AFM and DSI extend covenant on professional competence Posted on January 2, 2023 at 2:18 pm.Written by Roeland Jongejan AFM and DSI extend covenant on professional competence. The Netherlands Authority for the Financial Markets (AFM) and Stichting DSI (DSI) have extended the covenant they have had since 2018 with regard to the professional competence of employees who provide information or advice on investments. “Extending this covenant strengthens confidence in the investment sector,” said Tanja Nagel, chairman of Stichting DSI. This is a tacit extension of two years. This means that AFM and DSI will continue the agreement without amendments. DSI certified persons are demonstrably competent The covenant follows from professional competence requirements included in MiFID II. It states that anyone who informs or advises on investments (relevant persons) must be demonstrably ‘competent’. The requirements for this are described in guidelines from the European regulator ESMA. The AFM considers skilled personnel to be an important precondition for good investment services and careful treatment of clients. “We are very pleased with the continuation of the covenant with the AFM,” says Tanja Nagel. “DSI certifications are an initiative of the financial sector itself to strengthen confidence in the investment sector. Recognition of this certification by the regulator offers additional confirmation of the quality and added value of a registration in one of the DSI registers”. DSI certificates comply with ESMA guidelines The AFM and DSI have agreed in the covenant that DSI only admits relevant persons in its registers who comply with the ESMA guidelines. Once in the registers, the obligation to keep knowledge up-to-date applies. DSI has introduced the “Continuing Professional Education program (Permanent Vakbekwaam Programma)” for this purpose. Trainers offer this program to certified persons on the basis of learning objectives updated annually by DSI. In accordance with the covenant, the AFM recognizes that everyone included in a relevant DSI register is professionally competent. Currently, around 5,000 professionals from the investment sector are certified in one of the seven ESMA registers at DSI. ESMA guidelines apply to the entire investment firm A DSI registration for the relevant persons does not mean that the company fully complies with the ESMA guidelines. The standards in the guidelines are broader. For example, organizational requirements for the company have been included. Employees must also be aware of (and understand and apply) the company’s internal rules of conduct and procedures. Because the elaboration of this is specific to each company, it is not part of the certification at DSI. The extension of the covenant will make it easier for investment firms to comply with the ESMA guidelines. A DSI registration is not mandatory. Companies that do not want this can also demonstrate to the AFM for each employee that they are professionally competent and how this is organized within the organization. Additional information: Link to AFM-DSI covenant – click here Link to Include ESMA Guidelines – click here Link to MiFID II – click here Link to AFM press release – click here
ESMA Final objectives updated Posted on February 7, 2022 at 12:11 pm.Written by Roeland Jongejan DSI, together with its advisory committees and accreditation committee, has updated the so-called final objectives for the initial examinations of DSI-ESMA registers. Following on from this, we have asked the DSI accredited educational institutions to adjust the initial exams as well. With this, investment professionals entering from 1 January 2023 will take an exam that responds to the most important developments in recent years. A DSI certified investment professional meets the legal professional competence requirements. This professional has completed the necessary DSI-accredited exams and will complete the Continuing Professional Education Program. The exams meet the legal requirements drawn up by ESMA a few years ago. On the basis of these legal requirements, DSI, together with its advisory committees and accreditation committee, has established so-called attainment targets. The accredited exams are derived from this. This ensures that legally required knowledge components are part of the exams. Because these attainment targets were established a few years ago and additional themes have been added to the program in recent years (via the Continuing Professional Education program), DSI found it necessary to update the initial attainment targets. These have since been updated and adopted by the advisory committees and the accreditation committee. Look here for the updated final objectives. We have asked trainers to update the initial exams on the basis of these new attainment targets. It is expected that these updated exams will be administered from 1 January 2023. Of course, this update has no consequences for certified persons who have already completed the exam and who follow the Continuing Professional Education program. The update is intended to allow investment professionals entering the field to take an exam, including the most important developments from recent years. Do you have questions about the updated learning outcomes or general questions about the ESMA exams? Please contact our Certification department: certification@dsi.nl.