The Dutch Authority for the Financial Markets (AFM) has launched an exploratory review of financial service providers and investment firms that provide services under the ‘national regime’, citing growth in this market and an increase in signals of non-compliance with applicable standards. The national regime is an exemption from part of the MiFID II requirements and can be used by firms that, for example, provide advice on investment funds. Under this regime, firms may only receive and transmit orders in investment funds and or provide investment advice on investment funds. The AFM highlights that firms must meet ongoing requirements set out in the Wft Exemption Regulation, including conduct rules on how clients pay their adviser, the ban on commissions, know-your-customer requirements and cost transparency. Firms selected for the exploratory review will be approached individually in the coming months, with the work expected to be completed around mid-year. Any follow-up action will depend on the outcomes, and a further investigation into compliance with the applicable conduct rules at other firms has not been ruled out.
Dutch Authority for the Financial Markets 2025-04-02
Dutch Authority for the Financial Markets launches exploratory review of services provided under the national regime exemption
The Dutch Authority for the Financial Markets (AFM) is reviewing financial service providers and investment firms under the 'national regime' due to market growth and increased non-compliance signals. This regime exempts firms from certain MiFID II requirements, allowing them to provide investment advice and transmit orders in investment funds, subject to ongoing compliance with the Wft Exemption Regulation. The AFM will approach selected firms individually, with potential follow-up actions based on review outcomes.