AFM

About AFM

The Autoriteit Financiële Markten (AFM) is the Dutch financial market regulator responsible for supervising the conduct of financial institutions and professionals in the Netherlands. Established in 2002, the AFM has been tasked with promoting transparent, fair, and efficient financial markets in the country.

AFM History

The AFM was established in response to a series of financial scandals that occurred in the Netherlands during the late 1990s and early 2000s. These scandals highlighted the need for an independent regulator to oversee the financial industry and ensure that consumer interests were protected.

The AFM was created as a public law entity with its own budget and decision-making powers. Its primary role was to supervise and regulate financial markets, including banks, insurance companies, pension funds, and other financial institutions. Over the years, the AFM has played a crucial role in ensuring the stability of the Dutch financial system.

AFM Scope

The AFM is responsible for supervising the conduct of financial institutions and professionals in the Netherlands. Its scope includes monitoring the behavior of banks, insurance companies, investment firms, pension funds, and other financial institutions. The AFM also supervises the conduct of financial professionals, such as brokers, investment advisors, and asset managers.

The AFM’s mandate is to ensure that financial markets are transparent, fair, and efficient. It does this by enforcing laws and regulations governing the financial sector, as well as by promoting good governance and risk management practices. The AFM also conducts market research and publishes reports on trends and developments in the financial sector.

AFM Supervision

The AFM is responsible for supervising the conduct of financial institutions and professionals in the Netherlands. It does this by conducting regular inspections, investigations, and audits of financial firms and professionals. The AFM also has the power to impose fines and sanctions on firms and individuals that violate financial regulations.

The AFM has a proactive approach to supervision, which means that it seeks to prevent problems before they occur. It does this by providing guidance to financial firms and professionals on how to comply with regulations and by monitoring their behavior on an ongoing basis.

AFM Capital Guarantee

The AFM is responsible for ensuring that financial institutions in the Netherlands have sufficient capital to withstand unexpected losses. It does this by setting capital requirements for banks, insurance companies, and other financial institutions.

The AFM also monitors the financial health of these institutions and takes action if they are at risk of failing. In the event of a bank failure, the AFM works with the Dutch Central Bank to ensure that depositors are protected and that financial stability is maintained.