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Civil liability under FSA

By introducing the Financial Supervision Act, the Dutch legislature brought an end to years of confusion over the civil-law effects of breaching that act. It was determined that breach of the act would have no effect on agreements and transactions that have been concluded unless the act specifically provides otherwise. This means for example that an issue of securities without the availability of an approved prospectus does not affect the issue and the purchase of the securities.

In both cases, it remains possible to invoke error, fraud and abuse of circumstances.

The Dutch legislature did not provide that clarification to detract from the legal position of consumers, which is evident from the enactment of the Unfair Commercial Practices Act (which also applies to prospectus liability) and from the Consumer Protection Enforcement Act. Those acts offer consumers a basis to claim damages under civil law in addition to the ‘standard’ unlawful act proceedings.

Are you confronted with parties acting in breach of the Financial Supervision Act and have you incurred a loss as a consequence? Eversheds Sutherland will be happy to discuss the possibilities to have your loss compensated with you. Close collaboration between our banking and securities team and/our corporate litigation team guarantees a specialist and successful approach.

Our expertise comprises:

  • mapping your legal position and providing procedural advice;
  • conducting litigation before courts of law and industrial dispute boards such as KIFID and DSI;
  • initiating collective compensation actions;
  • advising on the conclusion of agreements with market parties in the financial sector; and
  • informing and advising on obligations arising from the Financial Supervision Act.

Miriam Ee, van