More tasks

The expansion of tasks and areas of supervision has been a prominent feature of our development during these twenty years. In many cases, that expansion was fueled by scandals in the financial sector. Like the financial crisis of 2008, those scandals resulted in further laws and regulations and more supervision. Other external factors, such as Brexit, added fuel for our further growth. And even though the growth of our workforce has been levelling off in recent years, the flow of new tasks and focus areas is certainly not drying up. For example, since 2022 we have added ‘small and medium-sized accountancy firms’ to our supervision and have received new tasks under the new pension system.

Risk-based supervision

As our tasks expanded, we developed a vision of our future that centres around a risk-based approach to supervision. This means that in addition to testing against laws and regulations, we aim to make our supervision contribute to our mission. In addition to merely investigating whether a particular activity is permitted or not; we also monitor potentially harmful effects of services or products on their users. And we take appropriate steps if required. We place issues on the agenda – as in our annual Trend Monitor – and, through our annual legislative letter, provide input for new laws and regulations.

Since our supervision focuses not just on statutory prohibitions but also covers potentially harmful behaviour, our range of instruments extends beyond formal measures. Over the past two decades we have developed a comprehensive set of instruments that balances the need for enforcement with the benefits of influence. Another consequence of this approach is that we sometimes enter territory where the lack of rules has opened up space for debate. We join that debate with a clear focus on content – even if that makes us vulnerable. We stand by our vision.

Entrepreneurs with an open mind

At a supervisor that is not afraid to push the limits in order to perform its supervisory tasks as effectively as possible, one is likely to find employees with a can-do mentality. This has been part of our DNA from day 1: our role was that of a pioneer that is prepared to think outside the box. And the continuous evolution of our areas of supervision means that we have never stopped pioneering. This explains the open mind and entrepreneurial attitude, combined with a passionate focus on content, that characterise many AFM employees. People who enjoy in-depth technical discussions at the AFM no less than their visits to a variety of companies. And who are often passionate about contributing to the protection of consumers and other clients of the financial markets.

Of course, as we grew we also changed as an organisation, from a small club where everyone knew each other to a group of ‘islands’, and then back again into a united whole. We still have four areas of supervision, but today they are all firmly interconnected, thanks in part to shared service departments such as the Expert Centre, Legal Affairs and Strategy, Policy and International Affairs. Over the years, we have also managed to retain our informal culture. And we are still an organisation with a ‘purple’ heart – for example, thanks to our internal basic supervision course for all employees, which promotes this shared DNA. Our annual cabaret also gives a great impression of what we are: an informal organisation that has a sense of humour and is open to criticism.

More international

While our supervision initially had a clear regional focus, over the years the international perspective gained in prominence, especially in two specific areas of supervision: capital markets and asset management. The financial crisis and Brexit were key drivers in this regard. In a way, however, those international influences brought us back to where we started as the AFM, as our mission-driven approach to supervision is unique, internationally. Our firm belief in that approach also encourages us to build our international position. The strong position of Amsterdam as a financial centre certainly helps us in that regard, and so does our proactive attitude in discussions at the European level. In this way we also serve the interests of Dutch parties on the financial markets.

Retaining our impact

In the twenty years of its existence, the AFM has contributed to a healthy balance between customer interests and business interests in the financial sector. Our aim is to retain that balance in the years to come. So we will continue to innovate where possible and required. And examine opportunities to use our expertise in areas such as data analysis and behavioural science to even greater effect, as well as explore new insights that will help us in our work. We also seek to further strengthen our solid basis in the international arena. And alongside our focus on enforcement, we will continue exploring opportunities to partner with players on the financial markets to build true confidence. Our current approach to a new type of market player, the ‘finfluencer’, is a case in point. At twenty years, we are certainly not too old to learn.