17 May 2018

Financial Markets in brief – new regulation and other developments

There have been many developments in national and European financial markets regulation during the past month. We provide a brief overview of these developments, which include the Minister of Finance’s letter about new legislation, a consultation on a draft decree regarding the recovery and resolution of insurers, and the latest news on the Fourth European Anti Money Laundering Directive.

PSD2

DNB has published an updated Factsheet on PSD2 that includes new Q&As on the EBA’s recommendations to national supervisory authorities regarding the transition from PSD1 to PSD 2, account information services, and payment initiation services.

On 9 April 2018, the Minister of Finance informed the Second Chamber about the status of the bill implementing PSD2. He indicated that the final touches are being made to the memorandum of amendments and the memorandum responding to the examination of the bill by the Standing Committee, and that he expects to be able to submit them in the near future.

Minister of Finance letter about new legislation

The Dutch Minister of Finance has published his yearly letter to the Dutch financial supervisors AFM and DNB, in which he responds to their requests for additional legislation. Among other things, the minister promises to stimulate a European approach to regulations for initial coin offerings; in the meantime, he will investigate whether existing Dutch legislation allows for enforcement action. Also, the Minister is working on measures granting the AFM the power to ban advertisements for payday loans.

Furthermore, the Minister will explore the feasibility of a number of the supervisors’ suggestions, including:

  • supervision of the use of big data
  • more effective ways to deal with investment fraud
  • changes to the fine categories for infringements of MiFID II.

Recovery and resolution of insurers

The Minister of Finance has launched a consultation on a draft decree on the recovery and resolution of insurers. The purpose of the draft decree is to implement a bill on the recovery and resolution of insurers. Among other things, the decree includes rules on the preparatory crisis plans that insurers must prepare, the resolution plans that DNB prepares, the assessment of resolvability, the funding scheme, and the principles for certain valuations. The consultation period ends on 29 May 2018.

Consultation on good practices for the outsourcing of activities by insurers

The Dutch Central Bank has launched a consultation on draft good practices for the outsourcing of activities by insurers. Comments can be submitted through 31 May 2018. The good practices are aimed at helping insurers manage the risks involved with outsourcing.

Insurance Distribution Directive

The Dutch market supervisor (AFM) has published twenty new Q&As on the Insurance Distribution Directive.

The Fourth European Anti Money Laundering Directive

The European Parliament and the Council of the EU have adopted the proposal amending the Fourth European Anti Money Laundering Directive (4AMLD).

A consultation has been launched for a draft ministerial regulation implementing the 4AMLD in the Netherlands, in addition to a bill and draft decree (click here for our Legal Alert on the draft decree). Among other things, the draft states that life insurers will no longer be exempted from having to perform enhanced customer due diligence with regard to politically exposed persons residing in the Netherlands. It also includes changes regarding the designation of supervisory authorities.

In addition, the Minister of Finance has given an update on the status of the draft bill aimed at implementing the 4AMLD, specifically regarding the requirement to maintain an UBO register. The legislative process of this draft bill has been postponed; he expects that the bill will be submitted to the Second Chamber of the Dutch parliament at the beginning of 2019. The legislative process for a UBO register for trusts and similar legal structures is expected to begin at the end of the spring of 2018.

Other publications

EC

EP

EBA

ESMA

EIOPA

ECB

Official Journal EU

MinFin

MinSZW

AFM

DNB

Other