De Nederlandsche Bank (DNB) supports the aim of this recommendation and asks investment firms and investment funds to take account of the current crisis, the outlook and possible other scenarios that could affect their profitability, and financial buffers when considering dividend payments, share buybacks and variable remuneration payments. We ask them to reconsider the strict necessity of such actions. This could prevent the need for future remedial action.
We expect investment firms and investment funds to keep a close watch over their financial buffers in these uncertain times. If they detect any developments that could result in prudential deficits in the short term, they must report them to us without delay. We will assess individual reports and consult with the relevant institution on any follow-up and remedial action.
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For more information, please contact Tobias Oudejans (tel. +31 20 524 3100, +31 6524 96 961).