The Netherlands Authority for the Financial Markets (AFM) warns against LW Holding's commercial practices. Pursuant to the information received by the AFM from LW Holding and its own investigation, the AFM has a reasonable suspicion that LW Holding failed to provide bondholders with all essential information concerning the manner in which the deposited funds are spent. The AFM has not yet established that a violation has taken place.
Manner in which the funds are spent
LW Holding offers consumers the opportunity to invest in solar energy parks in Germany by means of bonds. The AFM suspects on the basis of its investigation that the funds deposited are not spent in the manner described by LW Holding in its information memoranda and its newsletters. The reason is that LW Holding holds considerable claims against its director and entities and persons affiliated with its director. LW Holding loaned more than half of the funds that were invested to its director and to entities and persons affiliated with him. It is not clear to the AFM to what extent these claims are related to the investments in solar energy parks.
Bondholders run the risk that LW Holding will no longer be able to comply with the mandatory interest and repayment obligations if the claims cannot be paid back to LW Holding. This means that bondholders run the risk of sustaining a loss and the amounts of the losses can be considerable if things go wrong.
Consumers who have questions can contact the AFM's Financial Markets Information Line at telephone number 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.