In the future, the EC may designate countries that are not Member States ('third countries') that carry out the supervision of investment firms in an equivalent and effective manner. Investment firms from these designated third countries will be able to provide investment services or carry out investment activities in the Netherlands directly (with or without a branch office) without an AFM licence and without a European passport.
These investment firms must, however, satisfy 3 conditions:
- They are registered in a register maintained by ESMA.
- They only provide investment services to or carry out investment activities to professional investors as referred to in section I, Annex II of MiFID II.
- They inform their clients that they are not subject to European supervision.
These investment firms are thus not subject to supervision by the AFM, they are subject to the supervision of the designated third country where the investment firm has its registered office. Currently there are no countries declared equivalent by the EC.