Undertake impact analysis in connection with changes to National Regime on 1 April 2019
On 1 March 2019, the Regulations amending the National regime MiFID II (link, only available in Dutch) have been published in the Government Gazette. It relates to an amendment of the National regime as included in the Exemption Regulations, in connection with MiFID II. The new National regime includes the following new substantive requirements:
• Product governance requirements;
• Order administration;
• Reporting obligations to clients;
• Cost transparency towards clients;
• Recording of telephone and electronic communications;
• Provision of information to clients must meet more detailed requirements;
• Know your customer requirements (client profile and suitability test) are set out in more detail and more robustly;
• Retention obligation from 1 to 5 years;
• Finally, the professional standards are tightened up.
As far as investor protection is concerned, the National regime is increasingly moving towards the full licence regime. The new rules enter into force on 1 April 2019. No transitional period is included. We recommend parties registered under the National regime to undertake an impact analysis. From this analysis it will follow what procedures and measures must be taken to continue to meet the relevant requirements.