Regulatory Alerts2024-10-28
Exploratory Review of the Mandate Confirmation
The Dutch Authority for the Financial Markets (AFM) issues five guidelines to elevate the quality and clarity of pension funds’ mandate confirmation documents, which formally conclude the mandate acceptance process for new or modified pension schemes. The AFM requires funds to independently map participant impacts separate from transition effects, justify suitability through structured reasoning, address individual scheme elements rather than only the aggregate, and explicitly model outcomes for non-average participants and specific life events. Furthermore, the authority mandates that these documents be structured for clear navigation, ensuring both current and future board members and social partners can readily understand the rationale and consequences of the chosen pension design.