Short Reads

DNB information session on suitability and integrity testing

DNB information session on suitability and integrity testing

DNB information session on suitability and integrity testing

29.07.2016 NL law

In June 2016, the Dutch Central Bank (De Nederlandsche Bank, "DNB") hosted an information session about their approach to suitability and integrity testing of executives of financial institutions.

The information session was intended for financial institutions and their employees and executives, and their advisors.

DNB is currently internally reviewing its testing procedures. The information session is part of this internal review. Simultaneously, an external independent review (Commission Ottow) is expected to report its findings at the end of 2016. An interim report, dated 6 July 2016, can be found here.

This external review intends to evaluate these tests and their process. Specifically, the review commission will assess whether the current practice is an adequate implementation of the statutory duty of DNB and the Dutch Authority for the Financial Markets (Autoriteit Financiële Markten) to contribute to the solid and sound business conduct of financial institutions.

DNB emphasized in the session that it aims to be transparent and open for discussions about any questions and/or criticism about the tests. It furthermore informed us that the positive results of the tests were increasing each year, 96% of the tested persons 'passed' in 2015 (out of 1,949). DNB also conducted a survey amongst market participants and received a grade of 7.2 out of 10 (based on 500 received surveys).

Questions from the audience and discussions mainly focused on how to answer the open-ended questions in the integrity test form and whether candidates can and should already perform preparatory activities pending approval.

As a general remark, DNB mentioned that the institution also has a responsibility to perform a due diligence in the preparation of a prospective appointment, whether or not with their advisors. This will speed up the process and reduce discussions with or questions from DNB.

Source: Banking and Finance Update July 2016

Team

Related news

27.09.2019 NL law
Stibbe is attending the IBA's annual conference in Seoul

Conference - The annual conference of the International Bar Association (IBA) is currently taking place in Seoul. There are fourteen partners from Stibbe attending the event. Several of them have speaking slots on a wide range of legal topics and will take part in various panel discussions.

Read more

06.09.2019 NL law
Supervision of crypto services

Short Reads - On 3 September 2019, De Nederlandsche Bank ("DNB") published a press release in which DNB points out to providers of crypto services that they should prepare for imminent DNB supervision. Companies facilitating the exchange of crypto currency for normal money and companies that offer crypto wallets will have to comply with a registration obligation from the beginning of 2020.

Read more

25.09.2019 NL law
The long arm of regulation – Dutch chapter by Roderik Vrolijk and Senna Leentjens

Articles - The continued global scrutiny of financial services firms, alongside the sustained pressure on those charged with regulating them to deliver tangible results, continues to drive financial services regulators to seek assistance from their overseas counterparts when investigating issues. This trend shows no signs of abating, and questions such as how and when regulators interact with each other and with firms across borders, how firms are expected or required to respond, and whether duplicate proceedings can be brought in different jurisdictions are more pertinent than ever.

Read more

07.08.2019 NL law
Roderik Vrolijk and Soeradj Ramsanjhal in Global Legal Insights - FinTech Edition 2019

Articles - Roderik Vrolijk and Soeradj Ramsanjhal have contributed to the 2019 FinTech edition of Global Legal Insights (GLI), providing the Netherlands chapter. The GLI FinTech 2019 edition covers approaches and developments in the FinTech sector with respect to regulatory and insurance technology, regulatory bodies, key regulations and regulatory approaches, restrictions and cross-border business in 26 jurisdictions.

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