IOSCO has created a method for identifying system-relevant financial institutions that are not banks or insurers. This method is the subject of a consultation. IOSCO is the worldwide association of national securities regulatory commissions in which the AFM also participates.
Responses can be submitted until 7 April 2014. The relevant documents can be found on the IOSCO website.
System-relevant financial institutions cause major problems for the financial system when they are no longer able to comply with their obligations. This is related to their size, complexity and their interconnectedness with other institutions.
Methods have already been developed to determine which banks and insurers are system-relevant. Investment firms and collective investment companies can also assume such a relevant position in the market. IOSCO has therefore developed a method at the request of the G20 and the Financial Stability Board (FSB) that makes it possible to determine whether such market parties are system-relevant. The relevant criteria are: size, interconnectedness, replaceability, complexity and the level of cross-border activity.
The aim is to be able to identify financial institutions as system-relevant. They are then more closely monitored and risks are reduced where possible.
IOSCO and the FSB appreciate any comments as regards this method.
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.