Update: 7 May 2012: The fine has been moderated from €6.000 to €1.000 euro. The decision of the AFM has become irreversible by law. There is no possibility of filing an objection or appeal against the decision.
On 22 August 2011, the Netherlands Authority for the Financial Markets (AFM) imposed an administrative fine of €6,000 on Mr Turlings, trading under the name De Automakelaars Sittard, with its registered office in Echt.
The AFM has established that Mr Turlings, in the period of 25 August 2008 to June 2009, provided brokerage services with respect to warranty insurance products without holding the required AFM licence. De Automakelaars Sittard provided brokerage services with respect to warranty insurance products for the business market. Its clients included garage businesses, LNG installation businesses and tuning companies. Warranty insurance covers the warranty obligations of car businesses towards their customers. The activities of De Automakelaars Sittard were focused on requests for offers of warranty insurance products. This included forwarding name and address details, which constituted brokering in insurance products, according to the AFM.
This is a violation of the prohibitory provision that provides that it is illegal to provide brokerage services in the Netherlands without licence (Section 2:80, first subsection, Wft). The fine was mitigated from €96,000 to €6,000 in view of the seriousness of the violation and the limited financial capacity of the offender. Mr Turlings adjusted his working methods as early as June 2009 of his own accord well before the AFM sent him an initial request for information, which means that brokerage activities within the meaning of Article 2:80 of the Wft have not taken place since June 2009.
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.
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