AFM MiFID II investment firm authorisation in the Netherlands

A beleggingsonderneming authorised by AFM is the Dutch vehicle for MiFID II investment services. The legal framework is the Wet op het financieel toezicht (Wft) overlaying MiFID II / MiFIR and the Investment Firm Regulation (IFR / IFD). Conduct sits with AFM; prudential sits with DNB. The IFR Class 2 / Class 3 threshold test drives the prudential regime. This piece walks through the AFM dossier and how the regime sits next to the Spanish ESI, French PSI and Italian SIM.

1. Who grants and who supervises

• AFM — conduct, market-abuse, marketing communications, customer-protection; the primary authorisation authority in coordination with DNB
• DNB — prudential (capital, K-factors, large exposures), governance, ICT/DORA, AML framework

The applicant submits a single file; the two authorities coordinate internally and issue a joint approval.

2. Legal basis

• Directive 2014/65/EU (MiFID II) and Regulation (EU) 600/2014 (MiFIR)
• Regulation (EU) 2019/2033 (IFR) and Directive (EU) 2019/2034 (IFD)
• Wet op het financieel toezicht (Wft) — Dutch implementation
• Besluit Gedragstoezicht financiële ondernemingen Wft — conduct rules
• AFM and DNB policy notices — operational rules

3. MiFID II services in Dutch law

• Het ontvangen en doorgeven van orders (reception and transmission of orders)
• Het uitvoeren van orders voor rekening van cliënten (execution on behalf of clients)
• Het handelen voor eigen rekening (dealing on own account)
• Beheer van een individueel vermogen (portfolio management)
• Het geven van beleggingsadvies (investment advice)
• Het overnemen en plaatsen van financiële instrumenten (underwriting and placing)
• Het exploiteren van een multilaterale handelsfaciliteit (MTF) and OTF

4. IFR Class 1 / 2 / 3

Same EU framework as Spanish ESI, French PSI and Italian SIM. Class 2 firms file full K-factor calculation; Class 3 SNI firms file reduced set. See our Spanish ESI piece for the threshold-test detail.

5. Capital floors

IFR Article 9: €75,000 / €150,000 / €750,000 depending on services. Ongoing own funds = higher of floor, fixed-overheads requirement and K-factor sum (Class 2).

6. What goes in the dossier

English or Dutch accepted (English common). Investment-firm-specific elements:

• Programme of operations anchored to MiFID II services
• Business plan — three-year projections
• Governance — dagelijks beleidsbepalers, supervisory-board members, fit-and-proper testing
• Internal-control framework with MiFID II conflicts, best-execution, suitability
• ICT/DORA framework
• Capital plan — initial own funds, K-factor calculation
• AML programme
• Conduct framework — suitability, best execution, complaints
• MiFIR transaction-reporting framework

7. Realistic timing

Statutory MiFID II six-month review. End-to-end with pre-application and feedback rounds: nine-to-twelve months for a first-time applicant.

8. What switches on at grant

• MiFIR Article 26 transaction reporting to AFM (daily)
• IFR / IFD prudential reporting via DLR + COREP-IFR
• AFM conduct returns
• AML obligations under Wwft
• Passporting notifications

9. FAQ

10. What to do, today

• Run the IFR Class 2 / Class 3 threshold test.
• Engage AFM and DNB in coordinated pre-application meetings.
• Build the MiFIR transaction-reporting layer alongside the application.
• Plan the post-grant catalogue before submission.

Related: Investment firm Spain · AMF MiFID France · CONSOB MiFID Italy