19-01-2010
Dutch Banking Code entered into effect

On 1 January 2010 the Dutch Banking Code (hereinafter: the “Code”) entered into effect. The Code was established on 9 September 2009 by the Netherlands Bankers’ Association (“Nederlandse Vereniging van Banken” or “NVB”) as a means of retrieving confidence in the Dutch banking sector. It represents a form of self-regulation based on the report of an advisory committee (“Adviescommissie Toekomst Banken” or “Commissie Maas”) that was installed in 2008 for investigating the future of banking in the Netherlands.

The Code applies to all banks having been granted a banking license pursuant to the Dutch Financial Supervision Act (“Wet op het financieel toezicht”) and sets forth principles of good governance for the operation of executive and supervisory boards, risk management, auditing and the remuneration of executives.

Banks that are governed by the Code are to adhere to its principles, yet are allowed to deviate if explained and substantiated in their annual reports (“comply-or-explain” principle). More so, banks presenting their annual report for the financial year 2009 shall be held to explain on their website what preparatory steps have been taken in 2009 to ensure compliance with the Banking Code from 1 January 2010 onwards.

Compliance with the Code shall be annually monitored by an independent monitoring committee, to be appointed by the NVB in consultation with the Dutch Minister of Finance. In time the Code shall be provided with a statutory basis.

An English version of the Code can be downloaded from www.nvb.nl.

For more information please contact Steven Geerlings (geerlings@vmw.nl) or Ramon Budik (budik@vmw.nl)