EU Alternative Investment Fund Managers Directive’s license obligation as laid down in Article 2:65 of the Act … Continue Reading

Financier Worldwide Magazine feature – Regulatory futures: challenges and opportunities in 2021

Throughout 2020 and 2021, financial services firms have had to respond and adapt to a number of regulatory challenges in an unprecedented fashion. Firms now have to navigate a diverging regulatory landscape as a result of Brexit, at the same time as continuing to respond to an array of pandemic-related risks that have arisen. Nevertheless, … Continue Reading

AFM consults on policy rule for determining amounts of administrative fines

On 25 March 2021, the Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten, the AFM) started a public consultation of a proposed revision of the policy rule used to determine the amount of nearly all administrative fines imposed by the AFM: the Fine Allocation Policy AFM 2021 (Boetetoemetingsbeleid AFM 2021, the New Policy). The … Continue Reading

ESMA advises the Commission on the application of sanctions under MiFID II/MiFIR

On 29 March 2021, the European Securities and Markets Authority (ESMA) published its advice to the European Commission concerning the application of administrative and criminal sanctions under MiFID II/MiFIR. The legislative background to the advice is Article 90 of MiFID II which provides that the Commission, after consulting with ESMA, will present a report to … Continue Reading

Production of information to government authorities: a combined US and UK review

Information requests from regulators can raise a host of complex legal and practical issues for entities and individuals. Our experts in this field have set out the key considerations around the production of information to UK and US regulators, including information-gathering powers, privilege issues and increased global data sharing. Information-gathering powers Many UK regulators have … 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

DNB and the AFM publish enforcement policy for public consultation

On 20 January 2020, the Dutch Central Bank (De Nederlandsche Bank, DNB) and the Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten, the AFM) published a draft enforcement policy for public consultation. DNB and the AFM have the task of supervising compliance with financial laws and regulations in the Netherlands. In order to effectively … Continue Reading

Dutch court rules that independence must be guaranteed for in-house counsel to invoke legal privilege

On 7 October 2019, the District Court of Rotterdam (the Court) ruled that in-house counsel who are admitted to a non-Dutch bar can revoke attorney-client privilege when independence from their employer is not sufficiently safeguarded. The case involved the confiscation of information by the Dutch public prosecutor during a search at a major oil and … Continue Reading

ESMA announces enforcement priorities for 2019 financial statements

On 22 October 2019, the European Securities and Markets Authority (ESMA) published a statement outlining its priorities for European enforcers to consider when examining the 2019 financial reports of listed companies. The common enforcement priorities related to 2019 IFRS financial statements include: specific issues related to IFRS 16 Leases; follow-up of specific issues related to … Continue Reading

Wolfsberg Group publishes new guidance on how FIs should carry out sanctions screening

On 21 January 2019, the Wolfsberg Group published new guidance on how financial institutions (FIs) should carry out sanctions screening. The fundamentals of the guidance are derived from legal/regulatory requirements, as well as expectations and global industry best practice. It is not intended to suggest that all FIs should apply all elements in the guidance … Continue Reading

AFM agenda 2018: focus on data analysis for investor protection purposes

On 24 January 2018, the Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten, the AFM) issued a press release on its website announcing its supervisory agenda for 2018 (the Agenda 2018). In its press release, the AFM puts emphasis on new data analysis initiatives that it will be commencing in 2018 with the aim … Continue Reading

Stricter supervision of reporting of unusual transactions

On 18 December 2017, the Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten, the AFM) published a news item in which it states that due to the low number of notifications of unusual transactions made by investment firms and investment funds (four to date in 2017, similar to 2016), it will  supervise this reporting … Continue Reading

DNB letter regarding changes to supervisory framework for proprietary traders

On 13 November 2017, the Dutch Central Bank (De Nederlandsche Bank, DNB) circulated a letter on amendments that will be made to the regulatory framework for the so-called local firms (plaatselijke ondernemingen) (the Letter). In its letter, DNB states that investment firms holding a licence to perform the investment activity of “proprietary trading” only since … Continue Reading

AFM wants clarification differences between saving and investment products in comparative advertisements

On 14 July 2017, the Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten, the AFM) issued a press release in which it points out an increase in advertisements that present investing as an alternative to saving. The AFM wants parties who offer investment products to be clear around the differences between investing and saving. … Continue Reading

Dutch Minister of Finance on recovery framework in relation to the reassessment of interest rate derivatives by banks

On 19 December 2016, the Dutch Minister of Finance (the Minister) informed the Dutch Parliament on the recovery framework (herstelkader) that has been put in place for the reassessment of interest rate derivatives agreements (IRS agreements).  On the basis of the results of the ‘pilot-phase’ of the recovery framework, which was finalised at the beginning … Continue Reading

AFM responds to report on AFM’s evaluation of the reassessment of interest rate derivatives by banks

On 29 June 2016, the Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten, the AFM) published its response to a report on the manner in which the AFM supervised and evaluated the reassessment of interest rate derivatives by banks (the Report). The Report has been prepared by an independent external research agency (Alvarez & … Continue Reading

Banking and finance disputes review

Norton Rose Fulbright has today published the latest edition of the Banking and finance disputes review, the journal which analyses developments in dispute resolution relevant to financial institutions. This edition highlights some risks and benefits of different jurisdictions as centres for dispute resolution by banks and financial institutions. Of particular note is The financial list: … Continue Reading
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