On 2 May 2017, the Dutch Minister of Finance published for consultation the Act implementing the Regulation on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds (Benchmarks Regulation) (Wet uitvoering verordening financiële benchmarks) (the Implementation Act). The Implementation Act will amend, among other things, the Dutch Act on the Financial Supervision (Wet op het financieel toezicht).
The Benchmarks Regulation is intended to contribute to the accuracy and integrity of benchmarks used in financial instruments and financial contracts by, among others, ensuring that benchmark administrators are subject to prior authorisation and supervision and ensuring the appropriate supervision of critical benchmarks, such as EURIBOR and LIBOR. Most provisions of the Benchmarks Regulation will apply from 1 January 2018.
The Implementation Act implements some of the aspects of the Benchmarks Regulation in respect of the supervision of compliance with the Benchmarks Regulation. For example, non-compliance with two provisions of the Benchmarks Regulation will be punishable. This concerns the obligation for market parties to only use benchmarks that have been established in accordance with the Benchmarks Regulation and the licence requirement for administrators of benchmarks.
The consultation period will end on 30 May 2017.
View the consultation website (Dutch only), 2 May 2017.
View the Implementation Act (Dutch only), 2 May 2017.
View the Explanatory Memorandum (Dutch only), 2 May 2017.