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Decree on Prudential Rules under the Wft

Factsheet

Published: 01 January 2021

The Decree on Prudential Rules for Financial Undertakings (Besluit prudentiële regels Wft – Bpr) elaborates the provisions of Part 3 (Prudential supervision of financial undertakings) of the Financial Supervision Act (Wet op het financieel toezicht – Wft). The rules in the Bpr apply to licensed and supervised financial untertakings operating in the financial markets.

Chapters 1 to 16 of the Decree contain rules on the following subjects:

  • Chapter 1: definitions
  • Chapters 2 and 3: general subjects, such as propriety and ethical operational management
  • Chapter 4: sound operational management
  • Chapter 5: outsourcing of activities
  • Chapter 5a: permission requirement for central counterparties and central securities depositories
  • Chapter 6: reporting on such changes
  • Chapter 6a: safeguarding funds and lending by payment institutions and electronic money institution with registered office in the Netherlands
  • Chapter 6b: registered covered bonds
  • Chapters 7 and 8: insuring additional risks and representation;
  • Chapters 9-12a: prudential rules regarding minimum own funds, solvency, liquidity, capital buffers, technical provisions and investment policy of premium pension institutions
  • Chapter 13: reporting
  • Chapter 13a: providing payment processing services
  • Chapter 14: disclosure obligation of the external auditor and actuary
  • Chapter 15: further elaboration of a number of Wft sections regarding qualifying holdings
  • Chapter 15a: providing payment services through a payment services agent
  • Chapter 16: final provisions