The Netherlands Authority for the Financial Markets (AFM) announces that it, on 9 June 2009, imposed an administrative fine of € 6,000 on AVéWé Holding B.V. (AVéWé), because one of its affiliated companies (Circular B.V., Purmerend office) provided advice on mortgage loans that have led to an overextension of credit. These instances of advice were not reasonably based on the information obtained from the clients.
AVéWé is a financial services provider that advises clients on, inter alia, mortgage loans. The Act on Financial Supervision (Wft) obliges parties to provide services with due care to clients (Article 4:23 Wft). The AFM imposed the fine because the mortgage advice issued by AVéWé have led to an overextension of credit in nine of the thirteen files. The fact that the advice issued by AVéWé has led to overextension of credit means that AVéWé has failed to comply with its statutory obligation to base its advice - to the extent reasonably possible - on, inter alia, the information obtained from the client about its financial position. The AFM investigated a total of thirteen cases in which the Purmerend office issued advice.
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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.
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