Operational supervisory practice consists of several types of activities:
- collecting information on supervised collective investment schemes and their management companies and assessing their compliance with the supervisory requirements;
- guiding and intervening in supervised collective investment schemes in the event of non-compliance with supervisory requirements.
Once a collective investment scheme has been allowed access to the market, the supervisory practice consists in concrete terms of collecting and assessing information. DNB collects information by receiving (semi-)annual accounts and possibly other documentation, conducting discussions and carrying out on-site investigations.
More indirectly, DNB also uses information from analyses of developments in the financial sector and from contacts with other supervisory authorities. DNB is also empowered to make very specific requests for information from the collective investment scheme or its management company as well as from other parties involved. Based on the information, DNB carries out prudential analyses. The information and analysis together form the basis for the assessment whether a collective investment scheme, or its management company, is complying with the supervisory requirements.
The application of a risk-based supervision method means that the supervision requirements are geared to the risk profile of the collective investment scheme or its management company. DNB uses the risk profile to set priorities in operational supervision.
In supervisory practice, DNB works closely together with other domestic and foreign supervisory authorities. In the context of the Wft, it cooperates in particular with the Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten / AFM). This cooperation includes:
- determining secondary legislation on subjects relevant to both prudential supervision and market conduct supervision;
- exchanging information and determining concrete supervisory activities;
- advance consultation on specific supervisory measures with significant impact.
The cooperation between DNB and AFM is described partly in the Wft and partly in a separate covenant. In cases involving investment firms operating internationally, DNB also cooperates with the supervisory authorities in the other countries where the undertaking is active.