Regulatory Alerts2026-05-21
Execution-only investing: automatic rebalancing and risk reduction
The Dutch Authority for the Financial Markets (AFM) is developing amendments to the 2016 Guidelines for Qualifying Innovative Services to clarify the conditions under which automatic rebalancing and risk reduction may be offered within execution-only investment services. This initiative responds to market requests for regulatory certainty while ensuring that such life-cycle strategies align with responsible innovation principles, legal boundaries, and client interests. The AFM expects to launch a formal consultation on the proposed framework in the third quarter of 2026.
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