Financial markets
regulation:Bonaire,
Statia and Saba
The upcoming changes
Bert Hiensch
Policy advisor, Financial Markets
February 2012
Programme
Introduction by the Ministry of Finance
Address by the Nederlandsche Bank (DNB)
Address by the Authority for the Financial Markets (AFM)
2
Introduction by 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
Financial Markets Regulation, BES-islands
Area
Supervision
Legislation since October 10, 2010
Insurance Intermediation Act BES
Supervision of Banking and Credit Institutions
1994 Act BES
Legislation as per July 1, 2012
Financial Markets Act BES
Supervision of Investment Institutions and
Administrators Act BES
Supervision of Securities Exchanges Act BES
Supervision of Trust Service Providers Act BES
Supervision of the Insurance Industry Act BES
Disclosure of Control in Listed Companies Act
BES
AML/CFT
Identification (Provision of Services) Act BES
Disclosure of Unusual Transactions (Financial
Services) Act BES
Money Laundering and Terrorist
Financing Prevention Act BES
Cross Border Money Transports Act BES
Monetary system
4
Monetary System Act BES
Monetary System Act BES
Wfm BES
Financial Markets Act BES
Wfm BES
Official Journal
Financial Markets Decree BES
Bfm BES
State Council
Financial Markets Regulation BES
Rfm BES
Under preparation
Supervisory Regulation (DNB)
5
Under preparation
Why new legislation?
Harmonisation
Updating (Bazel II)
Introducing conduct of business rules
Twin peaks model
6
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
7
Specific changes (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
8
New rules on 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
9
Specific changes (insurance companies)
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)
10
Specific changes (insurance intermediaries)
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”
11
Other changes
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
12
Charging supervisory expenses
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
13
Non-recurring expenses
Who
What
Bank
License (seat)
Insurance company
USD
10.000
License (branch)
5.000
License (seat)
8.000
License (branch)
4.000
Bank or insurance company
Testing a new policymaker
500
Intermediary (legal person)
License (seat or branch)
500
Testing a new policymaker
500
License
250
Intermediary (natural person)
14
Yearly expenses
Who
Criterion
USD/year
Min-max
Bank having its seat in the BES
Customers
Deposits (CD)
1.000/
5 mln CD
2.000-25.000
Bank having its seat abroad
Customers
Deposits (CD)
500/
5 mln CD
1.000-9.000
Insurance company with seat
abroad
Gross
premiums (GP)
500/
0,25 mln GP
1.000-8.000
Intermediary (legal person)
500
(fixed tariff)
Intermediary (natural person)
250
(fixed tariff)
15
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
16
Conclusion/questions
[email protected]
T. 0031 (70) 342 89 65