Articles

Consultation of the AFM's draft policy regulation on incidents

Consultation of the AFM's draft policy regulation on incidents

Consultation of the AFM's draft policy regulation on incidents

08.10.2015 NL law

On 30 July 2015, the Netherlands Authority for the Financial Markets started a public consultation on its draft Policy rule on incidents (Beleidsregel incidenten). The consultation deals with how the concept of an 'incident' should be interpreted.

Dutch financial supervision law defines an 'incident' as a certain behaviour or an event which represents a serious risks to a financial institution's integrity or reputation. Incidents must be notified to the Netherlands Authority for the Financial Markets (Autoriteit Financëele Markten, the "AFM").

In its draft policy rule, the AFM shares its view on the interpretation of this concept. The draft policy rule contains a non-exhaustive list of examples of incidents. Examples include:

  • becoming aware of a potential breach of the Dutch Financial Supervision Act (Wet op het financieel toezicht);
  • a client has filed a complaint with the financial institution that one or more of its employees have displayed unethical behavior;
  • the Dutch Tax Authority (Belastingdienst) has imposed a fine on the undertaking;
  • a board member of the undertaking has entered into a private securities transaction without obtaining a required permission from the Compliance Officer under the company's insider trading policy; and
  • the undertaking has been held liable by a client for a considerable amount of money and such claim could impose serious danger for the undertaking.

The draft policy rule appears to adopt a broader interpretation of the concept of incidents than the Dutch legislator did when the current definition was enacted in 2007. At that time, the legislator took the position that an event only qualifies as an incident if a certain conduct forms a serious threat to the controlled and sound business operations of the financial undertaking, and expected a decrease in the number of notifiable incidents. The current proposal may in contrary thereto lead to an increase of notifiable incidents.

The policy rule is expected to enter into force once the consultation has been finalised.

Related news

02.06.2021 NL law
Milieuwereld en financiële wereld ontmoeten elkaar in de “E” van ESG

Short Reads - Ontwikkelingen binnen de milieuwereld en binnen de financiële wereld staan op het eerste zicht los van elkaar. In dit blog lichten wij toe waarom die vlieger anno 2021 niet meer opgaat en waarom ontwikkelingen in de financiële sector relevant zijn voor ondernemingen actief in de milieusector.

Read more

08.06.2021 NL law
Stibbe Knowledgepagina ‘Energietransitie en klimaat’ is live

Short Reads - De klimaat- en energietransitie wetgeving is versnipperd en daarom is samenwerking tussen diverse juridische specialismen van belang. Stibbe heeft daarmee veel ervaring. Bij Stibbe is deze benodigde juridische kennis nu ook voor externe kennisname samengebracht op de knowledge pagina ‘Energietransitie en klimaat‘.

Read more

17.05.2021 NL law
Stibbe, KPMG and NVB Sustainable Finance Week

Seminar - The Sustainable Finance Week - organised by Stibbe, KPMG and NVB - will take place across 4 afternoons, starting on Monday 31 May 2021. Through an online conference platform, we will present a variety of live information sessions on the EU Sustainable Finance Action Plan, and provide virtual access to knowledge and networking.

Read more