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01 January 2007 Supervision Supervision label Factsheet

De Nederlandsche Bank (DNB) is responsible for prudential supervision, and is committed to ensuring sound and ethical financial institutions that meet their obligations. The Dutch Authority for the Financial Markets (AFM) is responsible for market conduct supervision, and is committed to ensuring fair and transparent financial markets. From these two perspectives, the two supervisors work closely together when assessing management and supervisory board members.

For fit and proper assessments of management and supervisory board members of banks and insurers, we are under a statutory obligation to request the AFM's advice. We also work together with the AFM in fit and proper assessments of board members of other types of institutions,

and we may attend each other's assessment interviews. The AFM joins in our assessment interviews:

  • for important policymaker positions (such as CEO, CFO or COO) in large corporations
  • on aspects related to the candidate or the institution that are relevant to the AFM’s supervision
  • in the event of major past events or antecedents in which the candidate may have been involved
  • in the event of a publicity-sensitive institution or appointment
  • in other situations where assessment is complex or requires additional attention
  • in the event of an assessment interview with central clearing counterparties, clearing houses and clearing and settlement institutions, because the AFM oversees the infrastructure of these parties.

We join in the AFM's assessment interviews:

  • for important policymaker positions (such as CEO, CFO or COO) in large corporations for which the AFM is the licensing authority, such as investment firms and investment fund managers.
  • on aspects related to the candidate or the institution that are relevant to our supervision
  • in the event of major past events or antecedents in which the candidate may have been involved
  • in the event of a publicity-sensitive institution or appointment
  • in other situations where assessment is complex or requires additional attention

We inform candidates in advance if both we and the AFM will be attending the assessment interview. We jointly prepare the interview and make agreements on the distribution of roles. Each supervisor raises questions from its own perspective and responsibility.

During the assessment interview we focus on strategy, business models and sound and responsible operational management.

Among other things, the AFM assesses the candidate’s knowledge and experience with regard to the duty of care vis-à-vis the consumer and how the customer’s interest is safeguarded in the institution’s operational management. For banks and insurers, the AFM pays particular attention to the product approval and review process (PARP), the institution’s vision on resolving issues relating to unit-linked insurance policies or the risks of providing inappropriate services. For listed banks and insurers, the AFM also pays extra attention to market abuse provisions and the handling and the concept of insider information.

We and the AFM independently make our own assessment of the candidate's fitness and propriety. If either we or the AFM arrive at a negative conclusion, this will prevail in the final decision.

European banking supervision

Banks must also take into account the procedures prescribed by the ECB. In the case of significant banks, DNB and the AFM together prepare and coordinate the assessment and assessment interviews.

We submit a draft decision to the ECB, taking into account the AFM’s advice, in which a negative conclusion of either supervisory authority is decisive. The ECB then takes the final decision on the basis of an opinion of the Joint Supervisory Team (JST). The ECB may, in exceptional cases, deviate from our draft decision.

In the case of less significant banks, the assessment will take place in consultation with the AFM and we will take the final decision.

Sector(s)

  • Banks
  • Clearing & Settlement Systems
  • Clearing institutions
  • Insurers
  • Investment firms
  • Pension funds