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Revised Agreement Between the AFM and DSI

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Agreement Between AFM and DSI Renewed: Check Whether You Meet the Professional Competency Requirements

With a DSI registration, investment professionals can demonstrate their professional competence. This registration is not mandatory, but it is a way to meet the professional competence requirements recognized by the Netherlands Authority for the Financial Markets (AFM). This will remain the case in the coming years. The AFM and the DSI Foundation have entered into a new agreement. It will take effect on January 1, 2027; there are no changes to the professional competence requirements.

In brief

With DSI certification, companies can demonstrate their professional competence
Independent research shows that the agreement is effective and efficient
New agreement effective January 1, 2027; no changes to professional competency requirements
DSI registration is a method recognized by the AFM as a way to comply; it is not a requirement. Be sure to verify that you are in compliance.

With DSI certification, companies can demonstrate their professional competence

Employees of investment firms who provide information or advice on investing must possess the appropriate professional competence to properly fulfill their responsibilities. Through the agreement with DSI, investment firms and banks can demonstrate that employees who are registered in one of the relevant professional competence registries are professionally competent.

The AFM and DSI have had an agreement on this matter since 2018. This agreement is intended to support compliance with the professional competence requirements set forth in the Professional Competence Regulation and relevant ESMA guidelines. The current agreement expires at the end of 2026 and has been tacitly renewed twice without changes since 2018. The agreement that takes effect in 2027 has been slightly amended.

“Through the agreement with DSI, investment firms and banks can demonstrate that their registered employees are professionally competent.”

Independent research shows: the agreement is effective and efficient

Before entering into a new agreement, the AFM assessed whether it was still sufficiently effective and whether any adjustments were needed. For this reason, the AFM commissioned an effectiveness audit by the independent research firm KWINK Group. The AFM also asked investment firms and banks how they ensure the professional competence of employees who provide information or advice on investing.

The agreement has proven to be effective and efficient in supporting compliance with professional competence requirements. There is broad support for DSI certification. In addition, most banks and investment firms have ensured the professional competence of (some of) their employees through a DSI-accredited training program. These are reasons for the AFM to continue its collaboration with DSI.

New agreement effective January 1, 2027; no changes to professional competency requirements

The new agreement takes effect on January 1, 2027, and has a term of five years. It contains updated references to laws and regulations, as well as several new agreements between the AFM and DSI. These agreements are intended to ensure that training programs are better aligned with professional practice and to provide greater assurance regarding the quality of training offerings and customer satisfaction. The professional competence requirements for employees of banks and investment firms who provide information or advice on investing remain unchanged.

DSI registration is a method recognized by the AFM as a means of compliance; it is not a requirement. Be sure to verify that you are in compliance.

The DSI registries offer your company a way to document employees’ professional competence in a verifiable manner. A DSI registration is not required by law, but it is a method recognized by the AFM for meeting professional competence requirements. You can also demonstrate in other ways that employees who provide information or advice on investing possess the appropriate professional competence.

It is important that you document how you have ensured that employees meet the professional competence requirements set forth in the Professional Competence Regulation and relevant ESMA guidelines. You must also be able to demonstrate this. Does your (investment) firm have employees who provide information or advice on investing? If so, verify that you meet the professional competence requirements. For more information, visit the AFM website: Knowledge and Competence.