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

30.03.2022 LU law
(R)evolution of the securitisation framework

Articles - On 4 March 2022, the law of 25 February 2022 amending the law of 22 March 2004 on securitisation (the 2004 Law) has been published. It entered into force on 8 March 2022. This is a welcomed (r)evolution in the securitisation operations in the Grand Duchy of Luxembourg after 18 years of implementation of a tested and widely admitted legal framework.

Read more

25.02.2022
Stibbe Debt Finance Seminar/Webinar: issues you need to know about in 2022

Seminar - On Wednesday March 9 (16:00-17:30) Stibbe presents a seminar to update and outlook you on legal challenges facing financial market participants in 2022. In addition, on Wednesday March 16, 2022, (12:00-13:30), a webinar will also be held on the same theme. The in-person seminar will be held in Dutch and the online session in English.

Read more

11.03.2022 LU law
The New Luxembourg SFDR and Taxonomy Regulation Implementing Law

Articles - On 3 March 2022, the Luxembourg law of 25 February 2022 implementing a.o. the Sustainable Finance Disclosure Regulation (SFDR) and the Taxonomy Regulation has been published in the Official Journal of the Grand Duchy of Luxembourg. This law specifies the CSSF and CAA's supervisory and investigation powers concerning financial market participants and financial advisers under their supervision in relation to the control of the implementation of the SFDR and the Taxonomy Regulation, as well as, their administrative sanctioning powers in case of non-compliance by in-scope firms.

Read more