Liabilities of regulatory supervisory bodies of troubled financial institutions (insurance, banking) in the Netherlands
✍ Scribed by Dr Bob Wessels
- Publisher
- John Wiley and Sons
- Year
- 1996
- Tongue
- English
- Weight
- 854 KB
- Volume
- 5
- Category
- Article
- ISSN
- 1180-0518
No coin nor oath required. For personal study only.
✦ Synopsis
I. Regulators of financial institutions
Quis custodiet ipsos custodes, or who regulates and controls the regulators? That is the central question of this paper. More specifically, what sanctions or claims can regulators or the responsible officials expect from injured parties (account holders, policyholders and other creditors)? I will try to answer the question on the possible liability of a regulator according to the Dutch system of civil law.'
In the Netherlands, responsibility for regulating or supervising (non-public) insurers, banks and investment institutions is divided among various bodies: 0 0 the Dutch Central Bank (De Nederlandsche Bank) regulates banks, credit institutions and (collective) investment institutions; the Insurance Supervisory Authority (Verzekeringskamer) regulates life, non-life and medical expenses insurers, pension funds and, since 1 January 1996, funeral expenses (in kind) insurers.
The Dutch Central Bank is a public company (NV) all of whose shares are held by the State. The Insurance Supervisory Authority is a foundation (stichting) since 1992, the year this entity was privatised.
This division of responsibilities is contained in a Protocol of 1994 on the Supervision of Credit Institutions and Insurers (Financial Conglomerates).
In addition, other sectors are subject to supervision, for example the stock market (supervised by the Securities Board of the Netherlands), and a debate * Partner Moret Ernst & Young Corporate and Commercial Law Advisory Group, Amsterdam; Professor Business Law Vrije Universiteit, Amsterdam; Counsellor at the Court of Appeal, The Hague. ' This article is a selected and updated version of the Insolvency and Creditors' Rights Commita papcr presented at the Third International tee (Committee J ) of the International Bar Insolvency and Creditors' Rights Seminar, Association's Section on Business Law, London, session "Regulators at Risk?", organised by 3 June 1996. * The sthjcrt has not been dealt with Fperifirally in any legal articles or textbooks in the Netherlands. ' Thc status of thr ISA has not always been clear 1992 in Dutch rivil law, Wrsscls, €3, "Civil in thr diITrrcnt inquiries and proceedings Codr Rrvision in the Netherlands: System, surrounding the Vie #Or affair. Contents and Future", (1994) 41 Nethetlnnd,i '(I Sretion 162, Book 6 of thr Ncthcrlands Civil Inlernnlivnal Law Review, 163-199. Code (NCC). Sre, on tlic radical diangrs in