For designated reporting entities, like captive financial institutions, fund managers and certain securitisation vehicles, holding and royalty companies, the practical significance is clear: repeated late submissions may now result in administrative fines, while individual late submissions may trigger penalty payment orders. Institutions subject to DNB statistical reporting obligations should review whether their existing governance, controls and escalation procedures adequately support timely filing. We will discuss the revised enforcement policy below in further detail.

Revised enforcement policy for the timely submission of statistical reporting in brief

The revised policy applies, amongst others, to the Monthly Securities Reporting (Maandeffectenrapportage), the Macroeconomic Statistics Reporting (Macro-Economische Statistiek Rapportage), and the Captive Financial Institutions and Money Lenders Benchmark Reporting (CFI Benchmark), collectively referred to as MER, MESRAP and CFI Benchmark.

Under the revised enforcement policy, when a statistical report is not submitted on time, DNB will in principle impose a penalty payment order (last onder dwangsom). The institution will then be granted 

a ten working day grace period (begunstigingstermijn) to submit the report in full. After this period, a penalty of EUR 1,250 per full working day will in principle be incurred, up to a maximum of EUR 12,500.

DNB will in principle impose an administrative fine if an institution submits a report late for the third time within a period of thirteen consecutive months. The amount of the fine is determined based on a step-by-step plan, considering, among other things, the seriousness and duration of the violation, the measures taken by the institution to prevent recurrence, and its financial capacity.

For further details, see the full policy text of the Beleidsregel Handhavingsbeleid DNB voor tijdige indiening van statistische rapportages in the Government Gazette (Staatscourant). The full text of the policy is unfortunately only available in Dutch. Please let us know in case you wish to receive an informal English translation of the revised policy.

Who is affected?

The revised policy may be relevant for:

  • special financial institutions (BFIs), including certain holding and royalty companies;
  • fund managers;
  • certain securitisation vehicles;
  • other entities designated by DNB for statistical reporting purposes.

Entities that are uncertain whether they fall within DNB's reporting framework may wish to reassess their reporting status and ongoing compliance obligations.

What must be reported?

All legally required statistical reports that a reporting party must submit to DNB, for which DNB is the competent authority, fall within the scope of statistical reporting. These currently include, pursuant to Article 7, paragraph 1, of the Foreign Financial Relations Act 1994 (Wet financiële betrekkingen buitenland 1994, Wfbb), the Monthly Securities Reporting (Maandeffectenrapportage, MER), the Macroeconomic Statistics Reporting (Macro-Economische Statistiek Rapportage, MESRAP), and the Captive Financial Institutions and Money Lenders Benchmark Reporting (CFI Benchmark).

In addition, this currently includes statistical reports that a reporting party is required to submit to DNB pursuant to Article 33, paragraph 3, of the Statistics Netherlands Act (Wet op het Centraal bureau voor de statistiek, Wet CBS) and Article 9d, paragraphs 1 and 2, of the Bank Act 1998 (Bankwet), for which DNB is also the competent authority.

What does this mean for reporting parties?

Designated Institutions must submit their statistical report digitally via the electronic reporting system developed by DNB, currently the Digital Reporting Portal (Digitaal Loket Rapportages, DLR).

The new policy does not change the existing submission channels, but it does make it more explicit when a report is formally considered to have been submitted on time.

The following requirements are laid down in the revised enforcement policy, as published in the Government Gazette (Staatscourant):

  • A reporting party must submit a statistical report digitally via an electronic reporting system developed by DNB, or by post (article 4).
  • A statistical report is considered to have been submitted on time if it is submitted no later than the prescribed submission date, in accordance with the method established by DNB for the electronic reporting system, or if it is received by DNB by post (article 5(2)).
  • A report submitted electronically is in principle deemed to have been submitted on time when it receives the status “fulfilled” in the electronic reporting system.
  • If a statistical report is not submitted on time, DNB will consider whether the imposition of a penalty payment order and/or an administrative fine is proportionate (article 5(3)).

Why this new policy?

The revised enforcement policy provides greater clarity on the method of submission, the assessment of timeliness and the steps DNB takes when reports are submitted late.

The revised policy should be viewed in the broader context of DNB's increasing focus on data quality, prudential reporting and timely regulatory submissions. Reliable and timely statistical reporting plays an important role in DNB's supervisory activities and market monitoring.

Under the Wfbb, entities such as fund managers, securitisation vehicles and certain holding and royalty companies may be required to proactively notify DNB of their activities and subsequent changes. In our experience, organisations are not always aware that they fall within the scope of DNB's statistical reporting framework. This is particularly relevant for certain holding companies, royalty companies, fund structures and securitisation vehicles. A periodic assessment of reporting obligations may therefore be advisable.

Contact

If you would like assistance in assessing how DNB’s revised enforcement policy may impact your organisation or you have any questions relating to the reporting obligations in general, please reach out to your regular contact at Loyens & Loeff or get in touch with one of our team members listed below.