AFM investigates segregation of assets with regard to third pillar investment products
The Dutch Authority for the Financial Markets (AFM) has conducted an investigation into compliance with the Financial Supervision Act (Wft) when tax-facilitated investment products are transferred. The investigation showed that not all market parties possessed adequate licences to hold customer funds. In addition, the AFM identified an asset segregation risk where funds belonging to switching customers are held, temporarily, in the market participant’s own account. The AFM calls on market parties to pay close attention to this matter and, if necessary, to contact the AFM.
Market parties offering tax-facilitated investment products are subject to ongoing supervision by the AFM. Several market parties in the sample conducted by the AFM did not possess an adequate licence for holding customer funds. Some market parties briefly held customer funds in their own accounts while a transfer was being processed. The market parties concerned have now adjusted their business operations.
Most market parties offering tax-facilitated investment products have signed up to the protocol on the streamlining of capital transfers (PSK protocol), which is managed by the Dutch Banking Association (NVB) and the Dutch Association of Insurers (VV). Through this protocol, a transfer of accrued benefits is generally processed within fourteen days. The AFM has made working agreements with the NVB and VV on measures to check the adequate segregation of assets among market parties that sign up to the PSK protocol.
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