On 20 August 2010, the Netherlands Authority for the Financial Markets (AFM) imposed an administrative fine of € 6,000 on dBa Advies B.V. (dBa). DBa is a financial service provider that issues advice in the field of pensions. The AFM has imposed a fine on dBa for failing to obtain sufficient information when providing advice on investment objects. The result was that unsuitable advice was issued to clients.
The AFM has established that dBa, in the period of April 2008 to December 2008, recommended a certain pension product to three employers, while DBA, with respect to three files, failed to obtain sufficient information about the financial position, objectives, risk acceptance and the knowledge and experience of the employer.
As a result of the fact that no or insufficient information was obtained in the three files investigated, dBa was unable to base its advice in part on this information.
In doing so, dBa violated Article 4:23, paragraph 1, at a and b of the Financial Supervision Act. This Act obliges financial undertakings that provide advice to clients to, inter alia, obtain information on the client's financial position, knowledge, experience, objectives and willingness to accept risk, in the interest of that client 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.