The Dutch Authority for the Financial Markets (AFM) has imposed an administrative fine on Rodeler (NL) B.V. and Rodeler Limited, trading under the name 24Option.com.
According to the Dutch regulator, the €15,000 monetary penalty resulted from Rodeler NL and Rodeler Ltd failing to provide cooperation to information request.
The two companies operated the online investment platform 24option.com. The AFM was investigating whether Rodeler NL required a licence from the AFM for its operations and whether the firm was engaging in unfair trading practices.
Violations
In its investigation, AFM requested telephone conversations between Rodeler NL and customers which the company failed to provide. The financial markets regulator stressed the seriousness of the violation as it resulted in hindrance of supervision.
The administrative five was also imposed on Rodeler Ltd as the AFM found the firm directed Rodeler NL in the violation.
The AFM highlighted that such violations can result in a fine of up to €2 million. However, in its decision to impose a €15,000 fine, AFM took into consideration the limited financial strength of both companies and previous fines the companies received further weakening their assets.
Other regulators
Earlier this year, the Cyprus Securities and Exchange Commission (CySEC) withdrew the Cyprus Investment Firm (CIF) license of Rodeler Ltd after the company settled a €280,000 fine for “possible” compliance issues.
Rodeler was also banned in the UK by the Financial Conduct Authority in June 2020 for using fake endorsements from celebrities on social media and webpages to attract consumers.
The French regulator AMF also banned Rodeler Limited from providing services in France back in 2016. AMF later waiving the prohibition against 24Option in 2017 as the company had taken “measures… to remedy the situation”.
