What does the AFM pay attention to, in its supervision? For The Caribbean Netherlands

The AFM performs the conduct-of-business supervision on financial markets, which means that the AFM ensures that businesses and individuals in the financial markets comply with the laws and regulations. The financial products that the AFM supervises are savings accounts, investment schemes, insurance policies, loans, and portfolio management.

Supervision AFM and DNB

The abbreviation AFM stands for The Dutch Authority for the Financial Markets. The AFM is the supervisory authority for the conduct-of-business supervision of the financial markets. The AFM works together with DNB, in which context the AFM supervises the conduct of financial enterprises, and DNB checks whether the financial enterprises can meet their financial obligations. In addition, DNB supervises the integrity of banks and insurers. The AFM supervises the integrity of advisers and intermediaries. Both are independent.

Some enterprises, such as banks and insurers, fall under the supervision of both the AFM and that of DNB, whereas some enterprises fall under only one of the supervisors. Thus advisers and intermediaries only fall under the supervision of the AFM, and trust offices only under the supervision of DNB.

Costs of the supervision in Caribbean Netherlands

Performing supervision costs money. DNB and AFM are partially paid by the enterprises under their supervision. This means that licence holders must pay an annual levy to the AFM. There must also be payment for licence applications or assessments of persons.

Duty of care

Institutions and persons who work with these financial products must be experts in their field, trustworthy, and honest. They also have a duty of care, which means that they must act in the interests of their clients. They must therefore provide all the information to the client that is necessary to enable the client to make a good choice. The information must be accurate, clear, understandable and not misleading.

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