RegAlertGuidance · DNB · 22 Feb 2022
Definition of 'Flexible System' for Administrative Fines
The flexible system allows statutory baseline fine amounts to be increased or reduced based on specific case circumstances. Relevant factors include the gravity or duration of non-compliance, the degree of culpability, repetition of the offence, the non-compliant party's size, preventive measures taken, ability to pay, and other special circumstances. These details are further specified in the Decree on Administrative Fines in the Financial Sector and DNB's fine and penalty amounts policy.
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What does 'flexible system' mean?
Published: 22 February 2022
Answer:
This system means that while a statutory baseline amount is used for the fine or penalty category in which the act of non-compliance was classified, this amount may be increased or reduced to take account of relevant circumstances. The fine or penalty amount is tailored to the specific circumstances of the case. Circumstances that can be taken into account include:
the gravity or duration of the non-compliance
the degree of culpability of the non-compliant party
repetition of the offence
the non-compliant party's size
the measures that the non-compliant party has taken to prevent recurrence
other special circumstances
the non-compliant party's ability to pay.
Some of the circumstances are set out in more detail in the Decree on Administrative Fines in the Financial Sector. We have established a policy with regard to setting fines and penalties. See DNB's fine and penalty amounts policy (Government Gazette 2020, 63846 - Dutch Only) .
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Source: De Nederlandsche Bank — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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