As of 1 January 2011, all financial undertakings supervised by DNB and the AFM have to comply with the 2011 Expertise Guidelines for (co-)policy makers. The aim of these guidelines is to clarify how DNB and the AFM interpret the term "expertise" and what aspects their assessment of (co-)policy-makers is focused on. The guidelines also clarify when (co-)policy-makers can or must be assessed, and what information and background checks should be included in the assessment.
The term "expertise" has a broad scope, which includes knowledge, skills and professional conduct. Evidence of the (co-)policy-maker's expertise has to be based on his or her education and training, work experience and competences. In addition to an assessment before appointment, a re-assessment may also take place after appointment. In conducting its assessment, DNB will, amongst other things, take into account the position of the (co-)policy-maker and the size, complexity and risk profile of the financial institution. DNB will also consider the composition of the board as a whole and its collective performance.
In a recent newsletter, DNB further explained the new procedure with regard to pension funds.
DNB expects pension fund boards to be more active in recruiting and selecting new board members. The board has to submit a job profile to the appointing or nominating party and assess if the candidate meets this profile. The profile must demonstrate the knowledge, skills and competences required by the board.
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