Dutch regulator fines FPlus Trading for misleading claims about license
The Dutch Authority for the Financial Markets (AFM) imposed an order for incremental penalty payments on FPlus Trading Ltd. (FPlus Trading). The order for incremental penalty payments was imposed because on its website (https://fplus.ai) FPlus Trading wrongfully states that it trades with an AFM license. This means that FPlus Trading misleads consumers and breaches the Consumer Protection (Enforcement) Act.
The Netherlands Authority for the Financial Markets is the body responsible for regulating behavior on the financial markets in the Netherlands. This includes regulating the behavior of all parties involved with the savings, loans, investment and insurance markets. It includes regulating all organizations that provide financial products and those that issue products, including stock exchanges.
According to its website, FPlus Trading is a trading platform where consumers can trade in currencies (including crypto currencies) commodities, shares and indices. The company says that it holds an AFM license for this purpose. However, FPlus Trading abuses the trade name and license number of an AFM licensee and thus misleads consumers. The AFM did not grant FPlus Trading a license.
By means of the order for incremental penalty payments, the AFM obliges FPlus Trading to cease these acts and provide consumers with information regarding FPlus Trading that is correct and not misleading. FPlus Trading will be obliged to pay a penalty if it fails to comply with the order within five working days. The penalty amounts to €5,000 for each calendar day FPlus Trading fails to comply, subject to a maximum of €50,000. FPlus Trading failed to comply with the order (in time) and must, therefore, pay a penalty.
The regulator explains that an order for incremental penalty payments is an instrument that is used to instruct or order a company or person to perform or cease performing a certain act. A specified amount of money must be paid if the order is not complied with within the term set.