Dutch Parliament votes in favour of strict curbs on remuneration in Dutch financial sector (including the world’s toughest bonus cap of 20%)

Further to our alerts of 28 November 2013, 15 July 2014 and 2 October 2014, we can now report that Dutch Parliament voted in favour of proposed strict remuneration curbs (including the world’s toughest bonus cap of 20%) today.

The new rules are set to apply to financial undertakings seated in the Netherlands as well as to all of their subsidiaries in and outside the Netherlands (extra-territorial effect).

The proposed rules including several amendments will now be submitted to the Dutch Senate to consider and finalise.

The Dutch government is still steering towards 1 January 2015 as the effective date of the new rules.

To read more about the proposals, please click here for details and FAQs on the new rules and their scope in general and on the 20% bonus cap, its limited and complex exceptions and the proposed maximum severance payment in particular.

We will continue to closely monitor this and keep you abreast of relevant developments as they appear. In the meantime, please contact us if you have any queries.