This is the latest edition of the Stibbe Banking & Finance Update, which provides an update on developments in the areas of banking & finance and financial regulation. In this issue we focus on developments in the area of banking licence exemptions and on financial regulations that entered into force on or about 1 July 2015 or shortly thereafter.
Transitional regime available for group finance companies
Group finance companies are exempt from the requirement to obtain a banking licence provided that the conditions laid down in Section 3:2 of the Dutch Financial Supervision Act are met. These finance companies attract funding in the market and lend the proceeds to their group companies. Section 3:2 of the Dutch Financial Supervision Act was amended at the beginning of the year, which led to clarification of the conditions. In addition, the exemption no longer applies if the main business of the group is providing financing to third parties. A transitional regime applies to companies that attracted funding in the market prior to 1 January 2015. Read more
Unintended banking licence exception
On 1 January 2015, the group finance companies exemption as set out in the Dutch Financial Supervision Act was amended. The same day, another exception to the Dutch licence requirement for providing banking services was inadvertently included in Section 2:11(2) of the Dutch Financial Supervision Act. On 1 July 2015, the Dutch legislator announced it planned to correct this by deleting the aforementioned subsection. Read more
Dutch Implementing Act pursuant to the Single Supervisory Mechanism Regulation
On 12 June 2015, legislation implementing the 'European Union Single Supervisory Mechanism Regulation no. 1024/2013', also known as the SSM Regulation, entered into force in the Netherlands. The SSM Regulation became effective on 4 November 2014 and created a single supervisor for the prudential supervision of banks: the European Central Bank. The division of tasks and responsibilities between the European Central Bank and the Dutch supervisory authorities DNB and the AFM are now implemented in the Dutch Financial Supervision Act, even though the changes do not include material deviations from the SSM Regulation. Read more
Start consultation of MiFID II Implementation Act 2014
MiFID II will apply from 3 January 2017. EU Member States are required to adopt and publish measures transposing MiFID II and delegated acts into national law by 3 July 2016.
MiFID II will be implemented in the Netherlands through amendments to the Dutch Financial Supervision Act. On 5 June 2015, the Dutch Ministry of Finance published a consultation paper and its first legislative proposal for the MiFID II Implementation Act 2014 (Wet implementatie richtlijn markten voor financiële instrumenten 2014). In general, MiFID II extends the scope of MiFID, contains more detailed regulation, and provides regulatory authorities with the power to impose much stricter penalties and enforcement thereof. Read more
Proposal for an Act to implement the amended Transparency Directive
The Dutch Act to implement the amended Transparency Directive (2013/50/EU) was submitted to Dutch Parliament on 18 June 2015. The required implementation date is 26 November 2015. As a result of this proposal, various transparency obligations will be changed for issuing institutions. Read more
Dutch financial laws and regulation in force on or about 1 July 2015
Amendments to the Dutch Financial Supervision Act are set to enter into force either on 1 January and 1 July of each year. An overview of the recent amendments that entered into force on or about 1 July 2015 is provided below. Read more