Fourth Tranche General Administrative Law Act

On 1 July 2009, the Fourth Tranche of the General Administrative Law Act (Vierde tranche Awb)1, the Act implementing the General Administrative Law Act (Fourth Tranche) (Wet wijziging boetestelsel financiële sector)2 and the Decree amending the General Administrative Law Act (Fourth Tranche)3 entered into force.

The fourth tranche contains general rules on monetary debt pursuant to administrative law, administrative enforcement (particularly administrative fines) and the allocation of powers to civil servants. The act and decree amend a large number of laws and decrees, including the Financial Markets Supervision Act (Wft), the Audit Firms Supervision Act (Wet toezicht accountantskantoren) and the Trust Offices Supervision Act (Wet toezicht trustkantoren).

Act amending the Penalty System under Financial Legislation (Wet wijziging boetestelsel financiële sector) On 1 August 2009, the 0Act amending the Penalty System under Financial Legislation and the Decree on Administrative Penalties under Financial Legislation (Besluit bestuurlijke boetes financiële sector) entered into force4. The Decree on Fines pursuant to the FMSA (Besluit boetes Wft) has been repealed. The new scheme allows regulatory authorities to impose higher fines. A maximum amount of EUR 4 million can be imposed for the most serious infringements (including insider trading). If the infringer made a profit of more than EUR 2 million from the infringement, a higher fine can be imposed. Regulators are also given increased flexibility regarding special circumstances. Finally, the entry into force of the Fourth Tranche of the General Administrative Law Act means that managing directors and those in actual control can also be fined.

These new rules apply to infringements that occur after the change in legislation has taken force.