Under the Financial Supervision Act (Wet op het financieel toezicht / Wft) and the pension legislation, i.e. the Pension Act (Pensioenwet / Pw) and the Obligatory Occupational Pension Schemes Act (Wet verplichte beroepspensioenregeling / Wvb), DNB and AFM are responsible for the prudential and conduct of business supervision of financial undertakings and pension administrators respectively. AFM also supervises accountancy firms under the Act on the Supervision of Accounting Organisations (Wet toezicht accountantsorganisaties / Wta). The responsibilities and powers of AFM and DNB are recorded in the various supervisory statutes. The Wft and the pension legislation also specify how and in what areas the supervisors should cooperate.
AFM and DNB signed a new covenant on 2 July 2007. This replaces the previous covenant between them. The covenant had to be renewed following the entry into force of the Wta on 1 October 2006 and of the Wft, Pw and amended Wvb on 1 January 2007.
The Wta, Wft, Pw and Wvb (and the decree implementing the Pw and Wvb) contain rules on how DNB and AFM should cooperate in supervising financial undertakings and pension funds and on the areas of their cooperation. To supplement and elaborate this statutory cooperation, further agreements have been made in the covenant to avoid potential overlap and to ensure that the supervision is carried out efficiently and effectively. Where possible and worthwhile, the supervisors thus make use of the information and expertise available to them (taking account of the relevant statutory provisions on confidentiality) and of the infrastructure available to them for requesting information and data from supervised financial undertakings, pension funds and accountancy organisations. Where necessary and possible, DNB and AFM also cooperate in relation to the formulation of regulations and policy.