Fintech 2026

NETHERLANDS Law and Practice Contributed by: Roderik Vrolijk, Rogier Raas, Ingrid Viertelhauzen and Maarten Weekenborg, Stibbe

Proportionality in Practice Where differences arise, they tend to be in the prac - tical application of requirements rather than in the legal framework itself. Prudential requirements – par - ticularly capital adequacy, governance and reporting – are generally applied proportionately, meaning that smaller or less complex firms face lighter operational burdens than systemically important institutions. For example, a payment institution’s own-funds require - ments under PSD2 are significantly lower than the capital buffers required of banks under CRR/CRD. A similar proportionality principle applies to rules and expectations governing the operations and set-up of a regulated firm. Incumbents Face Additional Layers Incumbents, such as traditional banks (credit institu - tions) are subject to additional regulatory layers – such as the Single Supervisory Mechanism (with direct ECB oversight for significant institutions), deposit guaran - tee scheme obligations, resolution planning under the Bank Recovery and Resolution Directive (BRRD), and more extensive governance requirements – that do not apply to most fintech entrants. This effectively means that while the entry-level playing field is formal - ly level, the full regulatory burden on credit institutions is considerably heavier. 2.5 Regulatory Sandbox The Netherlands does not currently operate a regu - latory sandbox that allows the regulator to disapply certain statutory requirements. Instead, DNB, the AFM and the Authority for Consumers & Markets ( Autoriteit Consument & Markt , ACM) jointly operate the Inno - vationHub. This facility serves as a point of contact for innovative firms seeking regulatory guidance and provides early-stage support in navigating the licens - ing landscape. The InnovationHub, however, does not create regulatory exemptions. Separately, under the EU AI Act, the Netherlands must establish an AI regulatory sandbox by August 2026, which will provide structured compliance guidance but no regulatory exemptions. 2.6 Jurisdiction of Regulators The Netherlands operates a “twin peaks” supervisory model. The AFM supervises market conduct, including

ing products, and management or performance fees for investment services. Restrictions on Inducements (MiFID II) For investment services subject to MiFID II, strict rules on inducements apply. Independent investment advisers and portfolio managers are prohibited from receiving or retaining third-party commissions. Where inducements are permitted, they must be designed to enhance the quality of the service and must be clearly disclosed to the client. Consumer Credit and Insurance Disclosure For consumer credit products, the Wft and underly - ing regulations require the provision of pre-contractual information – including the annual percentage rate of charge (APR), total cost of credit and repayment terms – enabling consumers to compare products. Specific commission and inducement rules apply to insurance intermediaries and managing general agents. For insurance distribution, the applicable dis - closure regime requires transparency about the nature and basis of the remuneration received by intermedi - aries. General Transparency Obligations Across all regulated financial services, the overarching duty-of-care provisions in the Wft require that com - pensation structures do not conflict with the client’s best interests. Firms must ensure that fee structures are transparent, non-misleading and adequately dis - closed before the client enters into an agreement. 2.4 Variations Between the Regulation of Fintech and Legacy Players Regulatory Neutrality as the Starting Point A fundamental principle of Dutch financial regulation is technological neutrality. The Wft does not distin - guish between fintech firms and traditional financial institutions. The same licence requirements, conduct standards and prudential rules apply to any entity pro - viding a particular type of financial service, regardless of whether it is a “fintech” or a more traditional firm. This principle of “same activity, same risk, same rules” means that fintechs operating in a regulated market face substantially the same regulatory obligations as legacy players.

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