Kingdom of the Netherlands-Netherlands: Financial Sector Assessment Program:

The governance, accountability, and internal processes of the supervisors, operating under a well-functioning twin-peaks model, are robust. With two-tier boards that include independent members, and an internal audit department, the governance structure of both supervisors is vigorous. Detailed documentation supports the internal processes. The planned activities, several regular publications, and comprehensive reporting result in enhanced transparency and accountability of the supervisors. The Netherlands Central Bank (De Nederlandsche Bank N.V.; DNB) and the Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten; AFM) have created second lines of defense that control the quality and consistent application of the supervision. Information sharing and cooperation between the DNB and AFM is well established and allows for the proper functioning of the twin-peaks model. At the time of the 2016 FSAP, the AFM had been operating under a newly adopted structure for only a few months. The AFM structure needs to reach maximum functionality and efficiency, and strong guidance from the board is required to effectively support its supervisory vision and approach.