Operators of 24option.com get small fine in the Netherlands
The Authority for the Financial Markets (AFM) of the Netherlands today confirmed the imposition of a fine of EUR 15,000 on Rodeler (NL) B.V. and Rodeler Limited, also trading as 24Option.com. The fines were imposed for violations of Section 5:20 of the General Administrative Law Act (Awb).
Pursuant to Section 5:20 Awb, a party is obliged to cooperate with a regulator. Rodeler NL and Rodeler Ltd have not complied with this obligation.
Rodeler NL and Rodeler Ltd operated online investment platform 24option.com, through which private investors could trade contracts for difference (CFDs). The AFM has launched an investigation to determine whether Rodeler NL required a license from the AFM for its actions. The AFM also wanted to determine whether Rodeler NL engaged in unfair commercial practices.
To this end, during an investigation at Rodeler NL’s office, the AFM requested, among other things, recordings of telephone conversations between Rodeler NL and customers. Because Rodeler NL did not provide the call recordings to the AFM, the AFM has imposed a penalty on Rodeler NL. Rodeler NL also subsequently failed to provide the AFM with a large part of the call recordings. Rodeler NL thereby hindered supervision by the AFM and violated the obligation to cooperate under Article 5:20 Awb.
The regulator explains that violations of Article 5:20 Awb could trigger a maximum fine of €2 million. In this case, the fines are relatively low, at €15,000. When determining the fines, the AFM has taken into account the limited financial strength of both companies, as well as that the brokers had previously been fined.