In May 2011, the AFM and the Dutch Central Bank ("DNB") published an explanation of their joint enforcement policy. The explanation highlights the practical circumstances which are relevant in deciding whether a violation has taken place and whether to proceed with enforcement. Amongst other items, the supervisors explain how they supervise compliance with financial laws and regulations, the principles on which their enforcement policy is based, the factors involved in applying available enforcement tools and their accountability for this.

The AFM and DNB mention, among other things, the following practical factors which affect their decision on whether to impose enforcement measures against a violator:

  • (Pro-active) disclosure of the violation to the supervisor;
  • The violator's initiative to terminate the violation;
  • The violator's cooperative attitude towards the supervisor;
  • Adequate follow-up to measures suggested by the supervisor; and
  • Management involvement with the violation.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.