Abolition of government contribution to financial supervision
Robust financial supervision is essential for confidence in the financial sector and its correct functioning. The government will change the way it is funded with effect from 1 January 2015. Based on the principle that the sector profits from good supervision, the cabinet has agreed to a proposal by the Minister of Finance, Jeroen Dijsselbloem, to amend the Financial Supervision (Funding) Act and will abolish the government's annual contribution to financial supervision. Furthermore, fines and penalties in excess of € 2.5 million will no longer return to the sector but will accrue to the State.
Government's contribution to be recharged
Abolishing the annual contribution and recharging it to the financial sector will save the government nearly € 40 million. The total cost of supervision exercised by the Dutch central bank (DNB) and the Netherlands Authority for the Financial Markets (AFM) in 2014 is budgeted at more than € 220 million. The financial sector itself must bear this cost in full from next year.
Cost of ECB's supervision to be recharged
In anticipation of the new supervisory tasks of the European Central Bank (ECB), the balance sheets of 'significant banks' are currently being studied in detail. Under the new legislation, the one-off cost of this supervision (estimated by DNB at between € 42.5 million and € 61.7 million) will be borne by the significant banks. The government considers it disproportionate to have other parties bear this cost.
Allocation of penalties and fines
Extremely high penalties and fines can be imposed for serious crimes in the financial sector, as much as 10% or 15% of turnover. The government thinks it is unjust to give the proceeds of a fine back to the sector and therefore intends to allocate those in excess of € 2.5 million per supervisor per annum to the treasury.