Regeling van de Minister van Financiën van 17 september 2010, houdende bepalingen ter uitvoering van de Wet assurantiebemiddelingsbedrijf BES, de Wet toezicht bank- en kredietwezen 1994 BES, de Wet toezicht beleggingsinstellingen en administrateurs BES, de Wet zeggenschap in ter beurze genoteerde vennootschappen BES en de Wet toezicht verzekeringsbedrijf BES (Regeling financiële markten BES 2010)

• 1.

  With Supervisory Regulation I the Bank seeks to formally limit the amount of lending to executive officers, supervisory directors, principal shareholders being natural persons (including the related interests of those persons) and employees of the institution.

• 2.

  The intended limitation will be applied to mentioned persons individually in relation to the equity of the credit institution. However, for employees the limitation is on an aggregate basis for all employees.

• 1.

  This regulation is issued pursuant to article 21, paragraph 2, letter c of the National Ordinance on the Supervision of Banking and Credit Institutions 1994 and draws therefore on the authority of subject ordinance.

• 2.

  This regulation governs any extension of credit by a credit institution to the persons (mentioned above) employed in the institution itself, the holding company (if any) of which the credit institution is a subsidiary and other subsidiaries of the holding company.

• 3.

  The regulation also applies to any extensions of credit by the credit institution to a company controlled by such persons or a committee or party that benefits from or is controlled by such persons.

For the purpose of Supervisory Regulation I, the following definitions apply:

• 1.

  ‘Equity’ is defined as Tier I capital as defined in the Chart of Accounts. For purposes of this regulation equity is considered at the end of the quarter preceding the date of the transaction.

• 2.

  ‘Covered parties’ are the parties being subject to the regulation. These are executive officers, supervisory directors, principal shareholders and their respective related interests.

• 3.

  ‘Interest party’ is a covered party that has made a request for extension of credit by the credit institution.

• 4.

  ‘Control’ of a company or credit institution means that a person directly or indirectly, or acting through or in concert with others:

  • a.

    owns or has the power to vote 20% or more of any class of voting securities of the company or credit institution;

  • b.

    controls in any manner the election of the majority of the directors of the company or credit institutions;

  • c.

    has the power to exercise a controlling influence over the management or policies of the company or bank. Based hereon, an executive officer or director is presumed to have control.

  A person may rebut a presumption of control established as per a, b, or c above by submitting to the Bank written material that, in the Bank's judgment, demonstrate effectively the absence of control.

  ‘Director’ of a credit institution includes any supervisory director whether or not receiving compensation, any supervisory director of a bank holding company of which the institution is a subsidiary, and any supervisory director of any other subsidiary of that holding company.

• 5.

  ‘Executive officer’ of a company or credit institution includes all individuals who participate or have the authority to participate (other than in the capacity of a director) in major policy-making functions of the company or credit institution whether or not the officer has an official title (such as Managing Director), the title designates the officers as an assistant or the officer is serving without compensation.

  An officer who is presumed to be an executive officer in the meaning of this regulation may be effectively excluded from participation in major policy-making functions of the company or institution by unanimous resolution of the Board of Directors or by the articles association of the company or credit institution and this person actually does not participate in policy making. Consequently, the excluded executive officer will not be regarded as an officer (exercising control) in the sense of this regulation.

• 6.

  ‘Immediate family’ means the individual's spouse, minor children and any of the individual's children (including adults) residing in the individual's home, whether adopted or not.

• 7.

  ‘Principal shareholder’ means an individual or a company that directly or indirectly, or acting through or in concert with one or more persons, owns, controls or has the power to vote 10% or more of any class of voting shares of a company or credit institution. Shares owned or controlled by a member of an individual's immediate family are considered to be held by the individual.

• 8.

  ‘Persons’ means both natural persons and corporate persons.

• 9.

  ‘Related interests’ means a company or any other organization that is controlled by a person. In case there is no control by a person, the criterium for a related interest is whether the person benefits from the organization acting as an interested party.

• 10.

  ‘Subsidiary’ is a company or credit institution in which a person holds a majority of the shares.

• 11.

  ‘Extension of credit’ is a making or renewal of any loan, a granting of a line of credit in any manner whatsoever. Extensions of credit also include:

  • a.

    a purchase under an irrevocable repurchase agreement of securities, other assets or obligations;

  • b.

    an advance by means of an overdraft, cash or otherwise;

  • c.

    issuance of a standby letter of credit or other similar arrangements regardless of names or description;

  • d.

    an acquisition of any note, draft, bill of exchange or other evidence of indebtness;

  • e.

    an increase in the existing indebtness;

  • f.

    an advance of unearned salary or other compensation for a period in excess of 30 days; and

  • g.

    any other transaction as a result of which a person becomes obligated to pay money or its equivalent to a credit institution.

• 12.

  ‘Employees’ are all other persons employed by a credit institution not being an executive officer or director.

  If an employee is also a principal shareholder, the employee is not considered to be an employee but a principal shareholder.

• 13.

  ‘Credit institution’ is defined in article 1, paragraph 1, sub c and d of the National Ordinance on Supervision of Banking and Credit Institutions of 1994.

• 1.

  Supervisory Regulation I will be applicable to all credit institutions falling under the supervision of the Bank, except for those classes of institutions having an exemption under the regulation as mentioned in paragraph I.4.2.

• 2.

  This regulation shall not apply to any branches of foreign banks which are consolidated in their home country and for which branch the Bank has received a guarantee for all liabilities.

The requirements under the regulation for above mentioned parties are as follows:

• 1.

  Extensions of credit by a credit institution to executive officers, directors, principal shareholders being a natural person and their related interests are subject to the following limits:

  • a.

    Executive officer: 50% the officer's net annual salary;

  • b.

    Directors: reasonable current account overdraft facility in line with established internal policy;

  • c.

    Principal shareholders: 2.5% of equity.

• 2.

  An additional 2.5% of equity may be extended to the parties mentioned under 1.5.1. only if it is fully secured by adequate collateral.

• 3.

  Additionally, a credit institution is authorized to extend credit to any executive officer of the institution:

  • a.

    to a reasonable amount to finance the education of the officer's children where these children, due to the executive officer's position, would not ordinarily qualify for a government scholarship and

  • b.

    to a reasonable amount to finance the purchase, construction or improvement of residence, of the extension of credit is secured by a first lien on the residence and the residence has been adequately appraised and is owned by the executive officer.

    Hence, for any other purpose not specified in a and b above, the aggregate amount of the credits to that officer must not exceed the lending limits specified above.

• 4.

  Extension of credit to executive officers are made by the credit institution subject to the following conditions:

  • a.

    the officer will report all requests for credit from other credit institutions;

  • b.

    prior approval is received from the Board of Directors;

  • c.

    unsecured loans become immediately due and payable upon the officer leaving the credit institution.

• 5.

  An extension of credit does not include an advance against accrued salary or other accrued compensation (earned but not disbursed) or an advance for the payment of authorized travel or other expenses on behalf of the institution.

• 1.

  Extension of credit to employees of a credit institution should be performed by the institution according to a proper lending policy for employees, considering the limits of paragraph I.6.2.

• 2.

  The requirement for loans to employees is as follows:

  Total loans to employees of an institution may not exceed 10% of equity, of which up to 5% of equity may be left unsecured.

• 1.

  No credit institution may extend credit to any of its directors, principal shareholders or their related interests and the related interest of executive officers unless the extension of credit is made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions by the credit institution with other persons that are not covered parties and who are not employed with the institution. The extension of credit should furthermore not involve more than the normal risk of repayment or present other unfavorable features for the institution.

• 2.

  With regard to the lending terms, credit institutions may adopt in the context of the specified lending limits, preferential interest rates only for their employees and executive officers. These preferential rates for employees and executive officers must be approved by the Board of Directors.

• 1.

  No credit institution may extend credit to any of its executive officers, directors, principal shareholders or their related interests in an amount that, when aggregated with the amount of all other extensions of credit to that person and all its related interest, exceeds 50% of the limits specified under I.5.1 unless a line of credit in excess hereof has been approved in advance by a majority of the board of directors and the interested party has abstained from participating directly or indirectly in the voting.

• 2.

  However, in no event may a credit institution extend credit to any one of the covered parties, in an amount that, when aggregated with all other extensions of credit to the interested party and its related interests, exceeds NAf.100.000 except by complying with the requirements of I.8.1 above (prior Board of Directors' approval and no participation in voting by the interested party).

• 3.

  Participation in the discussion by an interested party or any attempt to influence the voting by the board of directors regarding an extension of credit constitutes indirect participation in the voting on an extension of credit. Consequently, the credit institution is in non-compliance and the credit extended will have to be repaid immediately.

• 1.

  Each credit institution shall maintain the necessary records for compliance with the requirements of this regulation. These records identify all executive officers, directors, principal shareholders and their related interests and specify the amount and terms of each extension of credit by the credit institution to these covered parties.

• 2.

  Each credit institution shall request at least annually that each executive officer, director or principal shareholder identify by means of a written statement their related interests with a loan from the credit institution. These records should be readily available for the Bank's inspection at any time.

• 1.

  Each executive officer who has a loan with a credit institution and who becomes a debtor of any other credit institution in an aggregate amount in excess of NAf.50.000 shall, within 10 days of the date the indebtness reaches such level, make a written report to the board of directors of the officer's credit institution. The report shall state the lender's name, the date and amount of each extension of credit, any security for it, and the purposes for which the proceeds have been or are to be used.

• 2.

  Subject reports should be filed as an integral part of the documentation requested under paragraph 1.9.

• 1.

  A lending relationship of an executive officer, director, principal shareholder that becomes unpermitted as a result of the implementation of this regulation may continue for a period desired by the institution after consultation with the Bank, but may not continue for a period longer than 12 months after the implementation date of the regulation.

• 2.

  Existing loans maturing in a period longer than 12 months shall be respected, provided a written request is done by the institution and which loan is found to be reasonable and sound by the Bank, based on the underlying documentation.

• 1.

  Because of the risk of contagion by affiliates it is necessary to place restrictions on the type and volume of transactions with affiliates and the resulting receivables from these affiliates.

• 2.

  Therefore, the requirements of this regulation are aimed at restrictions on transactions with (unconsolidated) affiliates and a limit on net balances due from (unconsolidated) affiliates.

• 1.

  This regulation is issued pursuant to article 21, paragraph 2, sub c of the National Ordinance on the Supervision of Banking and Credit Institutions 1994 and governs certain transaction with an affiliate. The regulation draws on the authority of subject ordinance.

• 2.

  The aim of this regulation is to provide a sound basis for transactions with affiliates. All unconsolidated affiliated companies fall within the scope of the requirements.

For the purpose of Supervisory Regulation II, the following definitions apply:

• 1.

  ‘Equity’ is defined as Tier I capital as defined in the Chart of Accounts. For purposes of this regulation equity is considered at the quarter preceding the date of the transaction.

• 2.

  An ‘Affiliate’ of a supervised credit institution is defined for the purpose of the regulation to be:

  • a.

    Any company for which commonality of ownership exists with the credit institution: any company that controls the credit institution (parent company or other) and any other company that is controlled by the company that controls the credit institution (sister companies) and any company that controls the company that controls the credit institution (ultimate parent company or companies);

  • b.

    Subsidiaries of the credit institution;

  • c.

    Any company for which a commonality of directors exists with the credit institution: any company in which the majority of its (supervisory or managing) directors constitute a majority of the directors of the credit institution or any company that is controlled by the credit institution;

  • d.

    Any company that de Bank determines to have a relationship with the credit institution or its subsidiaries and affiliates, such that transactions with that company may be affected by the relationship of the company with the credit institution, its subsidiaries or affiliates.

  The definition of affiliate does not include:

  Companies engaged solely in the following activities: holding the premises of the credit institution, conducting a safe deposit business, holding obligations of governments or holding real estate for execution on the short term. However, no transaction should be concluded with these affiliates other than those which are strictly necessary for the facilitation of their respective businesses to the benefit of the credit institution.

• 3.

  ‘Covered transactions’ mean with respect to an affiliate of a credit institution all transactions mentioned below which are subject to the enforcement of this regulation and the resulting restrictions. The following transactions are ‘covered' and hence subject to restrictions:

  • a.

    an extension of credit to or the placement of a deposit with an affiliate;

  • b.

    the issuance of a guarantee, acceptance or letter of credit (including a standby letter of credit) on behalf of an affiliate;

  • c.

    a purchase of securities issued by an affiliate;

  • d.

    a purchase of assets, including assets subject to a repurchase agreement, from an affiliate;

  • e.

    the acceptance of securities issued by an affiliate as collateral for an extension of credit to any person or company.

• 4.

  ‘Company’ is defined as any form of business organization irrespective of its orientation to profit and trusts (business or otherwise). However, the term does not include supervised credit institutions, supervised insurance companies and corporations of which the majority of the shares are owned by the government.

• 5.

  ‘Control’ of a company or credit institution means that a person directly or indirectly, or acting through or in concert with others:

  • a.

    owns or has the power to vote 20% or more of any class of voting securities of the company or credit institution;

  • b.

    controls in any manner the election of the majority of the directors of the company or bank;

  • c.

    has the power to exercise a controlling influence over the management or policies of the company or bank.

• 6.

  ‘Persons’ means both natural persons and corporate persons.

• 7.

  ‘Subsidiary’ is a company or institution in which a person holds a majority of the shares.

• 8.

  ‘Securities’ means stock, bonds, debentures, notes or other similar obligations.

• 9.

  ‘Low quality assets’ means an asset that falls into one or more of the following categories:

  • a.

    an asset qualified as ‘substandard’, ‘doubtful’ or ‘loss’ in the most recent report of examination of an affiliate by its supervisor (in case of a supervised institution) or assessed to fall into one of these categories by the Bank;

  • b.

    an asset in non-accrual status;

  • c.

    an asset on which principal or interest payments are more than 60 days past due;

  • d.

    an asset whose terms have been renegotiated or compromised due to the deteriorating financial condition of the obligator.

• 10.

  ‘Credit institution’ as defined in art. 1 paragraph 1 sub c and d of the National Ordinance in the Supervision of Banking and Credit Institutions of 1994.

• 1.

  Supervisory Regulation II will be applicable to all credit institutions falling under the supervision of the Bank, except for those classes of institutions having an exemption under the regulation as mentioned in paragraph II.4.2.

• 2.

  This regulation shall not apply to any branches of foreign banks which are consolidated in their home country and for which branch the Bank has received a guarantee for all liabilities of the branch.

The requirements under the regulation are as follows:

• 1.

  A credit institution and its consolidated subsidiaries may engage in a covered transaction with an affiliate only if the balances due from unconsolidated affiliates are limited to 10% of equity for individual affiliates and 20% of equity in the aggregate for all affiliates.

• 2.

  For the purpose of this regulation, any transaction by a credit institution with any person shall be deemed to be a transaction with an affiliate to the extent that the proceeds of the transaction are used for the benefit of, or effectively transferred to, that affiliate.

• 3.

  A credit institution and its consolidated subsidiaries may not purchase a low quality asset from an affiliate unless the credit institution or such subsidiary, pursuant to an independent credit evaluation, has committed itself to purchase such an asset prior to the time such asset was acquired by the affiliate.

The requirement for restrictions on (covered) transactions with affiliates shall not be applicable to:

• a.

  any transaction (not involving low quality assets) of the credit institution with:

  • ○

    a local bank which controls 75% or more of the voting shares of the credit institution;

  • ○

    any bank in which the credit institution controls 75% or more of the voting shares;

  • ○

    a local bank in which 75% or more of the voting shares are controlled by the (holding) company that controls 75% or more of the voting shares of a credit institution;

• b.

  making deposits in an affiliated bank or affiliated foreign bank in the ordinary course of correspondent business, subject to a restriction of 20% of equity per affiliated correspondent bank and 40% of equity in the aggregate for all affiliated correspondent banks;

• c.

  extension of credit or the issuing of a guarantee or letter of credit on behalf of an affiliate that is fully secured by acceptable obligations of a government c.q. fully guarantees by a government, or by a segregated earmarked deposit account with the credit institutions;

• d.

  purchasing assets having a readily identifiable and publicly available market quotation and purchased at market value or purchasing loans of sound quality from affiliate banks on an non-recourse basis;

• e.

  purchasing from an affiliate a loan or extension of credit that was originated by the credit institution and sold to the affiliate subject to a repurchase agreement or with recourse.

• 1.

  A credit institution may engage in a transaction (covered or exempted) with an affiliate only:

  • a.

    on the terms and under the circumstances, including credit standards, that are substantially the same, or at least as favorable to the credit institution or its subsidiaries, as those prevailing at the same time for comparable transactions with or involving non-affiliated companies and

  • b.

    in the absence of comparable transactions, on terms and under circumstances, including credit standards, that in good faith would be offered, or would apply to, non affiliated companies.

• 2.

  In addition, any transaction (covered or exempted) between a credit institution and an affiliate shall be on terms and conditions that are consistent with safe and sound banking practices.

• 1.

  An affiliate relationship that becomes unpermitted as a result of the implementation of this regulation may continue for a period desired by the institution after consultation with the Bank, but may not continue for a period longer than 12 months after the implementation date of the regulation.

• 2.

  Transactions maturing in a period longer than 12 months shall be respected, provided a written request is done by the institution and which transactions are found to be reasonable and sound by the Bank based on the underlying documentation.

• 1.

  At the very center of a credit institution lies the extension of credit to borrowers. This regulation deals with the restriction of the amounts owed by one debtor or a group of connected debtors to a credit institution in order to avoid overexposure to one single entity.

• 2.

  Monitoring and controlling the exposures of a credit institution is an integral part of prudential supervision because excessive concentration of exposures to a single client or group of connected clients might result in an unacceptable degree of concentration risk and such a situation may be deemed to be prejudicial to the solvency of a credit institution.

• 1.

  This regulation is issued pursuant to article 21, paragraph 2, letter c of the National Ordinance on the Supervision of Banking and Credit Institutions 1994 and governs any transaction with a single borrower.

• 2.

  The aim of this regulation is to provide a sound basis for transactions with large borrowers.

For the purposes of Supervisory Regulation III, the following definitions apply:

• 1.

  ‘Equity’ is defined as Tier I capital as defined in the Chart of Accounts. For purposes of this regulation equity is considered at the end of the quarter preceding the date of the transaction.

• 2.

  ‘Credit institution’ is defined in accordance with article 1, paragraph 1, sub c and d of the National Ordinance on the Supervision of Banking and Credit Institutions of 1994;

• 3.

  ‘Exposure’ is defined as any facility granted, whether drawn or undrawn, by a credit institution to a client or group of connected clients, on or off balance sheet, and includes those commitments and contingent items deemed to be relevant deemed to be relevant by the Bank when assessing the identifiable risks of the credit institutions. Exposure elements include but are not limited to:

  • a.

    loans and advances, including overdrafts;

  • b.

    leases;

  • c.

    bills and promissory notes received;

  • d.

    guarantees and similar contingent liabilities as acceptances, 	documentary credits issued and confirmed, irrevocable standby letters 	of credit; and

  • e.

    commitments such as repurchase agreements, irrevocable revolving lines of credit, underwriting (including note issuance facilities and revolving underwriting facilities), irrevocable undrawn overdraft facilities, lending commitments.

• 4.

  ‘Group of connected clients’ means two or more persons, whether natural or legal, holding exposures from the same credit institution and any of its subsidiaries, whether on a joint or separate basis, but who are mutually associated through the control of one of them by the other. Moreover, the interconnection between the persons also implies that their cumulated exposure actually represents a single risk to the credit institution, with the likelihood that if one of them experiences financial problems the other or all of them are likely to encounter repayment difficulties.

• 5.

  ‘Control’ as defined in Supervisory Regulation I and II.

• 1.

  Supervisory Regulation III will be applicable to all credit institutions falling under the supervision of the Bank, except for those classes of institutions having an exemption under the regulation as mentioned in paragraph III.4.2.

• 2.

  This regulation shall not apply to any branches of foreign banks which are consolidated in their home country and for which branch the Bank has received a guarantee for all liabilities.

• 1.

  In the Supporting Schedules of the Chart of Accounts a report of every large exposure shall be made by the credit institution to the Bank on a periodic basis as required by the Bank.

• 2.

  An exposure of a credit institution to a client or group of connected clients is considered to be a large exposure when its value has reached or exceeded 15% of equity.

• 3.

  Regardless of whether large exposures exist in a credit institution the Bank requires the credit institution to report on the appropriate Chart of Accounts schedules a minimum of 25 exposures with the highest percentage value of equity.

• 1.

  In the determination of the interconnection between borrowers a credit institution should take at least the following criteria into consideration:

  • a.

    common ownership of clients;

  • b.

    common directors of clients;

  • c.

    cross guarantees provided by one client for the other;

  • d.

    direct commercial interdependency which cannot be substituted in the short term.

    If on the basis of these criteria interconnections between clients is observed by a credit institution, the aggregate credits of these clients should be classified as a single risk.

• 2.

  With regard to large exposures to one borrower or group of connected borrowers the following limits apply:

  • a.

    Exposures to any one borrower or group of connected borrowers should be limited to 25% of equity;

  • b.

    Exposures to all large borrowers may in the aggregate not exceed 600%;of equity.

• 1.

  The aggregate exposure limit of 600% referred to in paragraph III.6.2. sub b may be exceeded only in exceptional cases with the distinct prior approval of the Bank.

• 2.

  In such cases the Bank shall require the credit institution either to increase the volume of equity or to take other remedial measures such as a substantial coverage with solid additional collateral, the value of which is not likely to deteriorate during the term of the commitment.

• 3.

  Under no circumstances will an individual exposure to one client or group of connected clients be allowed to exceed 35% of equity.

• 1.

  The Bank may fully or partially exempt from the application of the exposure limits in paragraph III.6. the following clients or group of connected clients:

  • a.

    the government of the Netherlands Antilles and the Islands of the Netherlands Antilles and

  • b.

    public authorities of certain countries to be designated by the Bank on a case by case basis.

• 2.

  Furthermore, the Bank will in principle fully or partially exempt from the application of the exposure limits in paragraph III.6:

  • a.

    exposures secured by an explicit and irrevocable guarantee or pledge of the public authorities referred to under a) and b) above;

  • b.

    exposures fully secured by cash deposits or securities listed on a Stock Exchange acknowledged by the Government of the Netherlands Antilles, provided that the exposure is less than the average market value in the last 12 months;

  • c.

    interbank exposures having a maturity of six months or less.

The exposures of a credit institution which has one or more subsidiary credit institutions and foreign branches shall be monitored and controlled on a consolidated basis by subject credit institution.

• 1.

  A large borrower relationship that becomes unpermitted as a result of the implementation of this regulation may continue for a period desired by the institution after consultation with the Bank, but may not continue for a period longer than 12 months after the implementation date of the regulation.

• 2.

  Existing loans maturing in a period longer than 12 months shall be respected, provided a written request is made by the institutions and which loans are found to be sound by the Bank based on the underlying documentation.

All banks conducting international banking business are required to file a country risk exposure and provision schedule together with its Chart of Accounts as per December 31 of each year. The Chart of Accounts as per mentioned reporting date should reflect the required country risk provisions in line with the list containing minimum provision percentages circulated by the Bank once a year.

• 1.

  The reporting of country risk exposures includes all foreign exposures of foreign branches and subsidiaries of a bank in consolidated form. Country risk exposures of consolidated subsidiaries in which the ownership is less than 100% shall be reported in their aggregate amount or on a pro rata parte basis.

• 2.

  A bank shall also report its Net Financial Interest in foreign branches and participations as a country risk exposure. The Net Financial Interest will include the assigned capital of a foreign branch and or the equity value of a foreign participation including the net balance receivable from a foreign branch or participation as per the reporting date.

• 3.

  The calculation and presentation of the country risk exposure reflects the establishment of a gross exposure, followed by allowed deductions and compensations. This will lead to the calculation of a net exposure on which the applicable provision percentage, if any, will be applied.

The country risk reporting system differentiates between exposures related to banks, Governments and the private sector (excl. banks). Banks include multilateral development banks and Government includes international and supra-national institutions.

• 1.

  In general, deductions can only be considered if the credit institution has to the satisfaction of the Bank provided evidence that the payment history of the debtor-country is adequate or that otherwise a country risk does not exist.

  In these cases, the relevant foreign assets will be deducted from the total country risk exposure amount which is the basis for provisioning.

• 2.

  There are three categories of deductions:

  • a.

    Guarantees and other securities.

    These regard:

    • 1.
      • i)

        assets covered by credit insurance;

    • 2.
      • ii)

        back to back positions; and

    • 3.
      • iii)

        net positions covered by guarantees and other securities, if both political and transfer risks are adequately covered (e.g. when guarantor is established outside the debtor-country or the security is located outside the debtor-country).

  • b.

    Trade financing.

    As long as the payment history of a debtor-country is normal, a bank's net position due from trade financing with a maturity of one year or less shall be excluded from the country risk provision calculations by means of an allowed deduction. The Bank may allow deductions for trade-financing with a period of 3 years or less to take place provided stable conditions existed in the debtor-country for the past ten years.

  • c.

    Other deductions and compensation.

    Participations in financing provided to debtor-nations primarily by multi-lateral development banks may also be excluded from the country risk provision calculation. Also, already existing provisions from prior years shall be excluded from subject calculation.

• 1.

  The Bank may, based on the country risk review system, deem it necessary to require specific country risk provisions for outstandings of banks in certain debtor-countries. These provisions will be put on the list to be circulated.

• 2.

  No later than December 15 of each year, the Bank will circulate among the banks the list containing the required minimum country risk provision percentages, which should be used for the calculation of the country risk provision in the Chart of Accounts. The country risk provision is a specific provision and should be reported as such in the Chart of Accounts. The loan should then be reported net of the amount of the country risk provision on the balance sheet.

• 3.

  The required provisions are by their nature minimum provisions and credit institutions are therefore advised that the country risk policy of the Bank does not eliminate the own responsibility of the management of an institution to evaluate its risks on an ongoing basis and to take the necessary measures, including additional provisions, to accommodate the risks.

• 4.

  Upon their request, the Bank will discuss the current provision percentages with the representative organizations of banks, before it sends the list to the individual banks.

• 5.

  For banks conducting their activities mainly in one specific ‘Country Risk’ jurisdiction, a special rule will be applicable with regard to the minimum provisions. To that effect a special circular will be issued by the Bank based on this Supervisory Regulation.

• 1.

  The Country Risk Exposure and Provision Schedule (‘CREPS’) shall be submitted to the Bank by banks with international activities once a year along with the December 31, Chart of Accounts.

• 2.

  The last page of the CREPS provides a summary of the gross country risk exposures of identified countries, the allowed deductions, the net country risk exposure and the required country risk provision per country and in the aggregate.

• 3.

  The net country risk provision as per the reporting date should be reconciled with the general provisions of the Chart of Accounts and the difference between the provision as per reporting date with the prior period provision should reflect a charge (debit) or a release (credit) in the Profit & Loss account.

• 1.

  Supervisory Regulation V is aimed at the establishment of effective provisioning guidelines for credit institutions with respect to their lending. Therefore, the regulation deals with provisioning policies at two levels, general as well as specific provisions.

• 2.

  The General Provision for Loan Losses (‘GPLL’) covers the potential risks in the entire loan portfolio, whereas Specific Provisions for Loan Losses (‘SPLL’) are geared towards the setting up of appropriate provisions for identified losses in specific loans.

• 1.

  Supervisory Regulation V is issued in pursuance of article 21, paragraph 2, sub c of the National Ordinance on the Supervision of Banking and Credit Institutions 1994.

• 2.

  This regulation governs the provisioning policies of all credit institutions under the supervision of the Bank and is applicable to all these institutions.

For the purposes of Supervisory Regulation V, the following definitions apply:

• 1.

  ‘Equity’ is defined as capital, which is calculated as the total amount of capital (class 3) plus minority interest and less intangible assets as defined in the Chart of Accounts.

• 2.

  ‘Subsidiary’ is a company or credit institution in which the institution holds a majority of the shares.

• 3.

  ‘Credit institution’ is an institution as defined in article 1, paragraph 1, sub c and d of the National Ordinance on the Supervision of Banking and Credit Institutions of 1994.

• 4.

  ‘Net loan’ is calculated as the gross loan amount minus compensations (as per Appendix A of the General Guidelines of the Chart of Accounts) and SPLL.

• 5.

  ‘Consumer installment loan’ is defined as a loan (closed or open-end credit) extended to individuals for household, family or other personal expenditure, rather than for business purpose.

• 6.

  ‘Restructured troubled loan’ is defined as a loan (either a consumer installment or other type of loan) of which the credit institution has granted the borrower, for economic or legal reasons relating to the borrower’s financial difficulties, a concession (favorable terms) that the credit institution would not otherwise consider. The concession should be in writing and may include the modification of terms, such as a reduction of the originally agreed interest and or extending the loan’s maturity, a reduction in the remaining principal amount, or the transfer of real estate from the borrower to the credit institution, receivables from third parties, other assets, or an equity interest in the borrower in full or partial satisfaction of the loan.

• 1.

  Credit institutions should set up the GPLL to provide for potential, but as yet unidentified or unexpected losses in their loan portfolio. Branches of foreign banks which are consolidated in their home country and for which branch the Bank has received a head-office guarantee for all liabilities are exempted from this requirement.

• 2.

  Every institution under the supervision of the Bank should maintain appropriate policies to set up the GPLL and to determine the adequacy thereof.

• 3.

  The adequacy of the GPLL should be reviewed by the institution periodically, at least once a year¹Credit institutions that have received a rating of 4 or 5 for asset quality in the last examination report of the Bank must review the adequacy of their GPLL at least twice a year. The external auditors should verify and inform the Bank whether the review(s) took place., in relation with the level of the credit risk and the equity position of the institution, because prudent banking policy requires a GPLL level that sufficiently accommodates the inherent credit risks affecting a loan portfolio as a whole.

• 4.

  In light of the above, the Bank maintains the policy that under normal economic circumstances and market conditions, with no substantial concentrations of risks and an overall soundness of the loan portfolio, the total minimum required GPLL should be calculated as the sum of the following:

  • (i)

    1.0% of the total net loans to banks;

  • (ii)

    1.0% of the total net loans to debtors rated A- or better²Ratings must be provided by recognized external credit assessment agencies, such as Standard & Poor’s or Moodies.;

  • (iii)

    2.0% of the total net loans to other debtors.

• 5.

  However, under certain circumstances for a particular institution, a higher GPLL percentage may be necessary. Circumstances that may warrant a higher provision percentage are but not limited to, the following:

  • a.

    depressed conditions in one or more sectors of the economy in which the institution operates;

  • b.

    the level of unsecured loans in relation to the total loan portfolio and equity;

  • c.

    the number and size of large loans; and

  • d.

    the overall condition of the loan portfolio which is measured by the extent of loans classified as substandard, doubtful or loss.

• 6.

  The management of each credit institution is responsible for assessing the adequacy of its GPLL, taking into consideration the level of risk in the portfolio and the circumstances under which the institution operates, as specified in paragraph V.4.-5. If required, the Bank will request the credit institution to maintain a higher GPLL percentage than the minimum specified in paragraph V.4.-4.

• 1.

  Each credit institution should review its total loan portfolio periodically, at least once a year³Credit institutions that have received a rating of 4 or 5 for asset quality in the last examination report of the Bank must review their total loan portfolio and aline their SPLL more than twice a year. The external auditors should verify and inform the Bank whether the reviews took place., and have in place procedures and systems for identifying, measuring and monitoring (potential) problem credits on an ongoing basis⁴On an ongoing basis, credit institutions should identify and select (potential) problem loans that require individual further monitoring. The selection should be risk orientated, taking into consideration e.g. the condition of the debtor and or the sector in which it operates. These loans must be reviewed more than once a year.in order to maintain their SPLL in line with the policies mentioned below.

• 2.

  Credit institutions should at least adhere to the Bank's SPLL classification and provisioning policies described in the paragraphs V.5.A and V.5.B.

• 3.

  With respect to the SPLL and the carrying loan value, credit institutions should identify and recognize loans or a collectively assessed group of related loans, of which it is probable that the institution will not be able to collect, or of which there is no longer reasonable assurance that the institution will collect the full amount due, according to the contractual terms of the loan agreement.

• 4.

  As part of its on-site examinations, the Bank performs a credit review at the credit institutions which results in the classification and provisioning of the loan portfolio of the institution.

• 5.

  In its credit review, the Bank distinguishes two types of collateral. Firstly, ‘hard collateral’, such as 1^st mortgage, cash and marketable securities held by the credit institution, guarantees issued by the Governments of the Kingdom of the Netherlands, and bank guarantees by banks’ incorporated in the Kingdom of the Netherlands. Secondly, ‘soft collateral’, such as personal or corporate guarantees, and 2^nd and 3^rd mortgage if the 1^st mortgage is held by another unrelated institution or company. In general, hard collateral will be taken into account by the Bank to its full extent while soft collateral will be reviewed on a case by case basis.

• 1.

  Credit reviews

  The Bank’s credit reviews of subject loans results in the following classifications: Satisfactory, Special Mention, Substandard, Doubtful and Loss.

• 2.

  Loan classifications and provisioning

  The description of the five loan classifications and the extent of specific provisions required in each case is as follows:

  • a.

    Satisfactory

    Loans classified Satisfactory are loans that reflect no weaknesses. These loans are performing according to the loan agreement and are well protected by the current sound worth and paying capacity of the borrower or by the collateral pledged. The Bank does not require a specific provision for these loans.

  • b.

    Special mention

    Loans classified Special mention are loans that currently do not expose the bank to enough risk to warrant an adverse classification, but which do possess credit deficiencies requiring management's close attention. Failure to correct deficiencies could result in greater credit risk in the future. Ordinarily, such borderline credits have characteristics that could be remedied with timely corrective action by management. Often in credit lines warranting Special Mention, it is the bank's weak origination and/or servicing policies which constitute the cause for criticism. The Bank does not require a specific provision for these loans.

  • c.

    Substandard

    Loans classified Substandard are those loans which are inadequately protected by the current sound worth and paying capacity of the borrower or by the collateral pledged, if any. These loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the bank will sustain some loss if the deficiencies are not corrected. The required specific provision is 0%-25% of the loan after considering amongst others the value of collateral pledged and depending on the severity of the weaknesses.

  • d.

    Doubtful

    Loans classified Doubtful have all the weaknesses inherent in those classified Substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of currently known facts, conditions and, values. Therefore, a specific provision of at least 50% of the loan, after considering amongst others the value of collateral pledged, should be maintained by the credit institution.

  • e.

    Loss

    Loans classified Loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off these basically worthless assets even though partial recovery may be effected in the future. The required specific provision for such loans is 100% of the loan, after considering amongst others the value of collateral pledged.

• 3.

  Treatment of mortgages

  Loans may be reported as mortgages in the Chart of Accounts, if there is an independent appraisal of the underlying property and the outstanding balance of the loan does not exceed 70% of the appraised market value. In case a borrower is 3 months in arrears with payments (either principal or interest) an updated appraisal report, by an independent appraiser, must be made within two months.  If the related appraisal report is not older than 3 years, an appraisal letter or so called ‘waardebrief’ is acceptable. However, in case of a further increase in arrears to 5 months, a complete updated appraisal report is required within two months.

  In general the classification and provisioning treatment explained in paragraph V.5.A.2 should be applied to mortgage loans. In addition, a classification as substandard, doubtful, or loss should apply in those cases where the borrower is 3 months or more in arrears with payments. The required provision percentages in these cases should be calculated after considering the execution value of the asset securing the loan.

• 4.

  Collateral value of inventory and accounts receivables

  If inventory and accounts receivables are considered as collateral, an updated listing of their collateral value should be kept by the institution on a quarterly basis; the reliability of this listing must not be questionable. In circumstances warranting an earlier update, such as credit extension to borrowers whose business operates in a depressed sector as mentioned in paragraph V.4.-5, the collateral values should be updated more frequently, e.g., monthly or bi-monthly. Hence, the collateral value should be determined prudently.

• 1.

  Credit reviews

  The Bank takes a different approach in the review, appraisal and classification of consumer credit, compared to the approach followed with respect to the other loans as explained in the previous paragraph. This difference is based on the following:

  • •

    in general the amount of specific provision required by the Bank for non-consumer credit depends on the classification of the loan based upon among other things the net worth and paying capacity of the borrower and the collateral pledged;

  • •

    however, sound consumer installment credit is generally based on the borrower’s ability to repay, with less consideration for collateral and net worth. The ability to repay such loans is largely measured by the borrower’s level of income in comparison to its current debt obligations;

  • •

    consumer loans are typically small in size and large in number. It is therefore, not practical to investigate the creditworthiness of each borrower.

• 2.

  Loan classifications and provisioning

  The loan classification of and extent of specific provisions for consumer loans should be made according to the following criteria:

  	30 to 89 days mention (1 to 3 months)	Special none
  	90 to 119 days Substandard (3 to 4 months)	25%
  	120 to 179 days Doubtful (4 to 6 months)	50%
  	180 days or more Loss (6 months or more)	100%

  The outstanding balance to calculate the required specific provision is calculated as the gross outstanding balance minus applicable compensations (as per Appendix A of the General Guidelines of the Chart of Accounts) and optional⁵The application of the discount of the collateral value of the relevant car is not mandatory. The credit institution must determine whether it considers it beneficial to opt for the discount. An institution which opts to apply the discount must follow the treatment explained in paragraphs V.5.B.3 and 4., minus the collateral value of the relevant car as specified below.

• 3.

  Collateral value of relevant car

  If a car loan is:

  • a.

    for the specific purpose to buy a car, and;

  • b.

    the car is not older than 3 years; and

  • c.

    the car serves as security only for this loan,

  than the following collateral value of the relevant car qualifies to calculate the outstanding balance mentioned in paragraph V.5.B.2:

  • (i)

    up to 60% of the lower of the listing price/ or market value of the car can be considered and discounted as collateral value during the first year of the loan agreement;

  • (ii)

    up to 40% of the lower of the listing price/ or market value of the car can be considered and discounted as collateral value during the second year of the loan agreement;

  • (iii)

    up to 20% of the lower of the listing price/ or market value of the car can be considered and discounted as collateral value during the third year of the loan agreement;

  • (iv)

    no collateral value may be considered and discounted after the third year of the loan agreement.

• 4.

  Aging record

  In order to qualify for the discount mentioned under V.5.B.3, the credit institution is obliged to maintain readily available detailed records of the relevant car loans. Furthermore, each credit institution should keep an updated aging record of all its car loans⁶This aging record or a separate overview should also at least include the percentage and amount of collateral value of the car whose collateral value is discounted as specified in paragraph V.5.B.2., and a separate aging record for all other consumer installment loans, based on the number of days in arrears as specified in the above paragraph V.5.B.2. No discount will be allowed if these requirements are not met.

• 1.

  Credit reviews

  The Bank will review the credit institutions records of restructured troubled loans and other information to determine if the records are complete.

• 2.

  Loan classifications and provisioning

  A restructured troubled loan should be classified, according to the classification criteria in paragraphs V.5.A and V.5.B. Restructuring does not improve the classification other than when it meets the criteria to remove it from the record of restructured loans. Therefore, these loans should remain in the same classification category⁷The categories mentioned in paragraph V.5.A in case of non-consumer installment loans, and the categories mentioned in paragraph V.5.B in case of consumer installment loans.prior to their restructuring. If the loan quality of the restructured loan deteriorates further, its classification should be further adjusted (lowered).

  The specific provision applicable to the classification category should be applied.

  A loan which meets the following criteria is not considered a restructured troubled loan anymore, and should be removed from the record of restructured troubled loans:

  • a.

    the borrower has paid the full amount of the rescheduled contractual principal and interest payments for a straight period of at least six months since restructuring; and

  • b.

    the borrower has paid all overdue amounts.

• 1.

  Each credit institution should maintain for each loan an adequate loan file, which should include all relevant and up to date information, amongst others the loan agreement, loan analysis, collateral documentation, insurance information, etc. The loan file should be well structured and easily accessible. Furthermore, each institution should maintain adequate and easily accessible records as to the borrowers that can be considered related or connected⁸At least the name of the borrower, the account number, outstanding amount and the type of connection.pursuant to Supervisory Regulation III.

• 2.

  Each credit institution should keep a separate updated record (listing) of all restructured troubled loans with relevant information⁹At least the name of borrower, the account number, the outstanding amount, the type of loan, the date of restructuring, the overdue amount and the SPLL as per reporting date.of each restructured troubled loan, and a separate updated record of all loans for which a provision has been set-up with relevant information¹⁰At least the name of borrower, the account number and outstanding amount, the type of loan and the SPLL as per reporting date.of each individual loan provided for.

In deze voorschriften wordt verstaan onder:

• a)

  de landsverordening: de Landsverordening toezicht beleggingsinstellingen en administrateurs (P.B. 2002, no. 137);

• b)

  de Bank: de Bank van de Nederlandse Antillen;

• c)

  de voorwaarden van de beleggingsinstelling: de statuten van de beleggingsmaatschappij, het reglement van het beleggingsfonds, de overeenkomst tussen de beleggingsinstelling en de bewaarder ter zake van beheer en bewaring alsmede alle overige voorwaarden van beheer en bewaring;

• d)

  grote belegger: een natuurlijk persoon of rechtspersoon die rechtstreeks of middellijk tenminste 25 procent bezit van de niet ingekochte uitstaande deelnemingsrechten of van de stemrechten van een beleggingsinstelling, haar beheerder of haar dochtermaatschappijen, of een natuurlijk persoon of rechtspersoon die rechtstreeks of middellijk een daarmee vergelijkbare zeggenschap kan uitoefenen in een beleggingsinstelling, haar beheerder of haar dochtermaatschappijen. Met een grote belegger wordt gelijkgesteld een natuurlijk persoon of rechtspersoon wiens deelnemingsrechten, stemrechten of vergelijkbare zeggenschap rechtstreeks of middellijk minder bedragen dan 25 procent, maar die tezamen met een of meer anderen dat percentage bereikt, indien hij en die anderen een gemeenschappelijk beleid voeren bij de uitoefening van hun stemrechten of de vergelijkbare zeggenschap.

• 1.

  De beleggingsinstelling dient bij de Bank op een kwartaal basis rapportagestaten nopens haar bedrijf in te dienen bevattend de volgende gegevens:

  • a)

    de balans en winst- en verliesrekening van de beleggingsinstelling;

  • b)

    mutatie-overzichten van het eigen vermogen van de beleggingsmaatschappij of van het vermogen van het beleggingsfonds alsmede van de beleggingen;

  • c)

    de intrinsieke waarde van de beleggingsinstelling, het aantal uitstaande deelnemingsrechten en de intrinsieke waarde per recht van deelneming.

• 2.

  De Bank kan een beleggingsinstelling opdragen een verklaring van een externe accountant met betrekking tot de in het eerste lid bedoelde gegevens over te leggen.

• 3.

  De vorm waarin de in het eerste lid bedoelde gegevens moeten worden opgemaakt, de tijdstippen waarop zij betrekking moeten hebben en de termijnen waarbinnen zij moeten worden ingediend, zijn in de door de Bank uitgevaardigde rapportagerichtlijnen bepaald.

• 4.

  De beleggingsinstelling dient jaarlijks een jaarrekening en een jaarverslag van de beleggingsinstelling op te stellen. Jaarlijks binnen vier maanden na afloop van het boekjaar dient de beleggingsinstelling haar jaarrekening voorzien van een accountantsverklaring kosteloos aan de deelnemers verkrijgbaar te stellen. De accountantsverklaring dient in te houden dat de jaarrekening een getrouw beeld geeft van de grootte en de samenstelling van het vermogen van de beleggingsinstelling en van het resultaat over het desbetreffende boekjaar.

• 5.

  Gelijktijdig met de openbaarmaking als bedoeld in het vierde lid, dient de beleggingsinstelling opgave te doen van de plaats waar de jaarrekening alsmede het jaarverslag voor de deelnemers verkrijgbaar zijn aan het adres van iedere deelnemer of, indien deze adresgegevens onbekend zijn, op de website van de beleggingsinstelling, of, indien de beleggingsinstelling geen website heeft, in een advertentie in een prijscourant van de effectenbeurs waaraan de deelnemingsrechten in de beleggingsinstelling zijn genoteerd. Tevens dient de beleggingsinstelling gelijktijdig met de openbaarmaking binnen dezelfde voorgenoemde periode een afschrift van de jaarrekening, jaarverslag en directiebrieven aan de Bank te zenden.

• 6.

  Jaarlijks binnen twee maanden na afloop van de eerste helft van het boekjaar, dient de beleggingsinstelling de halfjaarcijfers van de beleggingsinstelling openbaar te maken en dient deze voor de deelnemers kosteloos verkrijgbaar te stellen. Gelijktijdig met de openbaarmaking dient de beleggingsinstelling binnen dezelfde voorgenoemde periode een afschrift van de halfjaarcijfers aan de Bank te sturen.

• 1.

  De toelichting op de balans en de winst- en verliesrekening dient ten minste de volgende gegevens te bevatten:

  • a)

    Een sluitend overzicht van het verloop gedurende het boekjaar van de beleggingen waarbij de beleggingen worden onderscheiden naar soort;

  • b)

    De samenstelling van de beleggingen per het einde van het boekjaar, uitgesplitst volgens maatstaven die het best passen bij het beleggingsbeleid van de instelling;

  • c)

    Een vergelijkend overzicht over de laatste drie jaren van de intrinsieke waarde van de beleggingsinstelling, het aantal uistaande rechten van deelneming en de intrinsieke waarde per recht van deelneming, een en ander per het einde van het boekjaar;

  • d)

    Een mededeling in hoeverre beleggingen, met uitzondering van beleggingen in effecten die tot de notering aan een effectenbeurs zijn toegelaten, door een beëdigde taxateur zijn getaxeerd, volgens welke methode de taxatie heeft plaatsgevonden, alsmede de regelmaat waarmee deze taxaties worden verricht;

  • e)

    Het bedrag der verplichtingen, onderscheiden naar soort per het einde van het boekjaar, die voortvloeien uit dekkingstransacties met betrekking tot koers- en wisselkoersrisico in verband met de beleggingen, voor zover een en ander niet reeds in de balans en winst- en verliesrekening is begrepen;

  • f)

    Een gespecificeerde opgave van de beleggingen van de beleggingsinstelling indien voor 20% of meer in het vermogen van de afzonderlijke beleggingen wordt deelgenomen.

• 2.

  De beleggingsinstelling dient tevens onder de overige gegevens in de jaarrekening aan te geven:

  • a)

    Het totale persoonlijke belang dat de leden van de directie en, indien aanwezig, van de raad van commissarissen van de beleggingsinstelling bij een belegging van de beleggingsinstelling hebben of op enig moment gedurende het boekjaar hebben gehad;

  • b)

    Het totale aantal grote beleggers dat in haarzelf of haar dochtermaatschappijen heeft belegd;

  • c)

    Het totale aantal transacties van haarzelf of haar dochtermaatschappijen met de grote beleggers alsmede het totale bedrag dat met deze transacties is gemoeid.

• 3.

  De verplichting bedoeld in het tweede lid, onder c, geldt niet voor transacties terzake van de aan- en verkoop van deelnemingsrechten in de beleggingsinstelling of haar dochtermaatschappijen en ook niet voor transacties terzake van de aan- en verkoop van effecten die genoteerd zijn op een algemeen erkende effectenbeurs. Bij de vermelding dient een splitsing te worden aangebracht tussen transacties die de beleggingsportefeuille van de beleggingsinstelling betreffen en overige transacties.

• 4.

  Indien de beleggingsinstelling aan een van de in het tweede lid, onder b en c, genoemde informatievereisten niet kan voldoen, dient zij dit te vermelden onder de overige gegevens in de jaarrekening.

• 5.

  De informatievereisten, bedoeld in het tweede lid, onder b en c, ten aanzien van dochtermaatschappijen, gelden niet indien de beleggingsinstelling de enige grote belegger in haar dochtermaatschappij is.

• 1.

  De halfjaarcijfers van de beleggingsinstelling als bedoeld in artikel 10, zesde lid, dienen ten minste de volgende gegevens te bevatten:

  • a)

    De balans en winst- en verliesrekening, alsmede een mutatie-overzicht van het eigen vermogen van de beleggingsmaatschappij of van het vermogen van het beleggingsfonds;

  • b)

    Een overzicht van de samenstelling van de beleggingsportefeuille als bedoeld in artikel 11, eerste lid, onder b;

  • c)

    Een opgave van de intrinsieke waarde van de beleggingsinstelling, het aantal uitstaande deelnemingsrechten en de intrinsieke waarde per recht van deelneming;

  • d)

    De gegevens, bedoeld in artikel 11, tweede lid, onder b en c, waarbij artikel 11, vierde lid, van overeenkomstige toepassing is;

  • e)

    Indien van toepassing, de vermelding, bedoeld in artikel 11, derde lid.

    Een en ander per het einde van de eerste helft van het boekjaar;

• 2.

  Wanneer de beleggingsinstelling een interim-dividend heeft uitgekeerd of voornemens is dat te doen, dient hiervan in de halfjaarcijfers melding te worden gemaakt.

• 3.

  Indien de halfjaarcijfers door een accountant zijn onderzocht, dient zijn verklaring bij de in het eerste lid bedoelde stukken te worden gevoegd.

• 1.

  De administrateur dient bij de Bank op een kwartaal basis een compliance rapport nopens haar bedrijf in te dienen.

• 2.

  De Bank kan een administrateur opdragen een verklaring van een externe accountant met betrekking tot de in het eerste lid bedoelde over te leggen.

• 3.

  De vorm waarin de in het eerste lid bedoelde compliance rapport moet worden opgemaakt, de tijdstippen waarop het rapport betrekking moet hebben en de termijnen waarbinnen het rapport moet worden ingediend, zijn in de door de Bank uitgevaardigde rapportagerichtlijnen bepaald.

• 4.

  De administrateur dient jaarlijks een jaarrekening op te stellen. Jaarlijks binnen vier maanden na afloop van het boekjaar dient de administrateur haar jaarrekening voorzien van een accountantsverklaring alsmede de directiebrieven bij de Bank in te dienen. De accountantsverklaring dient in te houden dat de jaarrekening een getrouw beeld geeft van de grootte en samenstelling van het vermogen van de administrateur en van het resultaat over het desbetreffende boekjaar.

Deze voorschriften zijn in werking getreden per 1 januari 2003.

Bijlage A behelst minimumeisen voor het geheel van statuten, reglementen en overige voorwaarden van beheer en bewaring. Het zal niet steeds voldoende zijn om de inhoud van Bijlage A letterlijk in de voorwaarden over te nemen: deze voorwaarden zijn immers bedoeld als een kader waarbinnen aan de doelstellingen van de landsverordening moet worden voldaan. In de paragrafen I en II zijn bepalingen opgenomen die voor alle beleggingsinstellingen gelden. Met deze bepalingen wordt duidelijkheid verschaft over onder andere de waarde van deelnemingsrechten, de wijze waarop de activa gewaardeerd wordt, de beleggingsactiviteiten, de vergoedingen en de gevolgen van wijzigingen in de voorwaarden. In paragraaf III zijn voorschriften neergelegd die voor beleggingsinstellingen gelden die een overeenkomst gesloten hebben met een bewaarder. Zij dienen vooral om de taken en verantwoordelijkheden van de bewaarder te omschrijven. Opgemerkt zij dat het begrip ‘bewaring’ niet als fysieke bewaring behoeft te worden opgevat. Ook is bewaring door een derde onder verantwoordelijkheid van de bewaarder toegelaten. Om mogelijke misverstanden te voorkomen wordt tenslotte opgemerkt dat de in Bijlage A opgenomen punten niet per se in de statuten en reglementen behoeven te worden opgenomen: zie hiervoor de toelichting op artikel 1, onderdeel c.

Bijlage B behelst een opsomming van de gegevens die in het door de beleggingsinstellingen uit te brengen prospectus moeten worden opgenomen. Het prospectusvereiste houdt niet in dat alle verlangde informatie in één document wordt vervat. Voldoende is ook wanneer die informatie over verschillende stukken, waaronder bijvoorbeeld het laatst verschenen jaarverslag, is verspreid. Voor zover nodig volgt hieronder een rubrieksgewijze toelichting.

• 2.4

  De mededeling van de accountant impliceert de feitelijke constatering dat het prospectus de gegevens bevat conform de voorschriften ter uitvoering van het toezicht op beleggingsinstellingen en administrateurs.

• 3.2

  Indien geen letterlijke weergave van de hier gevraagde teksten wordt gegeven, kan met een samenvatting daarvan worden volstaan. De samenvatting dient wel gedegen te zijn, dat wil zeggen dat geen belangrijke informatie wordt onthouden en dat de gegeven informatie geen onduidelijkheden bevat. Uiteraard kan de samenvatting gepaard gaan met een overdruk van de belangrijkste bepalingen uit de hier genoemde stukken met betrekking tot doel en rechtsvorm van de instelling, de rechten van de deelnemers en benoeming van bestuursleden.

• 3.5

  Aangegeven moet worden of de deelnemingsrechten zijn belichaamd in originele stukken, certificaten dan wel in inschrijvingen in een register van participanten; of de deelnemingsrechten op naam staan of aan toonder luiden met de vermelding van de coupureomvang; welke de rechten zijn die aan de deelnemingsrechten zijn verbonden alsmede of ter zake van de overdraagbaarheid en verhandelbaarheid van die rechten beperkingen bestaan, en zo ja waaruit deze beperkingen bestaan.

• 3.6

  Aangegeven moet worden of de instelling van het open- of closed-end type is; of de uitgifte van deelnemingsrechten doorlopend of periodiek plaatsvindt; de periode waarin inschrijving openstaat; de koers van uitgifte en de betaling van de uitgifteprijs en eventuele kosten die in rekening worden gebracht; of bij de uitgifte gebruik wordt gemaakt van tussenpersonen alsmede of de uitgifte kan worden opgeschort, en zo ja in welke gevallen.

• 3.7

  Vermeld moeten worden de termijn waarbinnen terugbetaling uiterlijk kan geschieden, de wijze van inlevering van de deelnemingsrechten, de wijze van terugbetaling en de kosten die daarop in mindering worden gebracht alsmede of de terugbetaling kan worden opgeschort, en zo ja in welke gevallen. Deze verplichting geldt niet voor closed-end instellingen.

• 3.10

  De vermelding van vergoedingen en onkosten dient een specificatie te bevatten van de onderscheiden factoren die de vergoedingen en onkosten vormen, zoals managementkosten, administratie- en drukkosten. Het is toegestaan deze bedragen per categorie te totaliseren en te salderen.

• 3.18

  De beschrijving dient aan te geven op welke wijze de nettowinst en winstuitkering worden bepaald; of de winst kan worden bestemd voor herbelegging; of winstuitkering plaatsvindt in contanten of deelnemingsrechten.

• 3.21

  De gegevens dienen inzicht te verschaffen in de fiscale positie van de instelling in het kader van de toepasselijke fiscale wetgeving alsmede over de daarmee verband houdende status van de winst van de instelling. Indien het vaststaat dat het toepasselijke belastingstelsel zal worden gewijzigd, bijvoorbeeld als gevolg van een officieel aangekondigde doch nog niet in werking getreden wet of verdrag(swijziging), dient deze informatie vermeld te worden. Voor beleggingsinstellingen die participanten hebben die over de wereld verspreid zijn, kan deze verplichting op problemen van praktische uitvoerbaarheid stuiten. In die gevallen kan worden volstaan met een beknopte beschrijving in het prospectus van de fiscale positie van de instelling in de Nederlandse Antillen en van de gevolgen daarvan voor de participanten alsmede van die in het land van de zetel van de instelling indien die zetel buiten de Nederlandse Antillen is gelegen. Wel zullen de onderhavige instellingen in het prospectus dienen mede te delen dat verdere beknopte informatie over de fiscale inhoudingen op uitkeringen aan participanten, waarop de beschrijving in het prospectus niet van toepassing is, bij de instelling opgevraagd kan worden.