this is aptly illustrated by the so - termed self - assessments, whereby institutions assess their business integrity with the help of questionnaires. dnb subsequently examines these self - assessments. this is an efficient way to chart the risks within a sector without having to visit each institution individually. self - assessments were introduced at small and medium - sized insurers this autumn ; they were developed in consultation with the sector in order to accommodate insurer - specific features. we also learnt greatly from the afm ’ s experiences with its contribution model. dnb ’ s operational supervision is obviously closely connected to the integrity issues of concern to the intelligence and security service, the afm, tax authorities, fiscal and economic intelligence service and the police. dnb neither prepares nor continues the work of the investigative and prosecution authorities, but we cooperate well with them and share information with other supervisors and investigative and prosecution agencies, naturally keeping within the statutory bounds of confidentiality. as the chair of the financial expertise centrum, the fec, dnb is committed to further intensifying cooperation between the services. besides the integrity supervision of persons, business relations and organisations, dnb also concerns itself with the integrity of the entire financial sector. here too, integrity goes beyond compliance with statutory rules and provisions. unsound conduct can damage the sector as a whole, even if, strictly speaking, no violations occur. the wrong sort of incentives could induce sound people, working in sound companies, to exhibit behaviour that impacts negatively on market integrity in general. notably in this area, it is up to the sector to act responsibility. you are responsible for making the right choices. where those choices are difficult, dnb would be glad to discuss them with you. but if you don ’ t make any choices at all, you will find that dnb takes its role as supervisor very seriously when it comes to integrity. in my view, this sector is itself responsible for all aspects and manifestations of sound conduct. confidence must be earned! and what the sector, or certain players in the sector, do or do not earn, is now a target of much agitation and dissatisfaction and a subject of debate that focuses particularly on transaction - related bonuses. without going so far as to say that the credit crisis is a direct result of such bonuses, we can say that the incentives attached to such bonuses could generate irresponsible and socially undesirable behaviour. behaviour that in any case lowers confidence in the reliability of the financial sector

. let me assure you that dnb will keep a strict watch on bonus structures at financial institutions that induce directors to take irresponsible risks. we do not need to completely prohibit bonuses, but it is essential to align the size and the time frame of bonuses more closely to the longer - term goals of the enterprise itself. as far as i am concerned, bonuses could be scrapped altogether. i would prefer to see executives drawing good, competitive salaries. that salary should be enough incentive for a good and sound performance that actually contributes to financial institutions ’ long - term objectives. i am convinced that the financial sector itself would benefit most from stable pay structures. of course this issue must be tackled internationally. globalisation has removed the borders in the financial sector. since financial risks have become marketable, and borders between countries have blurred, losses are spread more widely. we not only reap the rewards of globalisation, but the bitter fruits too, because everybody is affected when things go badly wrong. that ’ s why we need international discussion and action on bonus structures, integrity and other such matters. the financial stability forum, in which i sit as the chairman of the basel committee, published a code of conduct for pay structures in july. it centres on the recommendation that pay incentives should be based on actual performance and should be in line with the longterm interests of shareholders and the profitability of the enterprise as a whole. in addition, dnb is supported at national level by the afm ’ s serious approach to its integrity task. afm supervises the sound conduct of the sector towards its customers, the consumers. and only when the sector deals soundly with consumer interests, will consumers regain confidence in the financial sector. the first steps have been taken : nationally and internationally, financial sector integrity is on the agenda. in the coming period we will join in european and global discussions on sound, confidence - inspiring international supervision. supervisors, governments and enterprises together. because if there ’ s one thing we ’ ve learnt from the credit crisis, from the loss of confidence in the financial sector, it is – in my opinion – that we can only regain that confidence through national and international cooperation!