Supervision of financial reporting requirements For Issuers of securities

The AFM supervises the compliance of the financial reporting of listed companies with a number of regulations and financial reporting standards.

The financial reporting of listed companies must comply with the regulations of Title 9 of Book 2 of the Dutch Civil Code and with the International Financial Reporting Standards (IFRS) which are developed by the International Accounting Standards Board (IASB) .

In accordance with the Financial Reporting Supervision Act (Wet toezicht financiële verslaggeving, or Wtfv), the AFM supervises the financial statements of listed companies after their adoption by the shareholders. In other words, companies are held self-responsible for compliance with relevant laws and regulations.

Request for further information

The AFM may ask questions to listed companies about the application of financial reporting requirements, which are considered a request for further information. Companies are required by law to respond to this request and to provide further information, orally or in writing.

Further steps

Once the further information has been received, the AFM will determine what further steps are necessary. The AFM may decide to make informal arrangements with a company, which must be observed in future financial reports.


The AFM may also issue a notification in which it informs a company that the financial reporting does not comply with the financial reporting requirements and that in future the company should draw up its financial reports in accordance with these reporting requirements.


Furthermore, the AFM may decide to have the notification accompanied by a recommendation  to the company to publish a press release, in which it explains how the reporting requirements will be applied in future and the consequences thereof for its financial reporting.

Enterprise chamber

The Financial Reporting Supervision Act (Wet toezicht financiële verslaggeving, or Wtfv) does not grant the AFM the authority to impose an instruction, an order for incremental penalty payment or an administrative fine, but if necessary the AFM can go to court. Following the issuance of a recommendation by the AFM, or if the AFM is of the opinion that a company has not adequately responded to a recommendation, the AFM may start procedures at the Enterprise Chamber of the Amsterdam Court of Appeal. The court may order the company to draw up its financial statements in accordance with the financial reporting requirements.

Thematic reviews

Each year, the AFM carries out and publishes a number of thematic reviews  in order to draw attention to the application of specific reporting requirements in a particular area of business and stimulate companies to improve the quality of their financial reporting.

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