Update 26 January 2013: The decision of the AFM has since become final and it can no longer be submitted to the courts for review. The fine is mitigated from €60.000 to €500.
The AFM imposes an administrative fine on Mr C.S. Krommenhoek, due to his de facto management during the offence committed by N.C.I.C. B.V.
The Authority for the Financial Markets (the AFM) imposed an administrative fine of €60,000 on Mr C.S. Krommenhoek, residing in Enschede, on 11 May 2012. Mr Krommenhoek acted as the de facto manager during the illegal provision of intermediary and sub-intermediary services in relation to consumer credit by N.C.I.C. B.V. (NCIC), established in Enschede.
Offence by NCIC
The AFM has established that at least during the period from 18 March 2011 to 23 August 2011, NCIC obtained more than simply contact details from consumers via a call centre. The information obtained concerned data relevant to the purchase of a financial product that related to the consumer’s work, income, mortgage or rental expenses and any entries at the Credit Registration Agency, or BKR. This information was then forwarded to a financial services provider affiliated to NCIC which had obtained a licence from the AFM for credit intermediation. NCIC thereby provided the contact between the consumer and this financial services provider.
NCIC has carried out activities as an intermediary designed to bring about the conclusion of credit agreements without a licence to do so. This is a contravention of the Section 2:80 (1) of the Financial Supervision Act (Wft). NCIC ceased its illegal activities as an intermediary or sub-intermediary as of 23 August 2011.
De facto management by Mr Krommenhoek
Mr Krommenhoek was indirectly an executive director of NCIC. He submitted an application for a licence to provide intermediary services in relation to consumer credit to the AFM on behalf of NCIC in April 2011. The licence application concerned the “generation of leads for external and internal clients” by a call centre. Mr Krommenhoek was thus clearly aware of the fact that NCIC had to obtain a licence in order to be able to perform these activities.
After the AFM had put questions to NCIC as part of its assessment of the application, Mr Krommenhoek withdrew the licence application in May 2011 without stating any reason for doing so. Subsequently during its investigation, the AFM established that NCIC had continued to pursue its activities in the same manner under the de facto management of Mr Krommenhoek, up until at least 23 August 2011. By withdrawing the licence application and nonetheless continuing these intermediary activities, Mr Krommenhoek wilfully and knowingly exposed himself to a considerable risk that he was acting as an intermediary illegally.
The AFM has established that Mr Krommenhoek was aware of the fact that NCIC was acting illegally as an intermediary or sub-intermediary, that he was authorised and reasonably obliged to cease the illegal provision of intermediary or sub-intermediary services, and that he failed to take measures to this effect. These are the criteria developed by legal precedent for the assumption of de facto management with reference to an offence.
The basic sum for contravention of this section of the Wft is €2 million. In determining the amount of the fine in this case, the AFM has taken into consideration the seriousness and duration of the offence, and the culpability and financial resources of Mr Krommenhoek.
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.