The Dutch Authority for the Financial Markets has published a new framework for assessing the suitability of policymakers at audit firms. It extends the existing approach beyond public-interest entity audit firms to the largest regular-license audit firms, reflecting an expected legislative change. The expanded scope covers firms that generate at least EUR 3 million in statutory audit revenue for three consecutive financial years and conduct at least 150 statutory audits annually. Suitability is assessed through current knowledge, skills and professional conduct across governance and communication, products and markets, controlled and ethical operations, balanced decision-making and sufficient time commitment. Assessments are proportionate to the policymaker’s role and the firm’s size, complexity and risk profile, and take account of the composition and functioning of the relevant leadership group. Testing takes place before appointment, licensing or a significant portfolio change, and may be repeated after appointment where facts or circumstances provide reasonable grounds. Following consultation, the authority clarified the timing of assessments and generalized references to sustainability reporting assurance because the related implementing legislation may not yet be in force. The framework is intended to take effect on Jan. 1, 2027, alongside the expected entry into force of the accountancy sector reform law, and will replace the existing suitability policy.
2026-08-19Dutch Authority for the Financial Markets
Dutch Authority for the Financial Markets publishes expanded suitability framework for leaders of major audit firms
The Dutch Authority for the Financial Markets has published an expanded suitability framework for leaders of audit firms, including regular-license firms with at least EUR 3 million in statutory audit revenue for three consecutive years and 150 statutory audits annually. Assessments will cover knowledge, skills, professional conduct and time commitment, calibrated to the individual’s role and the firm’s risk profile. The framework is intended to take effect on Jan. 1, 2027, alongside the expected accountancy sector reforms.