Regulatory Alerts2026-03-15
Investor Protection Improvement Points for Smaller Asset Managers
The Dutch Authority for the Financial Markets (AFM) issued this March 2026 supervision update detailing seven key investor protection improvement points for smaller asset managers based on recent risk-based research. The document mandates that firms implement robust suitability assessments with thorough client profiling and meticulous record-keeping, establish comprehensive Product Approval and Review Processes (PARP) with clear target group delineation and scenario testing, and ensure all staff advising clients hold demonstrable professional competence. Additionally, asset managers must guarantee full cost transparency, proactively identify and mitigate conflicts of interest, immediately report material incidents and structural changes to the AFM, and maintain a well-resourced, independent compliance function with risk-based monitoring.