Most Read Contributor in Netherlands, February 2017
As Niels Bohr once said, prediction is very difficult,
especially if it is about the future. However, one hardly needs the
gift of prophecy to predict that there will be more amendments of
financial markets laws in 2017.
New powers for regulators
In December 2016, the Dutch government adopted a draft bill
confirming that supervisors will be given more power to issue
public warnings. The Netherlands Authority for the Financial
Markets (AFM) and the Dutch Central Bank (DNB) will also be able to
publish the names of individual institutions when publishing the
results of their investigations. The draft bill also proposes
giving DNB the power to publish core figures of banks if certain
conditions are met.
Higher fines for market abuse
The decree implementing the remaining provisions of the European
Market Abuse Regulation is expected to enter into force soon. Fines
for serious infringements of the market abuse provisions will then
be raised; the maximum fine for serious infringements will be EUR 5
million and, as a result, the maximum fine for repeat infringements
will be EUR 10 million. For large enterprises, the fine will be up
to 10% of net annual turnover. For infringement of certain
provisions of the Market Abuse Regulation this maximum fine can be
raised to EUR 15 million or (for large enterprises) 15% of net
annual turnover. Please see the December 2016 In context for a summary of the
Crowdfunding, automated advice, calculation of shares
The following amendments are expected to take effect on 1
Employees who give advice to clients
about a general pension fund or the voluntary affiliation to a
sector-wide pension fund must have a diploma.
Financial institutions offering
automated advice must ensure that the advice satisfies the same
requirements as advice provided by an individual.
Funds in investment accounts must be
used exclusively to build up capital; clients of investment firms
that manage portfolios may not use part of this amount to pay
advisors or intermediaries. The scope of the inducements ban will
be extended to this effect.
The Ministry of Finance has clarified
that the exception to the inducements ban currently available to
crowdfunding platforms also applies to equity crowdfunding.
The implementation of the mandatory exchange of initial and
variation margin for non-cleared OTC derivative trades in the EU
commenced on 4 February for financial counterparties with the
largest derivatives portfolios.
Nevertheless, a RAIF's investment policy is subject to certain risk diversification requirements laid down by the CSSF.
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