3.6.2 Division of labour between AFM and DNB

On 1 January 2007 the Netherlands adopted the so-called twin peaks regulatory model. This model is first and foremost reflected in the division of labour between the conduct of business regulator AFM (Stichting Autoriteit Financiële Markten) and prudential regulator DNB (De Nederlandsche Bank N.V.).1 The AFM is the conduct of business supervisor for all financial institutions subject to conduct supervision. DNB, on the other hand, is the prudential regulator for all financial institutions subject to prudential supervision. In line with the EU regulatory framework, financial institutions such as banks, investment firms, insurance undertakings, managers of UCITS and AIFs are subjected to both conduct and prudential supervision and are therefore supervised by both the AFM and DNB. This division of responsibility for supervision means that AFM and DNB have to collaborate closely. The effect in practice is that their approaches and interpretations tend to converge.