DNB: Delta Lloyd CFO failed on three criteria
Following on from the Dutch Central Bank (DNB) decision to fine Delta Llloyd and order the dismissal of its CEO, the Dutch insurer and financial services provider has confirmed its intention to challenge the decision.
Delta Lloyd revealed that according to the DNB, its CFO failed with regard to independence, overview and quality of judgements, which are three of the 16 requirements provided by DNB.
DNB accused Delta Lloyd of improper gains as a result of lowering its interest rate risk hedges in 2012, days before DNB changed the rules for assessing long-term insurance liabilities.
Both parties disagree on whether Delta Lloyd’s decision was based on insider information or publicly available news.
Delta Lloyd has now confirmed that the DNB investigation is based on paragraph 3.10 and 3.17 of the Wet op Financieel Toezicht (Financial Supervision Act), assessing conflicts of interest and misconduct of companies and leading members based in the Netherlands outside the European Union.
The paragraphs in question also address insufficient risk management, undermining client trust in the financial sector and failure to provide sufficient liquidity measures.
According to Dutch law, Delta Lloyd has the ability to challenge the DNB decision within five days. The firm confirmed on Monday that it will take legal measures against the DNB decision.
Delta Lloyd shares recovered by +0.33%, according to Bloomberg data.