Advisers, intermediaries, authorised agents and authorized sub-agents
A licence is required to perform activities in the Caribbean Netherlands as an adviser, intermediary, authorised agent and authorized sub-agent in financial products. Financial products mean insurance policies, loans (including mortgage loans) or consumer credit, current accounts or savings accounts, rights of participation in a collective investment scheme, or a combination of these products. This means that not only insurance intermediaries must have a licence, but also mortgage intermediaries, for example. Banks are also allowed to perform these activities, but must then conform to the conduct-of- business regulations to which licence holders must also comply.
In performing the activities, these enterprises must meet requirements with respect to their management, their business operations, and their contacts with clients.
Providers of credit
Offering credit in the Caribbean Netherlands falls under the supervision of the AFM. This activity is usually offered by the majority of banks and insurers, and the credit associations, if this is permitted by the institution’s bank or insurance licence. Provision of credit may also be offered by other parties, which need a licence for this activity from the AFM. For both situations, these institutions must comply with supervision regulations in their business operations, including the requirements regarding maximum lending, their duty of care, and their contacts with clients. Requirements concerning their information provision are also imposed on activities involving the provision of a credit.
Investment advisers, stockbrokers, and asset managers
The performance of these activities in the Caribbean Netherlands falls under the supervision of the AFM. For persons or enterprises which perform such activities, a licence is required. After they have been granted a licence, these enterprises must also comply with the requirements for their business operations, including those which apply to the provision of appropriate advice, the provision of information, and the contacts with clients.
An adviser is someone who recommends a specific financial product or security to a client. A stockbroker is an intermediary involved in the creation of an agreement relating to a financial product, or a securities transaction. An asset manager is somebody who, on the basis of a written agreement, performs the management of a client’s investments.
Collective Investment Schemes
A collective investment scheme that is, in its own right, established in the Caribbean Netherlands, or whereby the manager of such scheme is established there, must have a licence from the AFM. There are currently no collective investment schemes active in the Caribbean Netherlands.