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AFM imposes a fine on ABN AMRO Bank N.V. and ABN AMRO Clearing Bank N.V. for failing to notify transactions in time

Measure

Fine

On 6 July 2017, the Dutch Authority for the Financial Markets (AFM) imposed 2 administrative fines of €400,000 and €500,000 on ABN AMRO Bank N.V. (ABN AMRO) and ABN AMRO Clearing Bank N.V. (ABN AMRO Clearing), respectively. The fines were imposed because the banks failed to notify transactions to the AFM in time. This constitutes a violation of Section 4:90e(3) of the Financial Supervision Act.

This Section obliges investment firms that perform transactions in listed financial instruments to notify the AFM of the details of these transactions. This should be done as quickly as possible, but at the latest at the end of the next working day. The AFM uses the transactions that have been notified to identify market abuse and thus promote the fair and efficient operation of the capital markets, so that investors can have confidence in these markets.

Violations

In the period from 2 February 2010 up to and including 1 July 2015, ABN AMRO failed to notify the AFM in time of the details of 86,796 transactions carried out via various ABN AMRO departments and via various trading platforms. The AFM attributes this violation to ABN AMRO as from 1 January 2013. At that time, ABN AMRO should have had its transaction reporting in order with the aid of the instructions issued by the AFM during an audit it carried out at the bank at the end of 2010. The AFM concluded in these instructions that ABN AMRO lacked an overall summary of the reports from the various departments. The AFM urgently advised ABN AMRO to create a better overview of its transaction reporting. At the end of 2013 ABN AMRO decided to perform an internal review, which identified the entire reporting process in 2014. The results of this review, including the discovery of the violation, formed the reason for making further improvements.

During the period from 13 September 2014 up to and including 11 April 2016, ABN AMRO Clearing failed to notify the AFM in time concerning 11,911 transactions, which were mainly conducted on the Stuttgart Exchange. ABN AMRO Clearing previously received a constructive letter on compliance with standards in connection with late reporting of other transactions.

Fine amounts

The basic fine for violation of the obligation to report transactions is €500,000. The AFM reduced the fine for ABN AMRO to €400,000, because ABN AMRO discovered the violation itself and notified it to the AFM. Moreover, given the improvements ABN AMRO implemented in its transaction reporting a full report should be guaranteed in the future. The AFM considers a fine in accordance with the basic amount appropriate for ABN AMRO Clearing.

ABN AMRO and ABN AMRO Clearing have not lodged an objection to the decision to impose a fine, which have therefore become final.

The full decisions can be downloaded in PDF format next to this text.

If you have questions or complaints, you can contact the AFM's Financial Markets Information Line: 0800-5400 540 (free of charge).

Journalists may contact AFM spokesperson Marieke Ziedses des Plantes at 020 - 797 2039 or Marieke.Ziedses.des.Plantes@afm.nl.

 
States of the legal proceedings
Fine imposed Objection Appeal Further appeal
Submitted Decision rendered Submitted Decision rendered Submitted Decision rendered
06-07-2017  none

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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