How does the AFM use the list for its supervision?
The AFM uses an indicative list as a risk radar for its supervision.
Information is collected monthly on whether financial enterprises, as referred to in Section 5:68 of the Financial Supervision Act, have taken positions in securities of the excluded companies. If so, the AFM will contact the relevant enterprises for an explanation. It is possible that a transaction fell under one of the exceptions to the ban. As with other areas of its supervision, therefore, the AFM does not immediately go public with the discovery. This will only occur if a final sanction process has been followed and completed.
As part of its supervision, the AFM will closely question financial enterprises each year and make the ban an item in the self-assessments.
The AFM will take enforcement action if an enterprise cannot explain why it invested in a company subject to the ban. The indicative list is not static. It remains the responsibility of each financial enterprise to ensure that it complies with the ban in Section 21a of the Market Abuse Decree under the Financial Supervision Act.
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