AFM imposes an administrative fine on N.C.I.C. B.V. for providing credit without a licence


Update 10 October 2012: The decision of the AFM has become irreversible by law. There is no possibility of filing an objection or appeal against the decision.

The Authority for the Financial Markets (the AFM) has imposed an administrative fine of €60,000 on N.C.I.C. B.V. (NCIC), established in Enschede, on 11 May 2012. The fine was imposed because NCIC illegally provided intermediary or sub-intermediary services with regard to consumer credit without obtaining a licence from the AFM.

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 performed intermediary activities designed to bring about the conclusion of credit agreements without a licence to do so. This is a contravention of Section 2:80 (1) of the Financial Supervision Act (Wft). NCIC ceased its activities as an intermediary or sub-intermediary as of 23 August 2011. 

It is important that financial services providers are licensed by the AFM, as this provides protection for consumers. Before the AFM grants a licence, it carries out tests to establish (among other things) that a financial services provider meets the requirements of properness, fitness and integrity. Furthermore, a licensed services provider must continue to observe the rules of conduct going forward, including the exercise of due care in the provision of services to consumers.

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 NCIC.

The AFM’s decision may be tested in the courts by the interested parties.

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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