Financial Law

What is financial law?

Financial law governs the rules of the game regarding financing, financial products, and supervision of the financial sector. It touches upon lending and collateral, the duty of care of banks and advisors, investments, insurance, and the rules of the Financial Supervision Act (Wft). When properly regulated, it prevents damage; if things go wrong, it provides the avenues for redress or for complying with the regulator's requirements.

Our lawyers and in-house counsel assist both international corporations and the baker on the corner — from setting up a financing structure to a dispute with the bank or an investigation by the AFM.

Supervision: Wft, AFM and DNB

Anyone providing financial services or offering products is subject to the Financial Supervision Act (Wft). The Authority for the Financial Markets (AFM) exercises conduct supervision: checking whether you comply with the rules and how you treat customers. The Dutch Central Bank (DNB) exercises prudential supervision: regarding the soundness and capital of financial undertakings. We guide license applications, assess whether an activity requires a license, and assist you in enforcement proceedings such as a directive, an order subject to a penalty payment, or an administrative fine. For broader supervisory practice, we collaborate with our Supervision and Enforcement.

Financing, credit and collateral

Financing stands or falls on clear documentation. We draft or review credit and financing agreements, and arrange the associated securities: pledge on inventory and receivables (Articles 3:236 and 3:239 of the Dutch Civil Code), mortgage (Article 3:260 of the Dutch Civil Code), suretyship (Article 7:850 of the Dutch Civil Code), and joint and several liability. For a simple loan between a company and a lender, you can also make use of our loan agreement. In doing so, we pay close attention to the balance between advance payment and risk.

The duty of care of banks and advisors

Banks, insurers, and financial advisors are subject to a special duty of care. They must warn you of risks and may not recommend products that are unsuitable for you. If this duty of care is breached—in the case of over-lending, an interest rate swap, an investment mortgage, or unsound advice—this may be unlawful (Article 6:162 of the Dutch Civil Code) or constitute an attributable breach of contract (Article 6:74 of the Dutch Civil Code). We assess your case and, where possible, recover your damages through the bank, the complaints institute Kifid, or the courts.

Disputes with the bank and credit termination

A bank cannot simply terminate a credit agreement. Due to its own duty of care and the principles of reasonableness and fairness (Article 6:248 of the Dutch Civil Code), termination must be proportionate and given a reasonable notice period. We assist entrepreneurs when the bank terminates the credit, increases the interest or surcharge, or invokes a guarantee, and we first seek a workable settlement before initiating litigation.

Financial law and your business

Financing often touches upon the structure of your company: a holding company acting as guarantor, co-financing shareholders, or an acquisition financed with debt. We address these aspects together with our corporate law to ensure that collateral, liability, and control are aligned. This prevents financing from causing surprises later on.

Lawyer or legal expert in financial law?

You can resolve many financial and legal questions without going to court. For advice on the Financial Supervision Act (Wft), drafting financing documentation, applying for a license, or negotiating with the bank, an in-house counsel is often sufficient. However, if proceedings before the court become necessary, a lawyer is mandatory. We have lawyers and in-house counsel on one team and determine together with you what suits your needs best, for large corporations as well as for small business owners.