The Netherlands Authority for the Financial Markets (AFM)
has fined the European neo-broker BUX €1,600,000 for violating the inducements
ban. The fine stems from BUX’s practice of paying compensations to existing
customers, comparison websites, and finfluencers for introducing new customers.
According to the AFM, this method of paying referral fees violated the ban on
inducements.
AFM Fines BUX, CEO Emphasizes Transparency
“At BUX, transparency and the interests of our
customers always come first. 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,” Yorick Naeff,
CEO of BUX, commented.
In April 2023, BUX ceased paying these referral fees. The
company asserts that it values the interests of its customers and that neither
existing nor new customers were disadvantaged by these payments .
In December 2023, ABN AMRO announced its acquisition of BUX.
The bank was aware of ongoing discussions between BUX and the AFM regarding the
violations at the time of the acquisition .
Recently, BUX became the first pan-European partner to adopt
PrimaryBid’s capital markets platform. This move allows retail investors in
Belgium and the Netherlands to access initial public offerings (IPOs) and
regulated fundraises, opportunities previously available only to institutional
investors.
Asseta Acquires BUX UK After ABN Deal
Meanwhile, BUX Financial Services, the UK branch of
Netherlands-based BUX, has
been acquired by Asseta Holding, the parent company of UAE-based investment
firm APM Capital. The deal follows ABN AMRO’s acquisition of BUX’s Netherlands
operations, which operate as a neo-broker.
The UK unit, regulated by the Financial Conduct Authority
(FCA), provided contracts for differences (CFDs) and financial spread betting
services through the BUX Markets brand.
The acquisition was anticipated, as BUX had announced plans
to sell the business last year. Prior to the sale, BUX Markets had ceased
operations to “re-evaluate its product offering.” Naeff, CEO of BUX
Holding, confirmed the divestment of remaining regulated subsidiaries, leaving
only the Cyprus-based entity.
BUX Europe Limited, the Cypriot arm, closed its
Stryk-branded CFDs platform and transferred accounts to AvaTrade, though it
still holds a Cyprus Investment Firm (CIF) license.
The Netherlands Authority for the Financial Markets (AFM)
has fined the European neo-broker BUX €1,600,000 for violating the inducements
ban. The fine stems from BUX’s practice of paying compensations to existing
customers, comparison websites, and finfluencers for introducing new customers.
According to the AFM, this method of paying referral fees violated the ban on
inducements.
AFM Fines BUX, CEO Emphasizes Transparency
“At BUX, transparency and the interests of our
customers always come first. 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,” Yorick Naeff,
CEO of BUX, commented.
In April 2023, BUX ceased paying these referral fees. The
company asserts that it values the interests of its customers and that neither
existing nor new customers were disadvantaged by these payments .
In December 2023, ABN AMRO announced its acquisition of BUX.
The bank was aware of ongoing discussions between BUX and the AFM regarding the
violations at the time of the acquisition .
Recently, BUX became the first pan-European partner to adopt
PrimaryBid’s capital markets platform. This move allows retail investors in
Belgium and the Netherlands to access initial public offerings (IPOs) and
regulated fundraises, opportunities previously available only to institutional
investors.
Asseta Acquires BUX UK After ABN Deal
Meanwhile, BUX Financial Services, the UK branch of
Netherlands-based BUX, has
been acquired by Asseta Holding, the parent company of UAE-based investment
firm APM Capital. The deal follows ABN AMRO’s acquisition of BUX’s Netherlands
operations, which operate as a neo-broker.
The UK unit, regulated by the Financial Conduct Authority
(FCA), provided contracts for differences (CFDs) and financial spread betting
services through the BUX Markets brand.
The acquisition was anticipated, as BUX had announced plans
to sell the business last year. Prior to the sale, BUX Markets had ceased
operations to “re-evaluate its product offering.” Naeff, CEO of BUX
Holding, confirmed the divestment of remaining regulated subsidiaries, leaving
only the Cyprus-based entity.
BUX Europe Limited, the Cypriot arm, closed its
Stryk-branded CFDs platform and transferred accounts to AvaTrade, though it
still holds a Cyprus Investment Firm (CIF) license.
This post is originally published on FINANCEMAGNATES.
