Higher fines for violating rules financial markets

On 19 April 2016 the Dutch Minister of Finance sent the legislative proposal for the implementation of the Market Abuse Regulation and Market Abuse Directive (link, in Dutch) to the Dutch House of Representatives. The implementation of the Market Abuse Regulation is also being used as an opportunity for amending the fine system of the entire Dutch Financial Supervision Act (‘Wft’). On the basis of this legislative proposal it is clear that the fines to be imposed for violating the Wft will increase. The basic amount for serious violations (fine category 3) will increase from 2 million euros to 2,5 million with an increase of the maximum amount for these violations from 4 million euros to 5 million euros. The maximum fine in case of repeated violations will be doubled to the amount of 10 million euros. For large enterprises, a maximum fine for serious violations will be introduced that will be related to the turnover. This fine however may not exceed 10% of the net turnover. In cases where European rules would actually require even higher fines, the maximum fine may then be increased to 20 million euros or, in case the maximum fine is related to the turnover, 15% of the net turnover. The basic amounts for violations of the 1st and 2nd fine category (10.000 euros, 500.000 euros respectively) remain unchanged.