Extension of covenant between DSI and AFM
The Financial Markets Authority (AFM) and the DSI Foundation have renewed the covenant on professional competence. This covenant, which has been in force since 2018, focuses on employees who advise or inform on investing. This is a tacit extension of two years, with no changes to the content.
“The renewal of this covenant underscores the importance of professional competence in the investment sector,” said Floris Mreijen, director-director of the DSI Foundation. “It confirms our joint commitment to ensuring the quality of service in the sector. By joining DSI you will be unburdened as an organization.”
DSI certified individuals are demonstrably skilled
The covenant is in line with the requirements of MiFID II and the guidelines of the European regulator ESMA. These requirements state that relevant persons – employees who inform or advise on investments – must be demonstrably and permanently competent. The AFM considers competent staff to be essential for careful client handling and high-quality services in the investment industry.
“We are very pleased with the continuation of this covenant,” Mreijen continued. “The DSI certifications are an initiative of the sector itself to increase trust. The recognition by the AFM confirms the quality and added value of a DSI registration.”
Always up-to-date with Permanent Proficient
The AFM and DSI have stipulated in the covenant that only persons who meet the ESMA guidelines will be admitted to one of the DSI ESMA registers. After admission, there is an obligation to keep knowledge up to date. To this end, DSI offers the Continuing Professional Education program, which is based on annually updated learning objectives. Trainers develop their PE programs based on these goals, so that certified persons continuously meet the set requirements.
The AFM recognizes that professionals listed in the DSI ESMA registers meet the requirements of professional competence. Currently, about 4,100 professionals are certified in one of DSI’s seven ESMA registries.
Broad corporate responsibility
For a financial firm, a DSI registration demonstrates that their employees are competent. However, ESMA guidelines additionally include broader organizational requirements for organizations to meet. For example, firms must establish, implement and ensure that employees comply with internal rules of conduct and procedures.
DSI registration is not mandatory. Firms that do not go for registration with DSI can demonstrate per employee directly to the AFM that they meet the requirements of professional competence. However, the covenant between DSI and AFM keeps compliance with the ESMA guidelines easier for firms in the sector. Most of the organizations covered by ESMA’s guidelines are affiliated with DSI.
Additional Information
- Link press release AFM – click here
- Link covenant AFM-DSI – click here
- Link MiFID II – click here
