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The AFM imposes an order for incremental penalty payments on ForeClosure Investments B.V.

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On 30 October 2009, the Netherlands Authority for the Financial Markets (AFM) imposed an order for incremental penalty payments on: ForeClosure Investments B.V. (ForeClosure) in Lichtenvoorde.

In order to comply with order, ForeClosure was obliged to provide its bond holders, to the extent it concerns consumers within the meaning of the Dutch Civil Code, with essential information on the following, and to publish this information on its website:

Insight into:

  • the total amount of money paid in;
  • the alleged investments in immovable property in Germany and France; 
  • the money loaned to the shareholders personally and to companies affiliated with the shareholders;
  • the security provided by means of a bank guarantee; 
  • a balance overview of ForeClosure's assets and liabilities as at 31 July 2009 and all costs incurred as of 31 July 2009.

The order for incremental penalty payments may increase from € 4,000 up to a maximum of € 80,000 for each day or part thereof that ForeClosure fails to comply with the order.

The AFM considers this information of interest to the bond holders so they can make a decision concerning the exercise of their contractual rights as bond holders. Failing to provide this information means that ForeClosure performed a trade practice that is unfair within the meaning of Section 6:193b and 6:193d of the Dutch Civil Code. Bond holders can use this information to form an opinion on the financial and legal position of
ForeClosure and consequently of the causes of the liquidity deficit and the ceasing of interest payments.

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.

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