The Netherlands’ Authority for the Financial Markets (AFM) has opened an investigation against Vantage Markets, a contracts for differences (CFDs) broker, and has also issued a penalty order for non-cooperation. If the broker continues to fail in providing the required information to the regulator, it will be fined €10,000 per day up to a maximum of €100,000.
Vantage Facing Scrutiny in the EU
According to the regulatory announcement, Vantage Global Limited, which operates as Vantage Markets, illegally offered investment services in the Netherlands. The platform only offers CFDs on a range of asset classes, which are considered risky for retail traders and are subject to strict regulatory oversight.
Vantage offered its services to retail investors in the Netherlands under its entity authorised in Vanuatu. Although the broker is also regulated in Australia and South Africa, none of its licences allow it to offer services in the European Union.
To operate in the EU, financial services providers need to obtain a licence in any of the member states and then passport it to other countries in the bloc.
“Vantage Markets does not have a licence to offer investment services in the Netherlands,” the Dutch regulator stated. “The AFM wants to determine whether Vantage Markets needs a licence from the AFM. In doing so, the AFM is also investigating the collaboration with Dutch intermediaries.”
Not Complying with the Regulator
The AFM further highlighted that it has repeatedly requested information from Vantage Markets, which the broker “has not (fully) provided despite repeated requests.” Thus, the agency issued a penalty payment order on 24 October 2024, requiring the broker to comply with its request for information.
Finance Magnates contacted Vantage regarding the regulatory investigation and penalty but had not received any information as of press time.
Earlier this year, the Italian regulator also added Vantage to its blacklist, but the broker then told Finance Magnates that it did not conduct business in this or any other jurisdiction where it does not possess the appropriate licences. It also called the Italian regulatory action a “misunderstanding.”
The Netherlands’ Authority for the Financial Markets (AFM) has opened an investigation against Vantage Markets, a contracts for differences (CFDs) broker, and has also issued a penalty order for non-cooperation. If the broker continues to fail in providing the required information to the regulator, it will be fined €10,000 per day up to a maximum of €100,000.
Vantage Facing Scrutiny in the EU
According to the regulatory announcement, Vantage Global Limited, which operates as Vantage Markets, illegally offered investment services in the Netherlands. The platform only offers CFDs on a range of asset classes, which are considered risky for retail traders and are subject to strict regulatory oversight.
Vantage offered its services to retail investors in the Netherlands under its entity authorised in Vanuatu. Although the broker is also regulated in Australia and South Africa, none of its licences allow it to offer services in the European Union.
To operate in the EU, financial services providers need to obtain a licence in any of the member states and then passport it to other countries in the bloc.
“Vantage Markets does not have a licence to offer investment services in the Netherlands,” the Dutch regulator stated. “The AFM wants to determine whether Vantage Markets needs a licence from the AFM. In doing so, the AFM is also investigating the collaboration with Dutch intermediaries.”
Not Complying with the Regulator
The AFM further highlighted that it has repeatedly requested information from Vantage Markets, which the broker “has not (fully) provided despite repeated requests.” Thus, the agency issued a penalty payment order on 24 October 2024, requiring the broker to comply with its request for information.
Finance Magnates contacted Vantage regarding the regulatory investigation and penalty but had not received any information as of press time.
Earlier this year, the Italian regulator also added Vantage to its blacklist, but the broker then told Finance Magnates that it did not conduct business in this or any other jurisdiction where it does not possess the appropriate licences. It also called the Italian regulatory action a “misunderstanding.”
This post is originally published on FINANCEMAGNATES.
