Digitization, sustainability and internationalization are the main themes in the new annual supervisory agenda of the Financial Markets Authority. The regulator emphasizes that these trends are developing at lightning speed and have an increasing impact on the financial sector.
For example, digitalization has now become indispensable in the operations and business models of financial institutions. This brings with it new risks, partly due to the dominance of a small group of large tech companies, also known as "big tech. According to the AFM potentially major consequences for the industry.
The use of IT systems and data is exploding, increasing vulnerability. The loss of one key player can seriously disrupt financial services. In addition, large-scale cyber risks can not only cause major financial damage, but also threaten financial stability. This affects both consumers and financial institutions.
AFM Board Chair Laura van Geest emphasizes the importance of a modern approach. "The financial sector is becoming more and more data- and IT-driven. Effective supervision is in line with this. Data-driven supervision is therefore essential for the AFM to fulfill its role as a risk-driven supervisor also in the future."
In addition to digitalization, geopolitical developments play a major role. Tensions between trading blocs, such as the EU, US and China, have led to increasing fragmentation. This is reinforced by reciprocal import tariffs and financial-economic sanctions.
Many countries are pursuing strategic autonomy in areas such as defense, technology and energy. These developments bring additional uncertainty, especially in the area of regulation.
The divergent development in laws and regulations between the US and the EU, for example on sustainability or crypto assets, could lead to arbitrage and undermine the integrity of financial markets, according to the AFM. This makes international supervision and cooperation more important than ever.
Within the Netherlands, pension reform remains an important factor, the authority says. The transition to a new pension system requires major adjustments from both the industry and regulators. The AFM therefore continues to focus on transparency and consumer protection as the industry goes through this complex transition.
