The Netherlands

Topic: Regulation and compliance

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DNB on the application of IFD/IFR to managers of AIFs and UCITS

On 20 July 2021, the Dutch Central Bank (De Nederlandsche Bank, DNB) published a supervisory regulation clarifying the application of the Investment Firm Regulation (IFR) to managers of alternative investment funds (AIFs) and undertakings for the collective investment in transferable securities (UCITS) (Managers) for public consultation (the Supervisory Regulation). The Supervisory Regulation is being published … Continue Reading

ESMA consults on remuneration requirements under MiFID II

On 19 July 2021, the European Securities and Markets Authority (ESMA) issued a consultation paper on draft guidelines on certain aspects of the MiFID II remuneration requirements. The purpose of these draft guidelines is to enhance clarity and foster convergence in the implementation of certain aspects of the new MiFID II remuneration requirements, replacing  the … Continue Reading

Commission Delegated Regulation supplementing MiFID II by specifying the criteria for establishing when an activity is to be considered to be ancillary to the main business at group level

On 14 July 2021, the European Commission adopted a Delegated Regulation supplementing MiFID II by specifying the criteria for establishing when an activity is to be considered to be ancillary to the main business at group level. Article 2(4) of MiFID II empowered the Commission to adopt regulatory technical standards (RTS) specifying the criteria for … Continue Reading

Good practices and Q&A document on integration of climate-related and environmental risks by investment firms and (managers of) investment funds

On 16 July 2021, the Dutch Central Bank (De Nederlandsche Bank, DNB) published a consultation version of a good practices and Q&A document on the integration of climate-related and environmental risks in the risk management of investment firms and (managers of) investment funds (the Good Practices Document). According to DNB, climate-related and environmental risks can … Continue Reading

Supervisory approach on the MiFIR open access provisions for ETDs

On 13 July 2021, the European Securities and Markets Authority (ESMA) issued a public statement concerning its supervisory approach on the MiFIR open access provisions for exchange traded derivatives (ETDs). The statement notes that: Article 54(2) of MiFIR provides Member State national competent authorities (NCAs) with the possibility to temporarily exempt trading venues and central … Continue Reading

ESMA warns firms and investors about risks arising from payment for order flow

On 13 July 2021, the European Securities and Markets Authority (ESMA) issued a public statement to remind firms that the receipt of payment for order flow (PFOF) raises significant investor protection concerns. The statement also reminds firms of their key MiFID II obligations intended to ensure that firms act in their clients’ best interest when … Continue Reading

G20 communiqué – third Finance Ministers and Central Bank Governors meeting

On 10 July 2021, the G20 published a communiqué following the third Finance Ministers and Central Bank Governors meeting in Venice. Among other things the communiqué: Reiterates the commitment to a timely and effective implementation of the G20 Roadmap to enhance cross-border payments by relevant authorities. In particular, it looks forward to the Financial Stability … Continue Reading

ESMA letter to Commission regarding the interpretation of the Regulation for European crowdfunding service providers for business

On 9 July 2021, the European Securities and Markets Authority (ESMA) published a letter that it had sent to the European Commission concerning certain interpretation issues regarding the Regulation for European crowdfunding service providers for business. The letter shares with the Commission some important interpretation issues regarding the Regulation that have emerged from ESMA’s interaction … Continue Reading

ESMA consults on the review of transparency requirements under MiFIR

On 9 July 2021, the European Securities and Markets Authority (ESMA) issued a consultation paper setting out proposals to amend Commission Delegated Regulation 2017/587 (RTS 1) and Commission Delegated Regulation 2017/583 (RTS 2).   RTS 1 and RTS 2 specify the MiFIR pre- and post-trade transparency requirements for equity instruments and non-equity instruments. The consultation … Continue Reading

EBA and ESMA publish final guidance on fit and proper requirements

On 2 July 2021, the European Banking Authority and the European Securities and Markets Authority published revised final joint Guidelines on the assessment of the suitability of members of the management body and key function holders. These revised final Guidelines take into account the amendments introduced by the Fifth Capital Requirements Directive and the Investment … Continue Reading

EBA publishes final draft technical standards to improve supervisory cooperation for investment firms

On 5 July 2021, the European Banking Authority (EBA) published: Final draft regulatory technical standards (RTS) on colleges of supervisors for investment firms groups. These final draft RTS have been prepared in accordance with Article 48(8) of the Investment Firms Directive (IFD). The final draft RTS specify the conditions under which colleges of supervisors exercise … Continue Reading

EBA publishes its final Guidelines on internal governance

On 2 July 2021, the European Banking Authority (EBA) published revised Guidelines on internal governance. The update takes into account the amendments introduced by the Fifth Capital Requirements Directive and the Investment Firms Directive in relation to credit institutions’ sound and effective governance arrangements, in particular with regard to gender diversity, money laundering, financing terrorist … Continue Reading

EBA revises Guidelines on sound remuneration policies

On 2 July 2021, the European Banking Authority (EBA) published revised Guidelines on sound remuneration policies. This update takes into account the amendments introduced by the Fifth Capital Requirements Directive in relation to institutions’ sound remuneration policies and, in particular, the requirement that remuneration policies should be gender neutral. The revised Guidelines also consider supervisory … Continue Reading

New proposal for a Directive on consumer credits repealing and replacing the Consumer Credit Directive

On 1 July 2021, the European Commission issued a proposal for a Directive on consumer credits repealing and replacing the Consumer Credit Directive (CDD). The Commission also published the Annexes to the draft Directive, an impact assessment report, an executive summary of the report and a factsheet. The European Parliament and the Council of the … Continue Reading

EBA provides clarification on the implementation of the new prudential regime for investment firms

On 1 July 2021,European Banking Authority (EBA) issued an Opinion concerning the implementation of the Investment Firms Regulation (IFR) and Investment Firms Directive (IFD), which entered into force on June 26. The IFR/IFD classify investment firms according to their business model and size, the latter of which is benchmarked on various threshold. For most investment … Continue Reading

Latest ESRB publications

On 1 July 2021, the European Systemic Risk Board (ESRB) published the following: Press release on the ESRB general board meeting on 24 June 2021. At this meeting the general board of the ESRB assessed the key systemic risks in the EU, as well as public policy priorities to address them. Among other things its … Continue Reading

AFM recommendations to limit behavioural risks of benchmark transition

On 30 June 2021, the Dutch Authority for the Financial Markets (Autoriteit Financiële Markten, the AFM) published recommendations on how to mitigate risks around the introduction of new fees and/or including fallback options in contracts by banks, insurers and pension funds in the context of the benchmark transition (the Recommendations). In its press release on … Continue Reading

AFM introduces restrictions on the offering of turbos to Dutch retail investors

On 30 June 2021, the Dutch Authority for the Financial Markets (Autoriteit Financiële Markten, the AFM) published its decision introducing restrictions on the offering of turbos to Dutch retail investors. The restrictions will apply from 1 October 2021 onwards and include: leverage limitations to reduce financial risk; a mandatory risk warning for better-informed decisions; and … Continue Reading

AFM on risks involved in outsourcing by financial services providers

On 28 June 2021, the Dutch Authority for the Financial Markets (Autoriteit Financiële Markten, the AFM) published a news item on good practices in relation to the risks resulting from the  outsourcing of important or critical activities by financial services providers. A survey of nearly 250 financial services providers revealed a number of weaknesses in … Continue Reading

ECB launches consultation on updates to options and discretions policies

On 29 June 2021, the European Central Bank (ECB) launched a public consultation on updates to its harmonised policies for exercising the options and discretions that it is allowed to exercise under EU law when supervising banks. In 2016 and 2017, the ECB published a set of policy instruments harmonising how options and discretions (O&Ds) … Continue Reading

Public consultation concerning the decree on registration of UBOs of trusts and similar legal arrangements

On 28 June 2021, the Implementation decree concerning the registration of beneficial owners of trusts and similar legal arrangements (Implementatiebesluit registratie uiteindelijk belanghebbenden van trusts en soortgelijke juridische constructies, the Implementation Decree) was published for public consultation by the Dutch Minster of Finance. The Implementation Decree, together with the Implementation act concerns the registration of … Continue Reading

EBA launches consultation on amendments to reporting on securitisation, asset encumbrance and G-SIIs

On 23 June 2021, the European Banking Authority (EBA) issued a consultation proposing amending implementing technical standards (ITS) on supervisory reporting with regards to COREP and asset encumbrance reporting as well as the reporting for the purposes of identifying global systemically important institutions (G-SIIs). The ITS have been developed in accordance with Article 430 of … Continue Reading
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