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ProfessionalsInformation forFinancial service providersProviders of investment objects

 

Providers of investment objects

Providers of investment objects 

The supervision of financial enterprises is regulated in the Act on Financial Supervision [Wet financieel toezicht] (Wft). This law entered into force on 1 January 2007 and consists of six parts: General, Market Access for Financial Enterprises, Prudential Supervision of Financial Enterprises, Supervision of the Conduct of Financial Enterprises, Supervision of Financial Markets and Supervision of Clearing and Settlement Systems. The part on Supervision of Clearing and Settlement Systems will be added to the Act at a later date.The part on the Supervision of the Conduct of Financial Enterprises in the Wft contains rules that financial enterprises must observe when providing their services, such as the rules for informing consumers (transparency) and the duty of care of financial enterprises.

Providers of investment objects
The financial product referred to as an investment object is incorporated in the Wft. On account of the specific risks involved, amongst other things, the system of standards for investment objects deviates slightly from the system of standards for other financial products regulated by the Wft. In addition to the obligations that apply to all financial service providers under the Wft, further specific obligations apply to providers of investment objects. The specific obligations for providers of investment objects are laid down in the Wft and the Decree on the Market Conduct Supervision of Financial Enterprises under the Wft [Besluit Gedragstoezicht op financiële ondernemingen Wft] (Bgfo).

The Ministry of Finance published the Regulations Implementing the Act on Financial Supervision in the Government Gazette on 27 November 2006. Article 20 of these regulations stipulates that the term of twelve months referred to in the first sentence of Article 31(2) of the Act Implementing and Amending the Act on Financial Supervision [Invoerings- en aanpassingswet Wet op het financieel toezicht], which was published on 7 December 2006, has been extended by six months.

This means that the term of one year (ending on 1 January 2007) within which the AFM must decide on licence applications that were submitted under the transitional regime of the Financial Services Act [Wet financiële dienstverlening] has been extended by six months.