On 18 August 2009, the Netherlands Authority for the Financial Markets (AFM) imposed an administrative fine of € 6,000 on Leensysteem B.V. (Leensysteem) because it failed to obtain sufficient information when consulting on consumer credit.
Leensysteem is a financial services provider that advises clients on, inter alia, consumer credit. 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 Leensysteem, in the period of November 2007 to June 2008, failed to obtain sufficient information in all of the instances it provided advice that were investigated. When issuing such advice, a consultant is required to obtain information from a client concerning its financial situation, knowledge, experience, objectives and willingness to take risks. This information is necessary to be able to issue advice suitable to a client's specific situation. The AFM investigated a total of seven instances where Leensysteem issued advice.
It cannot be ascertained in the cases investigated whether the product is in line with the client's specific situation, because insufficient information was obtained. The AFM was not able to establish in every investigated file why the product was recommended on the basis of the information that was obtained either.
Interested parties can submit the AFM's decision to a court for review.
If you have any questions or comments you can also contact the Financial Markets Information Line on: 0900-5400 540 (5 eurocents per minute).
The AFM promotes farness 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.