What does the licensing obligation of the WFT mean?
Any financial institution carrying out any of the activities listed below is required to be licensed. This licence based on the WFT rules is issued by the AFM (Authority for Financial Markets). It is possible to own one or more permits of the 6. For each part where a permit is obtained, the work carried out may not be done otherwise. #financien #afm
Who have a permit obligation
In principle, any financial institutions that perform any of the following work must have a #vergunning (offering, mediating, advising, authorized agent and mediating reinsurance). Banks and insurance companies do not need to be inspected separately because they have already been thoroughly tested in other areas. In the article about ' which financial products and services are covered by the WFT ', you can read more about what the work is. It is not always necessary for financial service providers to have a licence themselves. For example, the financial institution may have a licence and the financial advisor himself is not authorised. The institution will then have to ensure that the adviser has the required knowledge in order to be able to give an opinion. Such a person is called a connected mediator, the mediator may only give advice on the products that the financial products to which it is affiliated. The permits issued by the #WFT uses his:
- Basic (non-impactful (simple products).
- Insure life (life insurance and pensions).
- Insure damage (private or companies).
- Mortgage credit (mortgages and other related products).
- Consumer credit (consumer loans).
- Power of attorney (authorized companies).
When does the licensing obligation expire
The AFM may decide to withdraw the licence and no work for which the licence has been revoked may be carried out. The #vergunning is withdrawn if the person dies. In the case of an institution such as it ceases to exist through a merger or division. A licence may be obtained in the event of merger or division, but the institution must first be reassessed against the conditions.
When is the authorisation revoked
If the institution or person has made a gross mistake or deliberately gave wrong advice to increase commission, for example, a warning will be given. It varies on a case-by-case basis, but after a second warning, the licence is withdrawn and the work cannot be continued. The AFM may revoke the authorisation at the following events.
