Financial watchdog may get more powers

The financial sector watchdog AFM may get more powers to act on ‘undesirable rewards’ in the financial services sector, the NRC reports on Wednesday.

The paper quotes finance minister Wouter Bos as saying he was looking to ‘create the legal basis’ to give the AFM more room to impose sanctions. The central bank already has enough power to intervene if it feels that the reward structure is leading to unnecessary risks, Bos said.
Bos told MPs on Tuesday the central bank will publish a new rewards structure which can be imposed on banks by May 1. But he warned that the debate over pay in the financial services sector should not lead to a witch hunt.
‘It is my responsibility to make sure that the supervisory sector has good tools but not that I should get involved with every part of the pay policy of individual banks,’ the paper quoted Bos as saying.
It is not clear how boosting the role of the AFM relates to the gentlemen’s agreement on bonuses agreed by Bos and the banks last month.

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