Regulatory Alerts2023-05-11
Added · Updated
Factsheet on prudential points of interest in applications and in ongoing supervision
De Nederlandsche Bank (DNB) requires investment firms and fund managers to submit substantiated prudential documentation for licence applications and declarations of no objection, including audited balance sheets, three-year budgets, and detailed capital requirement calculations. Applicants must correctly determine minimum own funds based on specific thresholds (e.g., €75,000 to €750,000 for investment firms) and accurately calculate K-factors and the Fixed Overhead Requirement (FOR) by classifying all costs as fixed. The document mandates the deduction of specific items from own funds, such as goodwill and deferred tax assets, and requires internal control structures to describe risk management and reporting obligations. Investment holding companies with over 50% interest must also demonstrate compliance with consolidated prudential requirements.