How we select the most suitable enforcement instrument

To determine what is the most suitable enforcement instrument, we first consider the objective and the desired effect. In cooperation with the Dutch Central Bank, we have drawn up an enforcement policy to provide insight into the principles and factors that determine the use of enforcement instruments.

The factors we assess include the severity and duration of the violation, the degree of culpability and compliance awareness. The latter factor involves the attitude of the party concerned. Did it shoulder its own responsibility, for example by proactively reporting a violation, remediating and informing/compensating the parties affected, or did it wait until the AFM forced it to do so? On a case by case basis, we assess what is the best instrument to achieve the desired effect. We also consider how much time and resources would be required in accordance with the principle of due care, and whether that affects our decision.