The Minister of Finance stated in a letter to the Second Chamber that the crisis has shown the need for a drastic reform of the financial sector. This would prevent that irresponsible conduct puts financial stability at risk. In addition to the current reforms, the Minister has proposed a number of shorter-term measures and a tightening or speeding up of existing or proposed regulation. The following measures are mentioned:
- statutory basis for powers of DNB and the AFM with regard to remuneration policy (see above)
- conditions concerning executive pay when providing new assistance to financial enterprises
- claw back and reasonableness assessment, and assessment of supervisory directors’ expertise
- firm contribution by the Netherlands to an international approach (amendment of Capital Requirements Directive, bank tax, and implementation of the Principles for Sound Compensation Practices of the Financial Stability Board)
- approval by the supervisory board of a remuneration policy for senior management
- tackling severance payments exceeding one year’s salary.