The Dutch Authority for the Financial Markets is examining under what conditions automatic rebalancing and automatic risk reduction, including life-cycle investing, could be offered within execution-only investment services. It plans to address this through a further development of its 2016 Guidance on the qualification of innovative services, in response to market requests for more clarity. The work is intended to reflect current developments in execution-only services without changing the boundary of execution-only business. The updated framework will focus on responsible innovation within legal limits, with customer interests as a guiding principle, and will also take account of the European landscape. The authority said its exploration is under way and expects to launch a market consultation on the proposed framework in the third quarter of 2026.
Dutch Authority for the Financial Markets2026-05-21
Dutch Authority for the Financial Markets explores updated guidance for automatic rebalancing and risk reduction in execution-only investing
The Dutch Authority for the Financial Markets is reviewing under what conditions automatic rebalancing and automatic risk reduction, including life-cycle investing, can be offered within execution-only investment services. It will update its 2016 Guidance on the qualification of innovative services to reflect current execution-only developments, emphasising responsible innovation within legal limits, customer interests and alignment with the European landscape.