AFM issues fine for passing on inside information
The AFM issued a EUR 2,500 fine to a securities trader on 10 December 2012 for passing on inside information regarding an imminent share issue by a listed company. The recipient of the fine was employed as an equity sales trader by an investment company that was assisting the issuer. The trader shared his knowledge about the issue with a client, even though he knew that he was not allowed to do so under Dutch financial laws. The AFM ruled that the trader thus violated the statutory prohibition on disclosure. The base amount for a fine for this type of violation is EUR 2,000,000, but as the offender's financial capacity was limited, the amount was reduced to EUR 2,500.
AFM fines AFAB for inadequate safeguarding quality of financial services provision
AFAB Holding N.V. ("AFAB") was fined EUR 6,000 by the AFM on 5 August 2010 because employees of AFAB Geldservice B.V. ("AFAB Geldservice") had failed to provide adequate professional services in concluding consumer and mortgage credit agreements. According to the AFM, AFAB failed to demonstrate that enough managers holding relevant qualifications were available to ensure quality of service. AFAB also failed to show that AFAB's and AFAB Geldservice's operations were designed to safeguard the professional competence of their financial service provision to consumers. The District Court reduced the fine to EUR 5,400 on 1 November 2012.
AFM fines Goudse Levensverzekeringen N.V.
The AFM fined Goudse Levensverzekeringen N.V. ("Goudse") EUR 200,000 on 27 December 2012. The reasons for this fine were that, according to the AFM, Goudse had supplied documents to customers omitting important information such as the right to or option of value transfer. This information should be provided to a departing member of a pension scheme according to the AFM. As a result of the missing information, the AFM was of the opinion that relevant members may have been unable to make sound choices about their financial situation
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