The cabinet has approved the Decree on Administrative Fines in the Financial Sector. This decree provides the manner and amount in which the Dutch Central Bank and the AFM can impose fines on financial enterprises and persons who breach financial laws. Several categories of fine are mentioned. In the case of repeated violations, for example, a higher fine can be imposed.
The decree is connected with the Bill Amending the System of Fines with regard to Financial Legislation, which is to be discussed in the Second Chamber of Parliament in the near future. The Bill provides for an increase in administrative fines to a maximum of EUR 2 million. The maximum fine is currently EUR 500,000. In the case of benefiting from market manipulation and insider trading the fine may even rise to twice the value of the benefit obtained.
The cabinet has agreed that the draft Decree should be submitted to the Council of State for its advice. The text of the Decree will be published in the Official Gazette (Staatsblad).
