The AFM imposes an order for incremental penalty payments on Jatropha Investment Fund for failing to comply with requests for information


On 19 June 2012, the Netherlands Authority for the Financial Markets (AFM) imposed an order for incremental penalty payments on A. Jansen of Ede, who traded under the name Jatropha Investment Fund and who currently uses the name Jatropha Development House Ltd. He fails to comply in full with the AFM's requests for information. The AFM requires the information in order to determine whether he is breaking the law.

The suspicion exists that Mr A. Jansen has offered or continues to offer investments and/or units in a collective investment company to consumers, without holding the required AFM licence. Jatropha Development House indicates that it is involved in the development of a plantation for nuts destined for the nut paste sector. It is prohibited by law to offer investments and/or units in a collective investment scheme in the Netherlands without holding a licence granted for that purpose by the AFM.

It is important that financial service providers hold an AFM licence. A licence offers additional protection to consumers. Before the AFM grants a licence, it first checks, inter alia, whether a financial service provider satisfies the requirements of reliability, expertise and integrity. Moreover, a service provider that holds a licence has to comply with the so-called continuous rules of conduct. These concern, inter alia, conscientious provision of services to consumers.

What is an order for incremental penalty payments?

An order for incremental penalty payments is the AFM's way of attempting to end a violation and/or prevent further violation or a repeat of a violation. The AFM instructs (orders) a company or person to do or cease doing certain acts. If the order is not complied with within a specific term, the company/person is obliged to pay a sum of money. In the present case, the AFM is attempting to obtain information that is required to perform an investigation into a possible violation.

Mr A. Jansen has not provided the requested information within the term set. He has consequently been obliged to pay incremental penalty payments as of 4 July 2012. The AFM is yet to receive the information. The incremental penalty payments will increase by €4,000 for every day Mr A. Jansen fails to comply with the order, subject to maximum of €80,000. If you have any questions or comments you can also contact the Financial Markets Information Line on: 0800-5400 540 (free of charge).

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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