The Dutch Central Bank (DNB) and the Authority for the Financial Markets (AFM) have launched a one-year pilot to improve the vetting of prospective directors at financial institutions. An evaluation will follow once the pilot is done.
In press releases dated 18 July 2018, DNB and the AFM announced the start of a one-year pilot to include external experts in the suitability assessments of potential directors. The idea behind appointing external experts is to improve the independence and professionalism of the assessment process of potential directors, as well as to create support among potential directors for this process.
De Brauw welcomes this development. In 2017, when responding to the European Central Bank’s (ECB) consultation on the draft guide to fit and proper assessments, we suggested adding an external advisor to the team of supervisors conducting the suitability assessments, as this would strengthen the independent nature of the screening process. The initiative is also in line with the recommendations of the Ottow Committee.
The external experts appointed by the AFM are Janka Stoker, Hans van der Noordaa and Ewoud Goudswaard. DNB has engaged Pauline van der Meer Mohr, Ludo Wijngaarden and Johan van Hall.
To read the press release in full (available in Dutch only), follow this link (AFM website) or this link (DNB website). Click here for the 2018 ECB Guide to fit and proper assessments and here for the 2017 Joint ESMA and EBA Guidelines on the assessment of the suitability of members of the management body and key function holders under Directive 2013/36/EU and Directive 2014/65/EU.
De Brauw Blackstone Westbroek
Claude Debussylaan 80
1082 MD Amsterdam
P.O. Box 75084
1070 AB Amsterdam