On 30 October 2009, the Netherlands Authority for the Financial Markets (AFM) imposed an administrative fine of € 6,000 on Hypodroom Financiële Dienstverlening B.V. (Hypodroom).
This fine was imposed because Hypodroom advised an excessive mortgage loan to consumers. The AFM in principle applies the standard from the Code of Conduct for Mortgage Finance, which was drawn up by the Liaison Committee for Mortgage Credit Institutions CHF (CHF Standard). The CHF standard takes into account, inter alia, the consumer's income in the determination of the maximum mortgage loan. Hypodroom's advice on the amount of the mortgage loan was insufficiently based on the income of the relevant consumers. In of those cases insufficient information was furthermore obtained about the (surplus) value of the house to be sold. The AFM investigated 9 instances in which Hypodroom issued advice in the period of 1 January to 1 April 2008.
This means that Hypodroom violated Article 4:23, first paragraph, of the Financial Supervision Act. This Act obliges financial undertakings that advise consumers to, inter alia, obtain information on the consumer's financial position, knowledge, experience, objectives and willingness to accept risk in the interest of that consumer and to the extent reasonably relevant to the advice. The financial undertaking must ensure that the advice, to the extent reasonably possible, is also based on the information to be obtained.
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).
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.