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• The enterprises are aware that they are not allowed to grant a higher amount of credit than is legally permitted (and is responsible). The AFM is pleased to note this. The model for determining responsible lending (see our website) was present in all the surveyed files. However, we would like to point out to the enterprises that the filling in of certain fields in this model, such as living expenses, the current financing costs (including alimony and premiums for risk insurance linked to the credit), the type of household, and the effective interest rate (effective APR) could be accomplished in an even better manner. The reasons for filling in certain fields in a certain way could also be recorded in a better manner.

• The costs of the credit must always be included in the calculation of the effective interest rate.

• Due to the fact that the model has not always been properly filled in, it cannot be demonstrated, in all the cases, that responsible lending has occurred. We are aware that, with effect from 1 July 2012, the new regulations mean that less credits can be granted to clients with a low income, and that the clients must also become accustomed to the gathering of information by the enterprises. However, this should not be a reason for the failure to gather and record this information.

• The gathering of information concerning knowledge, experience, and risk appetite must improve. The questionnaires used by the enterprises must be more specific on this point, in order to enable the file to show that suitable advice has been provided.

• The various documents that substantiate the advice must be easier to find in the file. This pertains, in particular, to bank statements, payslips, and policy and/or insurance terms and conditions for the insurance concluded. In this context as well, this information is needed to determine whether suitable advice has been provided, or whether responsible lending has occurred.

• Some files that we examined showed that, based on the model, the maximum loan amount was provided. The result is that the clients run a risk that the slightest change in their private life will mean that they can no longer repay the loan. The file must contain a record stating that the client is aware of this risk.

• In some files, we saw that a life insurance policy entailing a constant insured amount had been taken out, in addition to an annuity mortgage. The AFM believes that the client should have had it explicitly explained that the risk insurance could also have been taken out with a decreasing annuity. This fact should be shown in the file.

• When contracts for life insurance policies are concluded, these are sometimes based on the amount the client can and wants to pay each month. A substantiation of the required insured amount must be present in the file. The AFM believes that such substantiation is necessary, to be able to give a suitable advice.

• The general opinion concerning the AFM was positive; 56% were positive, while 38% replied neutral. For de Nederlandsche Bank (DNB) these scores were 69% and 25% respectively.

• Concerning the provision of information on the new regulations by the AFM, 44% were satisfied. With regard to the way in which the AFM prepared enterprises for the new regulations, 38% were satisfied, while a quarter were neutral.

• The website of the AFM was considered reasonable to good (two-thirds). At the time the questions were asked, it was observed that the site was not available in English, was not conveniently arranged, and was not always easy to find. In the meantime an English website has also been made available.

• The group that considers that the AFM has sufficient discussions with market parties (12%) is the same size as the group who is not satisfied about this; the remaining answers were neutral.

• 93% of those surveyed were positive about the personal contact with the AFM. The letters and emails from the AFM were considered to be constructive (60%), pleasant in tone (70%), and easy to understand (80%).

• As positive aspects of the new regulations, the respondents also stated that there is now a duty of care towards the client, there is more clarity regarding the application of credit standards for the prevention of excessive credit provision, and that the emphasis is now on properly informing clients.

• One in five of those surveyed has doubts about the practical knowledge of the employees, considers the AFM is not visible enough, and believes that the AFM has insufficient discussions with the market parties.

• Negative aspects reported were that the rules are too ‘European’, that no account is taken of the local culture, and that too much information is requested from clients, which they also do not want to provide. Furthermore, it was stated that some people with low incomes are now able to borrow less money than before, and that the public should be better informed about this.