AFM imposes an administrative fine for failing to notify policy suspicion



On 04 June 2010, the Netherlands Authority for the Financial Markets (AFM) imposed an administrative fine of €1,000 on a financial service provider, hereinafter 'the Offender'. The Offender has been active as an advisor and intermediary in various financial products since 2008. The administrative fine was imposed because the Offender failed to report to the AFM that one of its policymakers was heard by the police as a suspect.

A financial service provider is obliged to notify the AFM without delay if a change occurs in the data that was provided for the assessment the properness of the policymakers (Section 102, first and second subsection, Market Conduct Supervision (Financial Institutions) Decree). It is important that the supervisor is aware of such changes, because the trustworthiness of policymakers must be beyond doubt. That is ultimately in the interest of consumers.

At the time of granting of its licence, the Offender received a warning for having provided incomplete data to the AFM. One of its policymakers was subsequently heard by the police as a suspect on 12 February 2008, 13 February 2008, 14 February 2008 and 29 May 2008, in a case from 2004-2005. The Offender failed to notify the AFM of this suspicion immediately. The Public Prosecution Service dismissed the case against the Offender's relevant policymaker in 2010.

The Trade and Industry Appeals Tribunal (CBb) ruled by decision dated 25 February 2014 that the administrative fine imposed on the Offender for failing to notify the suspicion is lawful. The decision of the CBb means that the fine has become final.

If you have questions or complaints, please contact the AFM's Financial Markets Information Line: 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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