The Netherlands Authority for the Financial Markets (AFM) recently imposed a fine of €1.6 million on a neobroker due to violations of the inducements ban. The penalty stems from the broker’s practice of paying existing clients, comparison websites, and influencers, known as “finfluencers,” for bringing in new customers. According to the AFM, these referral fees breached regulations that aim to maintain fair practices in the financial sector.
In response to the fines, the broker emphasized its commitment to transparency and customer interests, asserting that the referral fees did not disadvantage its users. The broker claims that the compensation for these referral activities was covered entirely from its own funds and never at the expense of clients.
Since April 2023, the broker has ceased the practice of offering referral fees. The organization emphasizes that its primary focus is providing an accessible and user-friendly investment platform and enhancing retail investor engagement in Europe.
In mid-2024, the broker was acquired by a prominent Dutch banking institution, which was aware of the discussions related to the regulatory violations during the acquisition process.
The broker’s mission centers around making investing easier, more affordable, and more appealing to a broader audience. Its strategy includes creating a seamless user experience that encourages more individuals to participate in investment activities across Europe.