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08 December 2021 Supervision

Opinion on UK prudential supervision for the purposes of Section 130(f) and 134(2) of the Bgfo

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Question:

May a Dutch collective investment undertaking (UCITS) invest assets under management in deposits with a UK-domiciled bank after 31 December 2021?

Answer:

Yes, DNB has determined, for the purposes of Section 130(f) of the Decree on Business Conduct Supervision of Financial Enterprises (Besluit gedragstoezicht financiële ondernemingen – Bgfo), that prudential supervision in the UK provides adequate safeguards with respect to the interests that the law is intended to protect.

Last year, we arrived at the same opinion. This opinion was valid until the end of 2021 and DNB has decided to extend it indefinitely. However, we will review our opinion by the end of 2023 or so much earlier as relevant changes or developments in prudential supervision in the United Kingdom become apparent. This may lead us to withdraw the current finding that prudential supervision in the United Kingdom provides adequate safeguards with regard to the interests which the law is intended to protect. We will announce any change in our opinion in good time.

Question 2:

Can a Dutch collective investment undertaking (UCITS) have a counterparty risk of up to 10% of its assets in an OTC derivatives transaction after 31 December 2021 if the counterparty is a UK-domiciled bank?

Answer 2:

Yes, DNB has determined, for the purposes of Section 130(f) of the Decree on Business Conduct Supervision of Financial Enterprises (Besluit gedragstoezicht financiële ondernemingen – Bgfo), that prudential supervision in the UK provides adequate safeguards with respect to the interests that the law is intended to protect.

Last year, we arrived at the same opinion. This opinion was valid until the end of 2021 and DNB has decided to extend it indefinitely. However, we will review our opinion by the end of 2023 or so much earlier as relevant changes or developments in prudential supervision in the United Kingdom become apparent. This may lead us to withdraw the current finding that prudential supervision in the United Kingdom provides adequate safeguards with regard to the interests which the law is intended to protect. We will announce any change in our opinion in good time.

Sector(s)

  • Collective investment schemes

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