24option Operator To Be Fined €15K in the Netherlands
The Dutch financial supervisory authority has imposed a hefty €15K fine on Rodeler Limited and its local unit for violating a section of the country’s General Administrative Law Act.
Rodeler’s 24Option CFD trading platform is one of the most popular in Europe. They offered high-quality services and are committed to providing their customers with great value for money, which has made them so popular among traders from all over that region. They also boosted their portfolio with thousands of clients and strong regulations by several governments that led them to move their operations overseas.
Though maximum penalties approach €2 million, Weak fingers were behind the low monetary value in this instance because of limited financial strength as well previous fines incurred by the company which led them towards penance payments rather than otherwise severe consequences despite being aware that such rules existed.
The Netherlands Authority for the Financial Markets (AFM) also announced that it had launched an investigation against Rodeler to determine if they require a license from AFM. The Authority for the Financial Markets (AFM) also wanted to make sure that the company is not engaging in any unfair commercial practices.
As part of their inquiry, the Financial Markets (AFM) requested recordings from phone calls between customers and employees but many call records were never provided making it difficult to fully supervise the AFM’s actions as well as obligations under the law.
AFM notes, “This behavior by Rodeler NL is serious and a fine is, therefore, imposed,” (translated from Dutch).
The Cypriot parent company was heavily fined for its leadership’s failures.
Regulatory Troubles
Rodeler has been subject to a number of regulatory actions already, and it doesn’t look like that will be changing any time soon as their latest problem could have long-lasting effects for them going forward.
The Cypriot regulator recently withdrew Rodeler’s Cyprus Investment Firm license upon its voluntary renunciation by the company.
Rodeler’s business was suffering from costly fines and bans by the Cypriot regulator. The company faced hefty fees for alleged compliance breaches in a number of other countries that they had been operating in before being banned outrightly.
