Short Reads

DNB Supervisory Outlook 2017

DNB Supervisory Outlook 2017

DNB Supervisory Outlook 2017

19.12.2016 NL law

In 2014, the Dutch Central Bank ("DNB") published its long-term vision on supervision for the years 2014-2018. Recently, DNB published its supervisory outlook for 2017.

DNB identified low interest rates, technological innovation, inability to adapt to changes by financial institutions, the complexity and unintended consequences of laws and regulations, terrorist financing and money laundering, climate-related risks (especially for non-life insurers and lenders to CO2 heavy industries) and financial, economic and political risks, such as risks related to Brexit and the US elections as key risks for the years ahead.

  • Technological innovation – Current laws do not always sufficiently mitigate the risks related to technological innovation. DNB's focus will be on the impact of blockchain technology on the financial sector, topics related to cybercrime, and financial sector technological innovation generally.
     
  • Outsourcing – DNB will focus on the risks associated with outsourcing by financial institutions.
     
  • Climate risks – In 2016, DNB published a paper about the transition to a carbon-neutral economy. Follow-up research will focus on risk management methods, including a "stress test" for climate risks and research on climate risks for insurers.
     
  • Adaptability of the financial sector and strategic decision making – DNB will look into the ability of financial institutions to adapt to changing circumstances and will conduct an assessment at a number of insurers and pension funds on the quality of their strategic decision-making process. Based on the results of this assessment, DNB will issue best practice guidelines and will inform the sector by means of a publication and a seminar.
     
  • Integrity screening – DNB announced that it will continue to make improvements to the process of the integrity screening of directors.
     
  • Systematic integrity risk analysis ("SIRA") – Financial institutions are required to have an adequate SIRA in place. DNB will review whether the SIRA leads to appropriate risk-mitigation policies.
     
  • Aggressive tax planning and anonymity of clients – DNB will investigate whether financial institutions facilitate arrangements preventing individuals and companies from being visible to governmental authorities.
     
  • Measures relating to anti-terrorism financing and sanctions – DNB will review whether the required improvements to mitigate the risks of involvement in terrorist financing and potential breaches of the Dutch Sanctions Act have been adequately implemented.
     
  • Banks – DNB will assess individual institutions in relation to their yearly risk assessment (the Supervisory Review and Evaluation Process (SREP)). Internal models for the calculation of market risk, counterparty risk and credit risk, defaulting loans and credit risk will also be reassessed.
     
  • Insurers – DNB will look into the impact of technological innovation on the insurance sector, whether the risk management function satisfies the requirements set out in Solvency II and the profitability of insurance products by reviewing the Product Approval and Review Process (PARP). DNB will also conduct a "stress-test" for insurers.
     
  • Pension funds – DNB will review the provision of information of pension funds to their clients, It will also look into whether the business models are sustainable.
     
  • Trust offices – Trust offices will be part of the cross-sector assessment relating to the measures they have implemented so far to prevent terrorist financing and the Sanctions Act 1977.
     
  • Investment firms and AIFMs – DNB will conduct on-site assessments of risk at large investment firms and AIFMs.
     
  • Payment institutions and electronic money institutions – Payment institutions must draw-up a recovery and resolution plan. DNB will expand its supervisory capacity relating to payment institutions and electronic money institutions.
     
  • Money transfer offices – DNB will extend its transaction monitoring and network analysis to money transfer offices to ensure an effective supervision of anti-money laundering and anti-terrorist financing measures.

The other Dutch financial regulator, the Netherlands Authority for the Financial Markets ("AFM"), which focuses on market conduct supervision, also formulated its long-term vision under its supervisory agenda in January 2016, covering the period 2016-2018. On 25 March 2016, the AFM updated these plans in its agenda for 2016. Further plans have not yet been made public for 2017.

Team

Related news

18.07.2019 NL law
ESMA publishes report on licencing of fintech firms across europe

Short Reads - On 12 July, the European Securities and Markets Authority ("ESMA") published a report on the status of licencing regimes of FinTech firms across the European Union ("EU").  The report is based on two surveys conducted by ESMA since January 2018, which gathered evidence from EU national competent authorities ("NCAs") on the licensing regimes of FinTech firms in their respective jurisdictions.

Read more

05.07.2019 NL law
Consultation to extend shareholder notification obligations

Short Reads - Stibbe has taken part in the public consultation concerning the draft Act on the extension of substantial holding notification obligations, which was commissioned by the Dutch Minister of Finance.​ In its consultation response, Stibbe objected to the draft bill and recommended it be abandoned.

Read more

01.07.2019 NL law
Dutch government publishes plans to combat money laundering

Short Reads - The Dutch Minister of Finance and Minister for Justice and Security published a joint letter today (1 July 2019) that they sent to the Dutch Parliament containing plans to combat money laundering (click here to read the letter in full, in Dutch). These new plans follow recent scrutiny in the Netherlands and Europe relating to money laundering. Some of the plans are far reaching, and will lead to practical implications for our clients if these plans are transposed into Dutch law.

Read more

26.05.2019 NL law
Duurzaamheidsverplichtingen voor de financiële sector: een overzicht

Articles - De komende jaren zal de financiële sector zich actiever dan voorheen moeten bezighouden met het klimaat en de verantwoordelijkheid die de sector draagt voor het milieu en de maatschappij. In rap tempo wordt er wet- en regelgeving ontwikkeld die financiële ondernemingen en aandeelhouders verplichten om aandacht te geven aan deze nieuwe rol die zij vervullen in de verduurzaming van de financiële sector en de maatschappij als geheel. 

Read more

Our website uses functional cookies for the functioning of the website and analytic cookies that enable us to generate aggregated visitor data. We also use other cookies, such as third party tracking cookies - please indicate whether you agree to the use of these other cookies:

Privacy – en cookieverklaring