On 3 February 2014, the Netherlands Authority for the Financial Markets (AFM) imposed an order on pain of a penalty payment on Mr José Luis Manso y Cabreros, who trades under the name Finade. Finade held an AFM licence until 19 November 2013. The AFM requested information, because it suspects that the business operations of Finade may no longer be ethical and/or controlled.
Finade provided brokerage services for consumers as regards loans and advised them to let Finade manage the loan that was provided, in whole or in part, as a home construction account or a bank guarantee. Mr Manso y Cabreros declared in this connection that these are consumer loans and that agreements in respect thereof were not laid down in writing. He furthermore declared that he will contact these consumers as soon as possible to make arrangements to repay the money owed to them in the very near future.
Request for information
Within the context of the ongoing investigation, the AFM requested, inter alia, a list of clients to whom Finade still owes money. The AFM also requires information about the arrangements that Finade has (since) made with these consumers about repayment of the funds.
Finade has not provided the requested information within the term set and has not provided all the information that was requested. Finade has therefore been obliged to pay the penalty payments since 18 February 2014. The AFM has still not received part of the information. The incremental penalty payments increase by €5,000 for every day Finade does not comply with the order on pain of a penalty payment, subject to a maximum of €50,000.
What is an order on pain of a penalty payment?
An order on pain of a penalty payment is an instrument that is used to order a company or person to perform or cease performing a certain act. If the order is not complied with within the set term, the company/person involved has to pay a sum of money. In this particular case, the AFM is attempting to obtain information that is needed to investigate a possible violation.
If you have any questions, please contact the AFM's Financial Markets Information Line: 0800-5400 540 (free of charge).
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