The Dutch Authority for the Financial Markets (AFM) published a draft interpretation of Articles 16 and 16b of the Dutch Audit Firms Supervision Act (Wta) and invited the accountancy sector and other market participants to comment, aiming to clarify how the provisions should be applied amid growing private equity investment in the sector. Articles 16 and 16b are intended to ensure that accountants hold a central position within an audit firm at both board and shareholder level: Article 16 requires that day-to-day policy is determined in the majority by accountants, while Article 16b requires that the majority of voting rights is held by accountants. The AFM said discussions with audit firms, external investors and legal advisers revealed differing interpretations, and the draft provides additional explanation of the underlying principles in line with the law and its legislative history to support a more consistent and practicable application. Responses can be submitted until 3 March 2026. After the consultation period, the AFM will assess the feedback, amend the interpretation where necessary, and publish a final version alongside a feedback statement explaining how consultation input was handled.

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