Evaluation of the Act on the Remuneration Policy of Financial Undertakings

Evaluation of the Act on the Remuneration Policy of Financial Undertakings

On 17 July, the Minister of Finance sent a letter to the Dutch House of Representatives and the Senate on the outcome of the evaluation of the Act on the Remuneration Policy of Financial Undertakings (see link to the letter, in Dutch). The Minister also sent a report and the final report to both Houses (both links in Dutch).

The externally conducted research generally suggests that the bonus cap of 20 percent contributes to less risky behaviour. Moreover, it is not evident that market participants abuse any legal possibilities to differ from the bonus cap. The Minister does intend to enter into discussions with the sector about the use of the possibility to deviate from the bonus cap for employees who fall outside any collective labour agreements.

The Minister will inform the House about the results of his discussions with the sector by the end of 2018.