The AFM supervisor imposed periodic penalty payments of EUR 300,000 on stock exchange trader DeGiro, because this involved conflicts of interest and too high risks for customers. The financial supervisor reports this.
Individuals can invest money on stock exchanges through DeGiro. According to the AFM, the company has not complied with the rules in the past. "The customer interest was not central to business operations and legal violations were not counteracted," said the financial regulator.
For example, it turned out that private clients would bear the risks of a large investor, HiQ Invest. This large investor partly had the same directors and shareholders as DeGiro, according to an investigation reported by FD .
The AFM already imposed the periodic penalty payments in 2018, but only announced this publicly this week. In the meantime, DeGiro has partly improved its operations, which meant that the company did not have to pay part of the penalty payments.
Another part of the periodic penalty payments, with a total amount of 300,000 euros, remained intact. DeGiro then came up against it in court. He ruled last week that the trader did indeed not handle the customers correctly. The investment company must therefore still pay the amount.
DeGiro is no longer independent, but has become part of the German investor platform Flatex.