AFM and DSI extend covenant on professional competence

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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

Amsterdam stock exchange opening by DSI and Validata

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Collaboration agreement DSI Foundation and Validata

The DSI Foundation and Validata together stand for honest and reliable professionals in the investment sector. On the occasion of the collaboration in the field of the screening of DSI certified professionals, Floris Mreijen, General Manager of DSI since the 1st of April, opened the Amsterdam stock exchange together with Validata this morning the 5th of July.

The DSI Foundation was established on 14 April 1999 as a self-regulatory institute for the investment sector. DSI Foundation’s core task is to work with the sector to ensure that society has greater trust in the financial sector. DSI does that by:

  • Formulating norms for knowledge, skills en integrity;
  • Accrediting examinations and educational programmes;
  • Certifying professionals who meet the stated DSI norms, and listing these professionals in the DSI Public Register;
  • Holding Certified Professionals accountable for violations of the DSI Code of Conduct through DSI Ethics Enforcement.

Employment screening of DSI certified persons

An employment screening is part of a certification application at DSI. With this we provide an extensive check of professionals in the field of work experience and training at the front of a DSI registration. To carry out this employment screening, the board of DSI has opted for the services of Validata Group. DSI currently carries out this screening itself. The collaboration is expected to start after the summer. DSI participants will receive further notice from which date this will be.

Why Validata Group

Validata Group is a professional screening organisation with many years of experience in the field of employment screening Validata places a high value on quality certifications (incl. ISO), IT security and privacy. Validata has a modern IT platform that supports or facilitates all of the most common connections with (potential) customers’ HR software applications. Plus, Validata already serves many major employers in the financial sector. That gives us every confidence that Validata is the high-quality professional and flexible partner with whom DSI and our clients can do business, both today and in the future.

Questions about the competence of investment professionals?

If you have any questions about DSI Certification, please visit the FAQ page with answers to the most frequently asked questions. If you cannot find your question in the FAQ page, or you need personal advice about requesting a specific certification, please feel free to contact us by mail at: certificering@dsi.nl or call us at 020-6201274. We would be happy to help you!

DSI stopped screening professionals

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Starting from 1 April 2022, it is no longer possible to request a DSI screening if the screening is not part of a DSI certification process. DSI will cease conducting screenings entirely as of 30 June 2022. DSI will continue with screenings as part of a DSI certification request for the time being.

Focus on core task

The DSI Foundation has decided to scale back DSI’s screening activities in 2022. This choice was motivated by the foundation’s aim to focus on its core task. DSI was founded more than 20 years ago as a self-regulation institution for the financial sector. DSI Foundation’s core task is to work with the sector to ensure that society has greater trust in the financial sector. DSI does that by:

  • Formulating norms for knowledge, skills en integrity;
  • Accrediting examinations and educational programmes;
  • Certifying professionals who meet the stated DSI norms, and listing these professionals in the DSI Public Register;
  • Holding Certified Professionals accountable for violations of the DSI Code of Conduct through DSI Ethics Enforcement.

DSI will continue to conduct screenings as part of a DSI certification

DSI will continue to conduct screenings as part of a DSI certification. DSI ceased conducting screenings that are not part of a DSI certification request as of 1 April 2022.

Alternative for new screenings after 1 April 2022: Validata Group

DSI strives to offer its screening clients a quality alternative for employee screenings. So we are pleased to announce that after a careful selection process, the Board of DSI has chosen Validata Group to conduct employee screenings.

Why Validata Group?

Validata Group is a professional screening organisation with many years of experience in the field of employment screening Validata places a high value on quality certifications (incl. ISO), IT security and privacy. Validata has a modern IT platform that supports or facilitates all of the most common connections with (potential) customers’ HR software applications. Plus, Validata already serves many major employers in the financial sector. That gives us every confidence that Validata is the high-quality professional and flexible partner with whom DSI and our clients can do business, both today and in the future.
Validata Group would be happy to discuss a potential partnership for screening your organisation’s employees. Click here for more information about Validata Group, their work methods, screening solutions and rates.

DSI will process current screening requests until 1 May 2022.

DSI will continue to process screening requests received before 1 April 2022. Professionals that had a request open on 1 April 2022 will have until 1 May 2022 to submit all of the necessary information. If the submission is not complete by then, DSI will no longer issue a screening report.

All open screening requests must be completed by no later than 30 April 2022.

On 1 May 2022, all screening requests with the following statuses will be archived:

  • Status ‘New’
  • Status ‘Incomplete’
  • Status ‘Not complete’

DSI will no longer issue screening reports for these screening requests after the deadline.

Special rate for screenings with the status ‘Not complete’

DSI will not send an invoice for every open screening request. Screening requests with the status ‘Not complete’ on 1 May 2022 will be billed for only 50% of the relevant screening fee. A standard DSI Pre-Employment Screening will cost € 67 ex VAT, or 50% of € 134 ex VAT. DSI will charge this amount for screening requests with the status ‘Not complete’, because DSI Screening Officers have worked on the requests and the request has been returned to the applicant to respond to feedback from DSI. This is not the case for other statuses, such as ‘Incomplete’, for which the DSI Screening Officers have not yet begun work.

The MijnDSI Employer Portal dashboard shows which screenings are linked to you as an employer, and their status.

Do you have any further questions?

If you have any questions about DSI Certification, please visit the FAQ page with answers to the most frequently asked questions. We have created this DSI Certification FAQ page to offer you as a professional or employer practical tips on how to find your way in the DSI Certification process. The site also explains how to use the MijnDSI environment.

If you cannot find your question in the FAQ page, or you need personal advice about requesting a specific certification, please feel free to contact us by mail at: certificering@dsi.nl or call us at 020-6201274. We would be happy to help you!

Floris Mreijen new Director of DSI Foundation

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The Board of the DSI Foundation is pleased to welcome Floris Mreijen as the new Director of the DSI Foundation as of 1 April 2022. He will take over from Joost Melis, who served in the position on an adjunct basis.

Floris Mreijen has served in a variety of leadership positions at the Nederlandse Vereniging van Banken (Dutch Banking Association, NVB) for the past several years, where he acquired a wealth of experience and knowledge in managing and developing the vital branch association for the financial sector. Throughout his career, Floris Mreijen has advocated for issues related to integrity, sustainability, and the consumer’s trust in financial institutions. Floris’ most recent post was as Adjunct Director of the NVB.

DSI Board President Tanja Nagel is pleased with Floris Mreijen’s arrival: “The needs of consumers, professionals and financial institutions is subject to many changes, and DSI must continue to adapt to these changes. Moreover, fair and honest behaviour and professional expertise are essential issues in our sector and in society at large. We appreciate that Floris Mreijen will now devote his knowledge, experience and network for the benefit of our foundation. Together, we will continue to build the DSI Foundation and strengthen the public’s trust in the investment sector.”

DSI Foundation wishes to thank Joost Melis for his contributions to strengthening trust in the investment sector as Adjunct Director of DSI.

ESMA Final objectives updated

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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.

Stichting DSI focuses on core task

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The Board of Stichting DSI has decided to phase out its screening activities in 2022. The choice was prompted by the foundation’s wish to focus again on its core tasks.

The core task of the Stichting DSI, together with the sector, is to ensure greater public confidence in the investment sector. DSI does this by:

  • Formulating standards for knowledge, skills and integrity;
  • Accrediting exams and training programs;
  • Certifying professionals who comply with the standards drawn up by DSI and registering these professionals in the DSI Public Register;
  • Addressing certified persons who violate the DSI code of conduct through DSI Disciplinary Law.

DSI Screening

In addition to employers from the investment sector, other employers from the financial sector also use DSI Screening, such as accountants. The personnel screening market is developing rapidly. To remain successful in personnel screening and to continue to meet customer needs, DSI needs substantial investment budgets and capacity to respond to developments. As a foundation, DSI does not have these budgets and capacity. The available budget and available capacity are necessary to fulfill the core task: ensuring greater public confidence in the investment sector.

What does this mean for DSI Screening customers

DSI is phasing out DSI Screening. The dismantling will not start immediately. Until at least the first quarter of 2022, the screening of personnel will be carried out by DSI. DSI strives to outsource the screening of personnel to a third party and periodically informs its customers about the progress.

What does this mean for DSI Certificering customers

DSI focuses on certifying professionals from the investment sector. DSI continues to screen existing and new staff for employers in the investment sector. For the time being, DSI will continue to do this itself. The screening of personnel will be carried out by DSI at least until the first quarter of 2022. DSI strives to outsource the screening of personnel to a third party. Of course, when selecting a third party, DSI takes the security & privacy requirements of our customers into account.

What this means for DSI employees

The employees of DSI were informed about the board decision in the morning of November 23, 2021. DSI periodically informs its employees about the progress and possible consequences of this decision.

Questions?

Do you have questions about this? For more information, please contact: pers@dsi.nl and/or telephone number: 020-765 28 88.

DSI Anual Report 2020

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DSI Foundation published its annual report for 2020 today. The annual report is available in digital format at www.dsi.nl/jaarverslag-2020.

DSI strives to realise an incident-free investment sector and financial market where consumers have confidence in financial professionals, based on their expertise and integrity. We contribute to that goal by offering employee screening, certification and ethics enforcement services. In 2020, DSI supported more than 12,750 professionals.

DSI believes that integrity and professional expertise are inseparably linked. A professional who is an expert in their field may still present a tangible risk to
consumers, employers and the entire financial sector if they do not act in a fair and honest manner. Only by paying constant attention to both can we make and keep the financial sector reliable.

In this annual report, we feature several DSI stakeholders’ opinions on the importance of integrity and professional expertise for a healthy future of the finance profession.

“I’m convinced that almost everyone has a good moral compass”, states DSI Board President Tanja Nagel in her interview. “It’s important and in the client’s interest for professionals to continue exercising their minds and creativity, and not just to tick off the boxes.” It is DSI’s duty to facilitate that.

Lukas Daalder, Managing Director of BlackRock and popular columnist in Het Financieele Dagblad, underscores the importance of integrity and posits that open discussion of dilemmas is the foundation of fair and honest behaviour. “An honest recommendation is based on as many perspectives as possible.”

Clemens Spoorenberg, Chairperson of the DSI Accreditation Committee, offers his vision of the importance and success of the Life-Long Learning programme that was created in 2020. “In the Life-Long Learning programme, Certified Professionals and candidates show that they are up-to-date regarding the knowledge in their field on an annual basis.”

Rob Wesselius, Business Manager Financial Markets at ING Wholesale Banking, has received positive internal feedback about the Life-Long Learning programme. “Our employees receive articles and questions. The model is practical and refreshing, in part because it deals with slightly different subjects than our employees would face within ING or their own specialist field.”

In his work as an Ethics Enforcement attorney at DSI, Mark van der Lecq draws connections between corporate culture, fair and honest behaviour and DSI Ethics Enforcement. “Ethics cases shouldn’t just deal with the foot soldiers, but also the generals. They’re so important for the culture, and they determine how the organisation breathes when it comes to integrity.”

The final interview with the DSI management team discusses DSI’s results in 2020, which was a dynamic year in many respects.

Read the complete annual report with all interviews and background information at www.dsi.nl/jaarverslag-2020