Reporting supervision
The AFM supervises the compliance of (semi-)annual reporting of issuing companies with regulatory reporting requirements. This oversight is governed by the Financial Reporting Supervision Act.Requests for further information
The AFM can request further information from issuers about the application of and adherence to reporting standards. Requests are usually communicated by written correspondence and can contain inquiries for additional information on the matter. Issuers are obliged to provide the requested further information given the AFM’s legal enforcement power.
Further steps
Once the written further information has been received, we will invite the company to further elaborate on its responses in a meeting. We will then asses which follow-up steps and formal or informal enforcement measures are necessary.
During this assessment phase, we may anonymously raise the matter with ESMA’s Issuers Standing Committee (ISC) to consult with European counterparts for the purpose of promoting consistent application of international reporting standards. We may engage with issuers to have agreements that it should take into account when preparing future reporting.
Notification
The AFM can notify an issuer in writing that its reporting does not comply with the applicable reporting requirements and that the company must adhere to those requirements in its future reporting.
Enterprise Division of the Amsterdam Court of Appeal
The AFM has the authority to seek judicial intervention and initiate formal proceedings when an issuer does not sufficiently follow their recommendation. In such cases, the AFM can request the Enterprise Division of the Amsterdam Court of Appeal (Enterprise Chamber) to order the issuer to follow the AFM’s recommendation with a press release. In addition, the AFM can request the Enterprise Chamber to order the issuer to comply with the appropriate regulatory reporting requirements. In the event of such an order, specific and detailed instructions will be given to the issuer.
Thematic reviews
The AFM conducts thematic reviews on current matters and trends in financial and non-financial reporting. Results are published in form of reports or other publications to draw attention to the application practices of reporting requirements. In this way, the AFM seeks to encourage companies to further enhance the quality of their financial reporting.