Knowledge and competence
Employees of investment firms who provide investment services or perform investment activities should have the necessary professional competence and expertise to exercise the responsibilities entrusted to them.
MiFID II requires investment firms to ensure that all natural persons who provide investment advice or information about investment services, structured deposits, financial instruments or ancillary services to clients under their responsibility have the necessary and sufficient knowledge and competence.
The ESMA guidelines for the assessment of knowledge and competence specify the criteria for the assessment under MiFID II. Further information is available at Guidelines for the assessment of knowledge and competence (ESMA). In 2021, the AFM investigated how investment firms implement professional competence requirements. Further details about the results of the investigation can be found here.
The AFM and DSI Foundation have signed a covenant with regard to these professional competence requirements. In November 2022, the AFM announced that the covenant was to be extended by two years. This is a tacit extension of two years. This means that the AFM and DSI will continue the covenant without amendments.