The Netherlands’ Authority for the Monetary Markets (AFM) has opened an investigation in opposition to Vantage Markets, a contracts for variations (CFDs) dealer, and has additionally issued a penalty order for non-cooperation. If the dealer continues to fail in offering the required info to the regulator, will probably be fined €10,000 per day as much as a most of €100,000.
Vantage Going through Scrutiny within the EU
In response to the regulatory announcement, Vantage International Restricted, which operates as Vantage Markets, illegally provided funding companies within the Netherlands. The platform solely gives CFDs on a spread of asset lessons, that are thought of dangerous for retail merchants and are topic to strict regulatory oversight.
Vantage provided its companies to retail traders within the Netherlands beneath its entity authorised in Vanuatu. Though the dealer can also be regulated in Australia and South Africa, none of its licences enable it to supply companies within the European Union.
To function within the EU, monetary companies suppliers have to receive a licence in any of the member states after which passport it to different nations within the bloc.
“Vantage Markets doesn’t have a licence to supply funding companies in the Netherlands,” the Dutch regulator said. “The AFM desires to find out whether or not Vantage Markets wants a licence from the AFM. In doing so, the AFM can also be investigating the collaboration with Dutch intermediaries.”
Not Complying with the Regulator
The AFM additional highlighted that it has repeatedly requested info from Vantage Markets, which the dealer “has not (absolutely) supplied regardless of repeated requests.” Thus, the company issued a penalty fee order on 24 October 2024, requiring the dealer to adjust to its request for info.
Finance Magnates contacted Vantage relating to the regulatory investigation and penalty however had not obtained any info as of press time.
Earlier this 12 months, the Italian regulator additionally added Vantage to its blacklist, however the dealer then advised Finance Magnates that it didn’t conduct enterprise on this or another jurisdiction the place it doesn’t possess the suitable licences. It additionally known as the Italian regulatory motion a “misunderstanding.”
This text was written by Arnab Shome at www.financemagnates.com.
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