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Laws and regulations

In addition to the conditions set out in the Financial Supervision Act and AIFMD, the sub-threshold manager is obliged to continuously comply with the following laws and regulations. The AFM emphasises that the overview below, both with regard to the described laws and regulations and the explanatory notes thereto, is not exhaustive.

 

  • The Money Laundering and Terrorist Financing (Prevention) Act (Wwft) and the Sanctions Act 1977 (Sw). More information can be found in the AML guidance. For more information, please consult the Guidelines on the AML and the Sw.
  • The Regulation (EU) No 1286/2014 on key information documents for packaged retail and insurance-based investment products (PRIIPs Regulation), as well as the underlying Delegated Regulation. When a sub-threshold manager markets packaged retail investment products (or insurance-based investment products) to retail investors, it must first prepare a key information document (KID), make it available to retail investors and publish it on the website.
  • The Consumer Protection Enforcement Act (Whc) and the Unfair Commercial Practices Act (Wohp). If a sub-threshold manager markets to consumers, it may not engage in unfair commercial practices. This includes misleading or aggressive commercial practices.
  • The Market Abuse Regulation (EU) No 596/2014, as well as the underlying implementing regulations and delegated regulations. For example, the sub-threshold manager trading in financial instruments must have in place effective arrangements, systems and procedures (a monitoring system) for detecting and reporting suspicious orders and transactions. If there is a reasonable suspicion that there may be (an attempt at) insider trading or market manipulation,  a report must be made to the AFM.
  • Regulation (EU) No 1011/2016 on indices used as benchmarks for financial instruments and financial contracts or to measure the performance of investment funds (BMR). A sub-threshold manager must put a plan of measures in writing. This states what measures will be taken if a benchmark is changed in content or is no longer marketed.
  • The Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector as well as the future underlying implementing regulations and delegated regulations. A manager subject to the AIFMD registration regime must provide the required pre-contractual information (Article 6 SFDR and, where applicable, Articles 7, 8 and 9 SFDR) to (potential) investors and is obliged to make available the periodic information required under the SFDR (Article 11 SFDR). The registered managers must also make the required information from Articles 3, 4, 5 and 10 of the SFDR available on their website. If the manager does not have a website, it must still be created.