This Act came into force on 13 June and has retroactive effect from 20 January 2012. The Act introduces two categories of measures to add to and strengthen the government's powers of intervention in financial institutions:
- The first category relates to timely and efficient liquidation of failing banks or insurers. The bill gives the Dutch Central Bank (DNB) the power to draw up a plan behind the scenes for the transfer of deposits, other liabilities or assets, or shares to a private third party. DNB could also seek a court decision ordering a transfer scheme, emergency scheme or bankruptcy. A request to order a transfer scheme must be accompanied by the transfer plan. A request for an emergency scheme or bankruptcy may be filed without the plan. After the court order, the transfer plan is implemented by the transferor, the emergency administrator or the bankruptcy trustee.
- The second category of measures is intended to safeguard the stability of the financial system as a whole. To that end, the Act grants two special powers to the Minister of Finance: the power to intervene in the internal affairs of a financial institution and the power, where necessary, to take over ownership.
De Brauw has issued a legal alert about the new Intervention Act, which can be downloaded from our website.
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