The Dutch Authority for the Financial Markets (AFM) has outlined its approach to reducing unnecessary regulatory burdens through more effective, understandable and proportionate rules, without weakening consumer and market safeguards. It is contributing to national and European simplification initiatives, including in cooperation with the Ministry of Finance. The approach echoes AFM Chair Laura van Geest’s remarks at the Great Simplification symposium on Oct. 29, where she urged policymakers to consider what could be removed from government systems rather than focusing only on additions or better rules.
Priorities include simplifying existing obligations and critically examining national choices when implementing European legislation. The AFM also seeks to streamline policy rules, guidance and interpretations, and improve processes and interaction with regulated firms. Both existing and proposed rules should be assessed for necessity, effectiveness and practical application, rather than alternating between tightening after crises and subsequent relaxation. Industry proposals are welcome, but the AFM will assess them independently, with the impact on consumers and markets guiding decisions. Not all rules can or should be changed, and simplification requires care to avoid introducing new risks or making supervision harder to carry out.