BUX, a mobile trading platform owned by ABN Amro, has been fined €1,600,000 by the Netherlands Authority for the Financial Markets (AFM) for violating a ban on inducements.
A ban on inducements applies in the Netherlands for firms providing investment services to retail investors. This means that investment firms may not receive any monetary or non-monetary inducements in relation to the provision of investment services.
In the past, BUX said it has paid compensation to finfluencers, existing customers and comparison websites for introducing new customers.
The AFM believes that this was done in a manner which violated the inducements ban.
BUX said that it stopped paying referral fees in April 2023, adding that existing and new customers have never been at a disadvantage due to the referral fees.
ABN Amro announced the acquisition of BUX in December 2023.
The bank was aware of the discussions between BUX and the AFM about the observed violations at the time of the acquisition.
“At BUX, transparency and the interests of our customers always come first,” said Yorick Naeff, chief executive of BUX. “While we respect the AFM's position, we want to emphasise that the referral fees we have paid in the past came out of our own pocket and have never been at the expense of our customers.
“Our focus remains on building an accessible and intuitive investment platform, as we continue striving to increase retail participation in Europe."
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