Regulatory Alerts2018-12-24
Added · Updated
Feedback Statement: Q&A on Whether Warranties in Purchase Agreements Qualify as Insurance
The Netherlands Authority for the Financial Markets (DNB) finalizes its Q&A on the qualification of warranties in purchase agreements as insurance, incorporating changes based on public consultation. The document clarifies that the assessment relies on open norms, specifically replacing "generally accepted standards" with "social views" to align with civil case law, and defines "expected lifespan" as the economic life of the product rather than statutory conformity periods. It further explains that warranties remain subordinate to the purchase agreement if the commercial element dominates, and confirms that DNB provides guidance through opinions rather than binding legal determinations, noting that Q&As are non-binding policy statements.