The Netherlands Authority for the Financial Markets (AFM) hereby offers you a guideline for the application of suitable rules on commissions at investment firms. A significant part of these rules have been included in open standards, which are explained in this guideline. This guideline mainly relates to these open standards and the manner in which commissions have to be made transparent. The AFM provides starting points, partly on the basis of examples, for the application of the rules for appropriate commissions.
On 1 November 2007, rules with respect to inducements, in other words suitable commission rules, have entered into force as a result of the implementation of the Markets in Financial Instruments Directive (MiFID) in the Financial Supervision Act (Wft). Inducements can be interpreted as 'incentives to perform a certain action'. Commissions may lead to investments firms not looking after the interests of its clients in a fair and professional manner. The inducement standard should lead to appropriate commissions.
On 12 March 2009, the AFM submitted a draft guideline on the application of appropriate commission rules at investment firms for consultation purposes to interested market parties. These parties had until 13 April 2009 to respond.
The AFM has, on the basis of the responses, drawn up a so-called feed back statement that can be consulted via the AFM's website. In this document, the AFM provides a summary of the responses and the AFM's response to them. The AFM has adjusted and clarified the guideline in some respects on the basis of the responses. It concerns, inter alia, the status of the guideline, the role of the CESR, non-monetary rewards, the burden of proof and transparency.
Note! The guideline on appropriate commission currently published by the AFM only relates to investment firms. The AFM has also submitted a guideline on appropriate commission for financial service providers for consultation purposes to all interested market parties. The final version of this guideline will soon be published.
The AFM promotes fairness and transparency within financial markets. We are the independent supervisory authority for the savings, lending, investment and insurance markets. The AFM promotes the conscientious provision of financial services to consumers and supervises the honest and efficient operation of the capital markets. Our aim is to improve consumers’ and the business sector’s confidence in the financial markets, both in the Netherlands and abroad. In performing this task the AFM contributes to the prosperity and economic reputation of the Netherlands.
The AFM is committed to promoting fair and transparent financial markets.
As an independent market conduct authority, we contribute to a sustainable financial system and prosperity in the Netherlands.