The Authority for the Financial Markets (AFM) in the Netherlands, announced this Wednesday that it has fined FPlus Trading Ltd. for wrongfully claiming that it is authorized by the Dutch regulator on its website.
Via its website, https://fplus.ai, FPlus Trading falsely states that it trades with an AFM license, the statement said. However, as highlighted by the watchdog, this is untrue and is, therefore, a breach of the Consumer Protection (Enforcement) Act.
Furthermore, the entity also lists a specific license number, which has been copied from a legitimate and registered firm with the AFM, further misleading residents of the Netherlands.
As a result, on February 12 of this year, the Dutch agency imposed an order for incremental penalty payments on the company. This is an instrument which is used to order a company or person to cease performing a certain act. If the order is not complied with in a certain amount of days, a specified amount of money must be paid.
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According to the statement, FPlus Trading, which claims to be a foreign exchange (forex), cryptocurrency and commodity trading platform, had five days to comply with the order. However, it did not make the appropriate changes in time.
As outlined by the regulator: “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.”
FPlus Trading Owes AFM €50,000
Taking a look at the company’s website, it still falsely claims to be regulated by the AFM. Therefore, as of today, the entity owes the AFM €50,000, assuming weekends are included.
The AFM is the regulatory authority for financial services for the Netherlands. The role of the regulator is similar to that of the Securities and Exchange Commission (SEC) in the US or the Financial Conduct Authority (FCA) in the UK.