AFM imposes an order for incremental penalty payments on financial adviser Storms

^{(1) The AFM has declared the objections partly as inadmissible and further as unfounded while supplementing its reasons. The order for incremental penalty payments has become final as an appeal against the decision on the objection was not lodged.} 

The AFM requested Storms to provide information in order to be able to assess whether he is actually breaking the law when doing so. The AFM ordered him by means of this measure to provide this information as yet, because Storms failed to comply with the AFM's requests for information.

No licence

The AFM has information from which it is evident that Storms visits consumers at home and presents himself as an intermediary that works closely together with a licensee so that he does not have to hold an AFM licence himself. It is not allowed to issue advice and provide intermediary services concerning financial products without an AFM licence. The AFM requested Storms to provide information in this regard but he has not yet provided all information that was requested. That is why has been obliged to pay a penalty since 10 May 2016. The penalty increases by €5,000 for every day he fails to comply with the order for incremental penalty payments that was imposed. The maximum of €50,000 has since been reached. Storms is obliged to pay this amount to the AFM.

What is an order for incremental penalty payments?

An order for incremental penalty payments can be 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 you have any questions concerning this announcement or any other matter, you can contact the Financial Markets Information Line on: 0800-5400 540 (free of charge).