On 17 May 2017, the Dutch Minister of Finance published the Amendment Decree Financial Markets 2017 (Wijzigingsbesluit financiële markten 2017, the Amendment Decree) in the Bulletin of Acts and Decrees (Staatsblad). The Amendment Decree is part of an annual cycle of amendments to the laws and regulations relevant to the Dutch financial sector. The Amendment Decree amends, among others, Decree on Conduct of Business Supervision of Financial Undertakings (Besluit Gedragstoezicht financiële ondernemingen Wft) and the Decree on Prudential Rules for Financial Undertakings (Besluit Prudentiële regels Wft).
In our previous post on the consultation version of the Amendement Decree, we indicated that the consultation version of the Amendment Decree provided for rules in relation to, among other things, the provision of commission (provisie) from an investment account, extension of the diploma requirements to advice on general pension funds and new rules in respect of automated advice.
The final version of the Amendment Decree that has now been published no longer contains the new rules on automated advice. It follows from the consultation report to the Amendment Decree that many market participants are in favour of the legislator anticipating on developments in the financial markets, such as automated processes and advice. However, those market participants believe it too early to further regulate automated advice. For example, market participants have indicated that:
- there is insufficient knowledge on how automated advice will influence the advice that is given;
- the European Supervisory Authorities (EBA, ESMA and EIPOA) are still investigating whether any action is necessary to utilise the potential benefits of this development and to mitigate risks the associated risks; and
- financial institutions that are providing automated advice are currently already required to comply with the same requirements that apply when providing ‘regular’ advice.
In view of this feedback from market participants and the existing rules that apply to the provision of advice, the Dutch Minister of Finance has decided not to impose further requirements in relation to automated advice at this time.
View the Amendment Decree (Dutch only), 17 May 2017.
View the Consultation Report (Dutch only), 17 May 2017.