Financial markets regulation:Bonaire, Statia and Saba

1. Financial markets regulation:Bonaire, Statia and Saba The upcoming changes Bert Hiensch Policy advisor, Financial Markets February 2012

2. Programme • Introduction by the Ministry of Finance • Address by the Nederlandsche Bank (DNB) • Address by the Authority for the Financial Markets (AFM)

3. Introductionby the Ministry of Finance • New legislation: what and why • Wfm BES and Wwft BES • Upcoming changes • overall changes • changes per category of financial enterprises • (Sources of) further information

4. Financial Markets Regulation, BES-islands

5. Wfm BES

6. Whynewlegislation? • Harmonisation • Updating (Bazel II) • Introducing conduct of business rules • Twin peaks model

7. Overall changes • Allocation of supervisory tasks (DNB and AFM) • Harmonised supervisory instruments, e.g.: requesting information, issuing an instruction, imposing an administrative penalty • Charging supervisory expenses

8. Specificchanges (banks) • What remains unchanged? • No separate reporting by branches • Uniform reporting formats • What does change? • Introduction of Basel II • New conduct of business rules, a.o. on the extension of credit • (See also: insurance intermediation) • Deposit Guarantee Scheme

9. New ruleson the extension of credit • Note1 Rules apply to all providers of credit • Note2 Credit intermediaries will also be subject to supervision • Disclosure of information and rules on advertising • Assessment of creditworthiness • Maximum lending fee • Right of revocation

10. Specificchanges (insurancecompanies) • What remains unchanged? • No separate reporting for branches • Insurance-specific provisions • Legal position and remuneration of insurance intermediaries • What does change? • Information to be supplied to the consumer • Right of revocation (life assurance with duration > 6 months) • Disclosure of commissions for life assurance (capital and annuities) • Credit regulation (mortgage credit)

11. Specificchanges (insuranceintermediaries) • What remains unchanged? • Professional expertise requirement • Legal position and remuneration of insurance intermediaries • (right to portfolio and commissions) • What does change? • Information to be supplied to the consumer (role of the intermediary) • Disclosure of commissions for life assurance (capital and annuities) • “Remuneration should not be such as to prejudice or possibly • prejudice the interests of the consumer or client”

12. Otherchanges • Extended scope of the legislation to include: credit providers, credit intermediaries, advisors, portfolio managers, electronic money institutions • Controlled and sound operations • Professional expertise employees • Suitability test for policy makers

13. Chargingsupervisoryexpenses • Sector will be charged for supervisory expenses • Tariffs will cover only (a small) part of expenses • Non-recurring expenses: starting July 1, 2012 • Yearly contributions: starting 2013

14. Non-recurringexpenses

15. Yearlyexpenses

16. Further information • Market participants • On legislation: Ministry of Finance • On supervisory issues: DNB and AFM • Public • Ministry of Finance, in cooperation with supervisory authorities and market participants

17. Conclusion/questions a.g.hiensch@minfin.nl T. 0031 (70) 342 89 65