The Netherlands

Is there any legislation or proposed legislation in your jurisdiction under which financial institutions are prohibited from dealing in investments as a principal?

There is no proposed legislation in the Netherlands yet. Before the European Commission published its legislative proposals for bank structural reform Erkki Liikanen, the Dutch Minister of Finance discussed the possible implementation of the Volcker rule into Dutch law, stating that he prefers European legislations as it creates a level playing field for (Dutch) banks.

On 29 January 2014 Mr Liikanen stated that once the European Commission had issued its legislative proposals, he would review whether additional Dutch legislation was necessary. So far this review has not taken place.

To which financial institutions do the prohibitions relate?

As there is no proposed legislation in the Netherlands it is difficult to comment on which institutions would be affected by a prohibition. However, based on a Ministry of Finance publication of 29 January 2014 it seems likely that in line with the Commission’s legislative proposals if domestic legislation were implemented it would only affect the most systemically important Dutch banks.

What exceptions to the ban on proprietary trading are contemplated by the legislation?

As there is no proposed legislation in the Netherlands it is not clear what exemptions will be available.

Can any other entity within the relevant financial institution’s group of companies carry on the prohibited activity?

As there is no proposed legislation in the Netherlands it is not clear whether another entity in the group will be allowed to carry on the prohibited activity.

When will the proposed legislation come into effect?

Not applicable as there is no proposed legislation in the Netherlands.