Policy Statement application SREP guidelines on fund managers

With this policy statement, DNB applies the EBA and ESMA SREP Guidelines on investment firms (EBA/GL/2022/09) when exercising its SREP competence in relation to Dutch managers of alternative investment funds and managers established in the Netherlands of undertakings for collective investment in transferable securities (UCITS) that are authorised to provide certain investment services/activities (hereinafter: managers with a MiFID top-up). This policy is important to ensure that DNB treats investment firms and the aforementioned managers equally when exercising its SREP competence. 

In the Netherlands, several prudential requirements for providing investment services/performing investment activities that apply to investment firms also apply to managers with a MiFID top-up. DNB has a SREP competence regarding both types of entities. 

In this context, EBA and ESMA have issued guidelines that provide supervisors with guidance when conducting the SREP for investment firms (hereinafter: SREP Guidelines). Since investment firms fall within the scope of these guidelines and DNB fully applies these guidelines to these firms, it is no longer necessary for DNB to specify the application of the SREP to investment firms in a separate policy rule. The Policy Statement ICAAP investment firms and investment institutions Wft 2015 (in Dutch: Beleidsregel ICAAP beleggingsondernemingen en beleggingsinstellingen Wft 2015) is therefore withdrawn.  

However, the SREP Guidelines do not apply to managers with a MiFID top-up. Nevertheless, it is existing supervisory practice that DNB follows the SREP Guidelines when applying SREP to investment firms as well as managers with a MiFID top-up. This equal treatment is formalised in the Policy Statement application SREP guidelines on fund managers by the provision that determines that in the exercise of its SREP competence DNB applies the SREP Guidelines to the aforementioned managers. This policy rule was consulted under the name: Consultation Policy Statement application SREP guidelines on fund managers. The feedback statement is accessible here. 

The new Policy Statement application SREP guidelines on fund managers contributes to transparency regarding how DNB exercises its SREP competence vis-à-vis managers with a MiFID top-up, and aims to ensure consistent supervision of investment firms and these managers. This promotes a level playing field for these entities. In addition, DNB considers proportionality important when applying the SREP Guidelines. The explanatory note to the policy rule provides further details on how DNB addresses non-material and/or non-complex prudential risks when applying the SREP Guidelines to managers with a MiFID top-up.