Enforcement Policy of the AFM and DNB

Stichting Autoriteit Financiële Markten
De Nederlandsche Bank N.V.
Oktober 2020
Enforcement Policy

Stichting Autoriteit Financiële Markten
De Nederlandsche Bank N.V.
2 October 2020

Enforcement Policy of the Authority for the Financial Markets and De Nederlandsche Bank § 1. Introduction The following describes the policy1 applied by the Stichting Autoriteit Financiële Markten (AFM) and De Nederlandsche Bank N.V. (DNB), hereinafter referred to as "the supervisors," for the enforcement of the provisions of financial legislation2 on which they exercise supervision, in accordance with the supervisory tasks assigned to them under those laws.
The supervisors focus on ensuring compliance with the standards laid down in financial legislation. The starting point is that everyone behaves in compliance with norms of their own accord. Regular supervision contributes significantly to this. When regular supervision does not have or is not expected to have the desired effect, norm-conforming behavior can be achieved through the use of instruments (hereinafter: "enforcement instruments"). The enforcement policy described below provides insight into the principles and factors that guide the supervisors in determining the use of enforcement instruments, in order to achieve compliance with the standards laid down in financial legislation. In line with their own tasks, the supervisors independently arrive at an appropriate manner of action, based on a weighing of the interests directly involved in the decision. In accordance with financial legislation or the Cooperation Convention concluded between the AFM and DNB3, the opinion of the other supervisor is involved in this weighing in the cases specified therein, or this weighing is coordinated with the other supervisor. Due to developments at the European level, the European framework is becoming increasingly significant for the manner in which the supervisors exercise their supervisory tasks. For example, DNB is part of the Single Supervisory Mechanism (SSM)4 and, where applicable, takes into account the supervisory and enforcement frameworks applicable within the SSM. The European Supervisory Authorities (ESAs) also play an important role. The supervisors exercise supervision in accordance with the guidelines and recommendations (also known as guidelines and recommendations) of the ESAs, such as EBA, EIOPA, and ESMA.5