Succes factors licence application

Experience from previous licence application processes shows that certain elements consistently contribute to a smooth licence application process. This factsheet outlines a number of key success factors.

Thorough preparation

A clear understanding of the licence application, including why and how specific aspects are assessed, is important. On our Open Book on Supervision website we provide you with the following information:

• The relevant sections of the law, providing insight into the applicable laws and regulations
• Explanatory notes to the authorisation application form, specifying for each topic what is expected from you 
• A careful assessment of whether a licence is required for the activities concerned, for instance with the assistance of a legal expert
• In the case of a complex application, we recommend that you contact us to discuss the possibility of a pre-application meeting

Complete licence application

This may seem obvious, but if an application is incomplete, we cannot start the substantive assessment and the licence application may be dismissed (“buiten behandeling stellen”). If the application is incomplete, we will generally request the missing information once. This results in additional time being required and the statutory decision period will not yet commence.

Please ensure, prior to submission, that all requested documents, substantiations and supporting evidence are included. The application form and the accompanying Explanatory Notes provide a comprehensive overview of the required information.

High-quality licence application

By providing a well substantiated application and clearly demonstrating for each subject (by submitting all required documents) how you meet the licensing requirements, you enable us to assess all aspects efficiently. Providing high quality information effectively constitutes strong supporting evidence for your application and can help the process proceed more swiftly.

Consult a legal adviser

In practice, we observe that applications are more often complete and of a substantially higher quality if the applicant has sought advice, for example from a legal expert or an accountant who is specialised in the Dutch Financial Supervision Act (Wet op het financieel toezicht). Engaging such expertise is not mandatory, but it can assist in submitting a structured and well substantiated application. A complete and well substantiated licence application enables us to carry out the assessment more efficiently and effectively.

Points of attention for applicants

Below you will find a number of practical points of attention to help you carefully prepare your application. These topics correspond with the more detailed explanations provided in the Explanatory Notes to the licence application form.

If documentation is missing or incomplete, this may lead to the application being dismissed or rejected. By reviewing the points of attention below in advance, you contribute to a smooth and complete assessment process.

• Is there a clear description of the intended services, supplemented by insight into the associated money flows (flow of funds)?
  
  
• Does the company’s governance structure ensure a sound and independent business operation (for example, through the establishment of a Supervisory Board)? In the case of a group structure, responsibilities and independence within that structure must be clearly defined and safeguarded.
  
  
• Does the company have sufficient capital (own funds and solvency)? Please include evidence with your application demonstrating that the statutory minimum own funds requirement is met.
  
  
• Are the arrangements for safeguarding third-party funds in place (segregation of assets)? In your application, indicate which method of safeguarding third-party funds is chosen and verify that all required supporting documents relating to this method are included upon submission.
  
  
• Is an annual financial statement available to allow verification of your financial figures?
  
  
• Has the annual financial statement been approved by an auditor?
  
  
• Does the company have substantial presence and substance in the Netherlands to actually carry out its activities?
  
  
• Has the recruitment of day‑to‑day policymakers and key function holders been completed in a timely manner? Please verify in advance that there are no integrity concerns or relevant antecedents in respect of these individuals, such as previous negative assessments by DNB or other supervisory authorities, or ongoing investigations. Careful advance checks help to prevent delays in the fit and proper assessment process.
  
  
• Have shareholders who qualify in this respect started the application process for a declaration of no objection (DNO) in a timely manner, so that it is available at the time the licence is granted? This process generally requires substantial documentation, and an early start helps to avoid delays. See also ‘DNO for shareholdings (Section 3:95 of the Wft) | De Nederlandsche Bank’.