On 26 May 2009, the Netherlands Authority for the Financial Markets (AFM) imposed an administrative fine of € 6,000 on Drieman/Huis & Hypotheek Woerden B.V. (Drieman).
Drieman recommended a mortgage that was too high to nine different consumers. The AFM in principle applies the standard from the Code of Conduct for Mortgage Finance [Gedragscode Hypothecaire Financieringen], which was drawn up by the Liaison Committee for Mortgage Credit Institutions CHF [Contactorgaan Hypothecair Financiers] (CHF Standard). The CHF standard takes into account, inter alia, the consumer's income in the determination of the maximum mortgage loan. Drieman's advice on the amount of the mortgage loan was insufficiently based on the income of the relevant consumers. In addition, the advice on the amount of the mortgage loans was insufficiently based on information on the possible savings of the four different consumers.
Drieman failed to obtain sufficient information in respect of five different consumers. This concerned information on possible savings in respect of four consumers, and information on old-age pension in respect of one consumer.
This means that Drieman violated Article 4:23, first paragraph, of the Act on Financial Supervision. This Act obliges financial undertakings, which provide consultancy services, to provide consumers with suitable advice. For this purpose, they are required to obtain information on the client and take this information into account when providing advice.
Interested parties can submit the AFM's decision to the competent court for review.
If you have any questions or comments you can contact the Financial Markets Information Line on: 0900-5400 540 (5 eurocents per minute) or from abroad +31 20 797 3751.
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.