Special News Update Financial Regulatory

4 June 2020

In this special News Update, the Houthoff Financial Regulatory team takes a look at an important new draft bill and its consequences.

On 1 June 2020, the Dutch Ministry of Finance launched a public consultation on a draft bill which would ban life insurers and non-life insurers from outside the European Economic Area ("EEA") from providing services in the Netherlands. This would include current insurers from outside the EEA and from the UK post-Brexit.

The proposed change in the Financial Supervision Act (Wet op het financieel toezicht, "Wft") is prompted by the opinion of the European Commission that Article 162 of the Solvency II Directive implies a ban on life and non-life insurers from outside the EEA providing services in the Netherlands. This bill would bring Dutch law in line with this. Responses to the public consultation can be submitted until 30 June 2020.

If this proposed change goes ahead, life and non-life insurers from outside the EEA will have to:

• incorporate an insurance company within the EU;
• open a branch in the Netherlands; or
• transfer their insurance portfolio to an insurer with a registered office in the EU,

and discontinue their current services in the Netherlands.
Insurers who only provide reinsurance services in the Netherlands will have to use a new enhanced notification procedure.

If you have any questions about this bill and its consequences or if we can assist you in this area or with responding to the public consultation, please do not hesitate to contact us.

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