The AFM has a number of different ways in which it regulates collective investment schemes and securities institutions:
- Granting licences. Securities institutions and collective investment schemes must have a licence from the AFM, for which they must meet certain requirements. If an institution or scheme does not have the correct licence the AFM can impose sanctions.
- Controls. AFM employees visit regularly to check that the work is carried out according to the applicable laws and regulations.
- Ensuring that consumers are properly informed. For example, securities-issuing institutions must publish a prospectus and file it with the AFM before they issue any securities.