The Dutch financial supervision authority has fined Rodeler Limited and its local unit Rodeler (NL) BV €15,000 for breaching a part of the country’s General Administrative Law Act. 24option is the trading platform operated by Rodeler.
Although a maximum penalty of €2 million can be levied for these infractions, the agencies’ limited financial resources and prior fines were cited as reasons for the small fine.
The Netherlands Authority for the Financial Markets (AFM) announced that it had initiated an inquiry against Rodeler’s local branch to see if the business requires an AFM license for its activities. It also wanted to know whether the firm was engaged in any unlawful commercial activities.
The AFM requested recordings of the communication between Rodeler NL and clients as part of the inquiry. However, the business failed to supply most of the call recordings, preventing supervision by the AFM and breaching legal responsibilities.
The AFM’s statement goes on to read, “This behavior by Rodeler NL is egregious and a penalty has therefore been imposed.”
As a result, the Cypriot parent was fined as the regulator believes that Rodeler Limited’s management overreached in its supervision of the Dutch unit.
This is not the first regulatory issue Rodeler has faced. The Cypriot regulator revoked Rodeler’s Cyprus Investment Firm license earlier this year due to the company’s voluntary renunciation.
Additionally, Rodeler was fined by the Cypriot regulatory body for alleged compliance breaches and was prohibited from doing business in numerous other countries.