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Financial Markets Regulation: Changes in Bonaire, Statia, and Saba

This program introduces upcoming changes in financial markets regulation for Bonaire, Statia, and Saba. Learn about new legislation, harmonization efforts, conduct of business rules, and the twin peaks model. Specific changes for banks, insurance companies, and intermediaries are discussed, including reporting formats, credit extension rules, and consumer rights. The legislation now covers a broader scope of financial enterprises, with increased focus on professional expertise and suitability tests for policy makers. Find more information from the Ministry of Finance, DNB, and AFM.

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Financial Markets Regulation: Changes in Bonaire, Statia, and Saba

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  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

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