The Rotterdam District Court recently held that the Netherlands Authority for the Financial Markets (AFM) does have the authority to demand by letter copies of business documents, in addition to demanding general information. In doing so, the District Court revoked an earlier decision of the court in interlocutory proceedings. This means that from now on the AFM, during an investigation, will again be able to demand in writing that institutions and persons send in the requested copies. They are required to cooperate with such demands.
In October 2012 the AFM adjusted its procedures pursuant to a decision of the court in interlocutory proceedings dated 5 September 2012. The court in interlocutory proceedings held that the supervisor did not have the authority to demand written copies of business data and documents during its investigations. The AFM consequently adjusted its procedures in several respects. The person involved in an AFM investigation was allowed to voluntarily send in copies of the requested information, or the AFM would visit the office to copy the data.
In its decision of 21 February 2013 (www.rechtspraak.nl, LJN: BZ2448), the Rotterdam District Court explicitly distanced itself from the earlier decision of the court in interlocutory proceedings. In doing so, the District Court agreed with the objections of the AFM. The AFM consequently cancelled the adjustment of its procedures.
- Decision LJN BZ2448 on rechtspraak.nl (in Dutch only).
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