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The AFM imposes an administrative fine on Postbank N.V.

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The Netherlands Authority for the Financial Markets (AFM) announces that on 6 February 2009 it imposed an administrative penalty of € 30,000 on Postbank N.V., because it failed to obtain sufficient information during remortgaging and taking out life insurance. The violations were identified during the AFM’s market-wide investigation into mortgage advice conducted in 2007. The AFM investigated a total of 48 instances where the Postbank issued advice.

In the period of 1 January 2007 to 15 March 2007, the Postbank, in its advisory capacity with respect to remortgaging and taking out life insurance, failed to obtain sufficient information in fourteen out of forty-eight instances in which it issued advice. When issuing advice, a mortgage consultant is required to request information from its client concerning the client’s financial position, knowledge, experience, objective and willingness to accept risk. This information is required in order to issue advice that is suitable to the client’s specific situation.

The Postbank failed to obtain information on the costs of remortgaging (penalty interest) and any current life insurance with respect to the advice investigated by the AFM. No information was obtained on the financial position of the surviving partner during the Postbank’s advice on taking out life insurance. These details are relevant to determine whether the advice to remortgage and/or take out life insurance is suitable to the client. This means that the Postbank did not issue suitable advice and therefore violated Article 4:23(1) of the Financial Supervision Act (Wft).

If you have any questions or complaints you can also contact the Financial Markets Information Line on: + 31 (0)900-5400 540 (5 eurocents per minute) or from abroad +31 20 797 3715.

The AFM promotes fairness and transparency within financial markets. We are the independent supervisory authority for the savings, lending, investment and insurance markets. The AFM promotes the conscientious provision of financial services to consumers and supervises the honest and efficient operation of the capital markets. Our aim is to improve consumers’ and the business sector’s confidence in the financial markets, both in the Netherlands and abroad. In performing this task the AFM contributes to the prosperity and economic reputation of the Netherlands.

The AFM is committed to promoting fair and transparent financial markets.

As an independent market conduct authority, we contribute to a sustainable financial system and prosperity in the Netherlands.

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