Geopolitical tensions highlight the need for a resilient financial sector

SIU urgently needed due to changing dynamics between the EU and the US

‘The change in direction of the United States under Donald Trump’s presidency is causing concern in Europe. For the time being, financial markets have smoothly absorbed the shocks caused by unpredictable US policy and policy responses to it. Yet the changing status quo requires action. Our financial sector is strongly intertwined with the US. Dutch pension funds and households invest a lot in US equities, we are largely dependent on US technology and a joint supervisory approach is no longer self-evident. This is uncomfortable and makes us vulnerable’, says Laura van Geest.

'At the same time, this period brings new momentum to joint efforts in building a more autonomous and competitive Europe. The need to achieve the Savings and Investments Union has become more urgent. We can contribute to this by reducing fragmentation in the capital markets and streamlining supervision within the EU.'

Almost half of insurers studied have higher profit margins for loyal customers

The report 'A fair premium for loyal customers', which the AFM published at the same time as the Annual Report, shows that loyal customers often pay more than comparable newer customers at almost half of the non-life insurers studied. This might compromise the fair treatment of customers and product development standards. Potentially vulnerable consumers who rarely or never switch can be at a disadvantage, particularly individuals with limited digital skills.

Jos Heuvelman, Member of the Executive Board of the AFM: ‘We are discussing the higher profit margins for loyal customers with the relevant insurers concerned and are also in consultation with the Dutch Association of Insurers. We will continue to monitor developments in this area.'

Private equity in accountancy puts further pressure on balance between commercial and public interest

The proportion of statutory audits performed by non-PIE audit firms partnering with private equity is approximately 30%. This is higher than in previous years. The AFM publication 'Private equity in accountancy: public interest under pressure' discusses the effects of this. For the AFM, the risks outweigh the opportunities.

Hanzo van Beusekom, Member of the Executive Board of the AFM: 'The important public task of auditors to perform audits properly may come under pressure from commercial incentives. It is important that audit firms keep an eye on the public interest and that they put the quality of statutory audits first.'

AFM Annual Report

In addition to the two in-depth analyses, the AFM has also published its Annual Report in which it provides insight into its activities and results achieved in 2024, including the financial statements and the Annual Social Report.

More information

Annual report 2024 (pdf, 4.2 MB)
News article on report 'A fair premium for loyal policyholders'
News article on report about private equity in auditing industry