Regulatory Alerts2007-01-01
Added · Updated
Prudential assessment conducted within the context of granting investment firms authorisation
De Nederlandsche Bank (DNB) assesses investment firm authorisation applications for adherence to prudential standards, specifically covering own funds requirements, liquidity requirements, and internal governance. Applicants must submit a business plan projecting compliance with the Investment Firms Regulation and Directive over the coming three years, including calculations for the highest of the fixed overheads, permanent minimum capital, or K-factor requirements. DNB also evaluates consolidated supervision situations when a Union parent entity is involved, providing advice to the Dutch Authority for the Financial Markets (AFM) which makes the final authorisation decision.