ACM launches investigation into municipal conservators

The Netherlands Authority for Consumers and Markets (ACM) will assess whether the Dutch city of Deventer with its conservatorship policy violates the Dutch law on competitive neutrality, the Dutch Act on Government and Free Markets. Deventer offers, among other services, conservatorships for individuals with low incomes dealing with financial problems. Upon request, Deventer can appoint a conservator. This conservator will then manage these individuals’ financial affairs.

ACM has received questions from commercial conservators about the situation in Deventer. They believe that municipalities should offer conservatorships for at least the cost price because they argue the Dutch Act on Government and Free Markets is applicable.

Deventer on the other hand, believes that the Dutch Act on Government and Free Markets does not apply, because it argues that conservatorships are not a commercial activity. In addition, the municipality argues that it does include the integral costs.

Investigation by ACM

ACM is currently assessing whether the Dutch Act on Government and Free Markets applies to the situation in Deventer. As part of that assessment, the first question is whether offering conservatorships is a commercial activity. If the Act applies, municipalities will have to include the integral costs. Municipalities do not have to stop offering conservatorships as long as they comply with the rules of the Dutch Act on Government and Free Markets.

Chris Fonteijn, Chairman of the Board of ACM, explains: “To ACM, it is important that individuals that have become dependent on a conservator, too, are able to choose who manages their financial affairs.”

Conservatorship

Sometimes, individuals are unable to manage their own financial affairs properly. In order to prevent others from taking advantage of that situation, a sub-district court can appoint a conservator. The conservator will then manage their financial affairs. 

More and more municipalities offer conservatorships themselves. ACM receives a lot of questions about this new development. The investigation into the municipality of Deventer is thus also of significance to other municipalities and conservators.

The Dutch Act on Government and Free Markets

The government is allowed to offer products and services on the market. However, it needs to comply with the rules when offering them. Those rules are in place to protect commercial businesses against unfair competition by government organizations.