If essential parts of statements are incomplete and/or incorrect, DNB may impose a cease and desist order under penalty in the event of non-compliance) and/or an administrative fine, depending on the seriousness of the breach. Statements are deemed to be incorrect if they have not been completed in accordance with the Instructions. This enforcement policy for ensuring the quality of statements has applied since the start of the 2013 fourth quarter reporting obligation.
Good quality financial statements are essential if DNB is to conduct its supervision properly. Sometimes DNB receives statements which have been filed in good time but not completed in accordance with the Instructions. If this affects important parts of the statements, DNB is unable to perform its supervisory role properly. Statements which have not been filed by the deadline and entirely in accordance with the Instructions are treated by DNB as incorrect or incomplete.
DNB will serve a cease and desist order under penalty on a pension fund if there has been a breach and rectification is required. A breach is deemed to be serious if the incorrectly completed statement conceals a prudential risk and thus hinders effective supervision. In the event of a serious breach DNB will impose an administrative fine. If the breach is less serious, DNB will impose a fine if the pension fund has filed incorrect or incomplete statements on two or more occasions within a 13-month period. The amount of the fine depends on the extent, duration and other special circumstances of the breach. Another factor is the culpability of the pension fund.
The Instructions concerning the statements can be found using DNB's e-Line Internet application, web page http://www.dnb.nl/statistiek/eline-dnb/pensioenfondsen/index.jsp. The quality is judged to be sufficient if the statements actually provide the requested information. The content of the forms, the Instructions for their completion and the other regulations relevant to the reporting process together form the reporting framework for pension funds. DNB expects the financial statements to comply with the requirements specified in the reporting framework for pension funds.