AFM survey underscores: professional competence is more than a checkmark
The Financial Markets Authority (AFM) recently shared the results of a risk-based survey of smaller asset managers. Although the focus is on broader standards for investor protection, one specific area of improvement immediately stands out for DSI: ensuring demonstrable professional competence and managing conflicts of interest. The report confirms the crucial role of the DSI system within the industry.
In the report “Meeting investor protection standards: what does it mean for you?” the AFM shares a number of key areas for improvement. For you as an investment firm, it is essential that employees who inform or advise clients have the right knowledge and skills. The AFM emphasizes that you can test and guarantee this very effectively through a DSI registration. Do you opt for an alternative? Then you bear the burden of proof yourself to demonstrate that your employees comply with the rules.
From paper checkmark to behavior of integrity
In addition to professional competence, the regulator puts its finger on managing conflicts of interest and transparency. Integrity and professional competence are inseparable. It’s not just about knowing the laws and regulations, but how you apply them in your daily work. Especially when situations become ‘gray’.
The DSI system is set up exactly for this transition from theory to practice. Through certification, Continuing Professional Education and Ethics Enforcement, we offer you and your organization the tools to show that you act according to the highest standards in the industry.
Cooperation with the AFM anchored in a covenant
Ensuring this quality is not something we do alone, of course. The cooperation between DSI and the AFM is firmly anchored in a covenant. This covenant underlines our shared responsibility to monitor and strengthen trust in the financial markets. The AFM’s periodic surveys and guidance documents are an important gauge for DSI to continuously keep certification and education requirements sharp.
Independent audit by Kwink Group
To continue to ensure the quality and effectiveness of self-regulation through DSI, our system is subject to periodic independent audits. Recently, research firm Kwink Group conducted a comprehensive audit of the functioning of the DSI system.
The results of this research are incredibly valuable for the future of professionalism and ethics enforcement in the Netherlands. Behind the scenes we are currently finalizing the analysis of these results. Soon we will go public with the AFM to give the sector more clarity about the results and the next steps.
Join the industry standard
The AFM report shows that supervision of investor protection remains as sharp as ever. For investment firms, affiliation with DSI offers peace of mind and security: you make use of a tried and tested system with which you can immediately demonstrate to the supervisor that your employees meet the highest requirements.
Do you have questions about the AFM standards related to professional competence, or want to know how your organization can become a DSI participant? Contact us or read more about the benefits of becoming a participant here.
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