AFM imposes an order for incremental penalty payments on Cage Capital B.V.



On 5 November 2014, the Netherlands Authority for the Financial Markets (AFM) imposed an order for incremental penalty payments on Cage Capital B.V. This company does not comply with the AFM's requests for information. The supervisor requires the requested information to be able to determine whether the law is being violated.

Provide investors with essential information

Cage Capital has offered consumers the opportunity to invest in RMB Security Investment IX bonds. According to the offer documentation, the funds were to be used to strengthen the equity of HKB Bank GmbH of Germany.

The Consumer Protection (Enforcement) Act obliges Cage Capital to provide its investors, among other parties, with essential information. The AFM requested information, inter alia, concerning the ledger accounts from 1 January 2014 up to and including 23 May 2014, in order to be able to determine whether the company complies with this obligation. The AFM is able to assess on the basis of these ledger accounts, among other things, whether the money paid by the investors is actually being used in the manner indicated in the bonds' information memorandum.

Cage Capital has not provided the requested information within the term(s) set. The AFM then imposed an order for incremental penalty payments on 5 November 2014. Cage Capital provided the requested information to the AFM as yet on 14 November 2014. As this occurred within the term set in the order for incremental penalty payments, Cage Capital is not required to pay a sum of money (penalty).

What is an order for incremental penalty payments?

An order for incremental penalty payments is an instrument that is used to order (instruct) a company or person to perform or cease performing a certain act. If the order is not complied with within the term set, the company/person involved has to pay a sum of money. If this is the case, the AFM attempts to obtain information that is needed to perform an investigation into a possible violation.

If you have questions, 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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