The AFM - Autoriteit Financiële Markten is an independent supervisory authority for the lending, investment, savings and insurance markets across the Netherlands.
The AFM – Autoriteit Financiële Markten is an independent supervisory authority for the lending, investment, savings and insurance markets across the Netherlands. The regulator encourages fair and thorough provision of financial services to clients and private investors across the region.
Regulator’s aim is to advance consumers’ and firms’ confidence in the financial markets, both in Netherlands and overseas. The AFM adds to stability of the financial system, the economy and the reputations and prosperity of the Netherlands. Following on this, the AFM encourages fairness and transparency across the financial markets.
The mission of AFM – Autoriteit Financiële Markten
The mission of the Dutch Authority for the Financial Markets comprises three key objectives:
- The AFM encourages the transparent and proper provision of financial services;
- The regulator promotes the fair and effective operation of the capital markets
- The AFM contributes to the stability of the financial system
Moreover, the regulator is responsible for overseeing the operation of the financial markets in the Netherlands. This implies that the regulator monitors the conduct of the complete financial market industry, including investment, savings, loans and insurance. Moreover, by overseeing the behavior of the financial markets in the Netherlands, the AFM strives to improve the financial environment.
To be more specific, Dutch watchdog is inspecting, enforcing and transferring the standards in the financial sector. In case the regulator identifies any violations to its framework, it can impose sanctions. Such sanctions can include placement under undisclosed custody, withdrawal of license, cancelation or refusal of registrations. Moreover, AFM is also in charge of imposing fines and order for periodic penalty payments.
AFM’s authority tools
AFM possesses an authority to implement any of the following in case of breaches:
- instructive conversation on compliance with standards
- public warning
- order for incremental penalty payments
- administrative fine
- withdrawal or limitation of licence
- referral to the Public Prosecution Service
- submission of a disciplinary complaint (against an external auditor)