AFM and KWINK group evaluate covenant on professionalism

The Netherlands Authority for the Financial Markets (AFM) is having research firm KWINK Group conduct an effectiveness audit of the professional competence covenant between the AFM and DSI. This covenant, which has been in force since 2018, helps professionals in the investment sector demonstrably meet the professional competence requirements from European regulations, such as MiFID II and the Wft.

Audit should provide insight into covenant effectiveness

Employees of investment firms who inform or advise clients about investments must have the appropriate professional competence. Through the covenant with DSI, if they are registered in one of the DSI registers, they can demonstrate that they meet these requirements. Registration in the DSI registers is a supportive tool in this regard: it is not a legal requirement and institutions can also demonstrate the professional competence of their employees in other ways.

AFM asks industry for honest insights

KWINK Group, which specializes in policy evaluations, is conducting the audit on behalf of the AFM. This will look at the effectiveness of the working method and the experiences of investment firms with the covenant. Starting in late September, KWINK group will approach various organizations on behalf of the AFM to gather input.