AFM watchdog fines for ‘misleading commercial practices’ | Financial

It is the first time that a fine has been handed out to such a provider, after years of research. A total of € 375,000 was imposed in fines.

Rodeler’s platform, located in Cyprus, which was active in the Netherlands from 2016 and 2018, sold so-called here contracts for difference (CFDs), financial products speculating on price movements of, for example, stock exchanges, gold or the dollar.

In nearly 90% of the cases, these turned out badly for investors, European research has shown earlier. The AFM accuses the providers of not properly informing investors about this risk in advance.

Until now, proceedings against such producers have been difficult. These fines handed out stem have just been published but steps out of last December. They are for Rodeler BV, Rodeler Ltd. respectively. and A. Shkuri, the managing director, reports the AFM.

From the ltd. The Netherlands was managed and involved with it, the AFM finds.

The company did not respond to requests for comment.


Until the beginning of 2018, Rodeler Ltd and its subsidiary Rodeler NL with a license in Cyprus and a European passport in the Netherlands have offered CFDs to private investors, according to the AFM. According to the watchdog, this happened without required permits. Moreover, according to the AFM, this concerned ‘aggressive and misleading commercial practices’.

Moreover, Rodeler NL employees continued to “persistently and unwantedly pursue customers by telephone”, according to the AFM.

Investors on were so deviously persuaded to speculate as much as possible with high-risk CFDs on currency pairs, according to the regulator. “Investors were deliberately misled by Rodeler NL about the risks,” says the AFM.

The regulator has been warning against dubious providers of CFDs for some time. Customers often lost their entire investment, from tens of thousands to sometimes hundreds of thousands of euros, according to the AFM.

CFDs are still widely used in professional trading. Due to the large number of malpractices among private investors, in which leverage is invested and the risks thus multiplied, the AFM, after the European regulator ESMA, has restricted the sale of the products to private investors.

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