Short Reads

New financial supervision rules that became effective on 1 April 2016

New financial supervision rules that became effective on 1 April 2016

New financial supervision rules that became effective on 1 April 2016

14.04.2016 NL law

Contrary to the usual dates on which amendments to the Dutch Financial Supervision Act enter into force, the majority of the new rules introduced by the Financial Markets Amendment Act 2016 (Wijzigingswet financiële markten 2016) entered into force on 1 April 2016 instead of 1 January 2016, as a result of the Act on the Advisory Referendum (Wet raadgevend referendum) which requires a certain period of time between publication and entry into force of new legislation.

New rules implemented in the Dutch Financial Supervision Act (Wet op het financieel toezicht, the "Wft") are effective per 1 April 2016 as a result of the implementation of the Financial Markets Amendment Act 2016 (the "Amendment Act"):

  1. Protection of holders of derivatives positions against the bankruptcy of intermediaries.

    The Dutch Securities Giro Transfer Act (Wet giraal effectenverkeer) now also provides for the protection of the holders of derivatives positions and collateral positions in case of bankruptcy of an investment firm or other intermediary.

  2. The new powers of DNB under the Intervention Act

    The intervention powers of the Dutch Central Bank (De Nederlandsche Bank, "DNB") and the Dutch Minister of Finance have been expanded. DNB can also use its intervention powers against the (indirect) parent company of an insurer when certain requirements are met, as long as this parent company has its statutory seat in the Netherlands. Also, the Minister of Finance can now directly expropriate claims of third parties against the distressed institution in the same manner that securities issued by that institution may be expropriated.

  3. Declarations of no-objection

    The Amendment Act introduces, among other things, the requirement of a declaration of no-objection from DNB for holding, acquiring or increasing a qualified holding in a premium pension institution (a specific type of pension fund).

  4. The supervision of liquidity for branch offices of banks and investment firms

    As a result of the implementation of a delegated regulation under the Capital Requirements Regulation, the supervision of the liquidity of Dutch branch offices of non-Dutch EEA banks and investment firms will only be performed by the home country regulator.

  5. Amendment of an unintended exception to the banking licence

    An exception to the Dutch licence requirement for providing banking services was inadvertently included in Section 2:11(2) of the Wft. This has now been corrected. We refer to our previous newsletter for more information.

  6. Amendment of the top-up regime for managers of alternative investment funds

    The top-up regime in the Netherlands no longer applies to managers of alternative investment funds marketing their shares to non-professional investors if the investment is at least €100,000 per investor.

  7. The rules on remuneration policies are extended

The rules on remuneration policies now also apply to branch offices of non-EEA financial institutions that are subject to a license obligation pursuant to Dutch financial supervision law.

Amendment Decree Financial Markets 2016 (Wijzigingsbesluit financiële markten 2016)

  1. Amendment of the inducement ban.

    The scope of the inducement ban has been extended. See our previous newsletter.

  2. Regulation on crowd funding
  • Specific rules on crowd funding have been introduced and supplemented. See our previous newsletter.
  • Policymakers of crowd funding platforms that fall under a specific dispensation regime are now subject to a suitability screening requirement, in addition to the integrity screening that was already required.
  • Finally, an exception to the deposit taking prohibition is now available for crowd funding platforms, provided that four cumulative requirements are met.

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