NMa: Notaries to adjust their code of conduct

The Royal Dutch Notarial Society (KNB) recently dropped the prohibition on directly recruiting potential clients, the requirement to ‘advertise objectively,’ as well as the prohibition on charging rates below cost price. In addition, the KNB adjusted and clarified a number of rules of conduct, including the ban on commissions, which has been worked out in greater detail in the new Policy Rule on Commissions. According to the Netherlands Competition Authority (NMa), competition between notaries is expected to get a boost, while, at the same time, the notaries’ core values are observed: independence and impartialit

‘The adjustments to the code of conduct will lead to a better understanding of the services notaries offer, to more options for clients, and possibly to a better price-quality ratio for consumers,’ says Henk Don, member of the Board of the NMa. The NMa had approached the trade association about potentially anticompetitive effects of some of its rules of conduct. KNB members, all notaries in the Netherlands, must comply with these rules. The adjustments of the code of conduct are the result of that intervention.

Since 2004, the NMa has looked into the self-regulation efforts of various professional groups. In 2006, the trade associations for architects, BNA and BNSP, adjusted their self-regulation policies. In June 2007, the NMa published its final report on the self-regulation efforts of accountants. In 2011, the Netherlands Order of Accountants and Administration Consultants (NOvAA) adjusted its code of conduct.

On January 1, 2013, the NMa will merge with the Netherlands Consumer Authority and the Independent Post and Telecommunications Authority of the Netherlands (OPTA), creating a new authority: The Netherlands Authority for Consumers and Markets (ACM). This new authority aims to ensure that markets work in order to protect consumer interests. To this end, the ACM will focus on three main themes: consumer protection, industry-specific regulation, and competition oversight.