Dutch Regulator Fines Neo-broker BUX €1.6 Million

The Netherlands Authority for the Financial Markets (AFM) has levied a €1.6 million fine against the European neo-broker BUX for breaching regulations related to inducement bans. The AFM determined that BUX's practice of compensating existing customers, comparison websites, and "finfluencers" for referring new clients was in violation of these rules.

Yorick Naeff, CEO of BUX, addressed the fine, stating, "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." Naeff also noted that BUX had ceased these referral payments in April 2023.

BUX maintains that its customers were not financially disadvantaged by these referral fees and emphasizes its commitment to transparency and customer interests. It is worth noting that ABN AMRO's acquisition of BUX, announced in December 2023, occurred while discussions between BUX and the AFM regarding these violations were ongoing.

In other developments, BUX has recently become the first pan-European partner to adopt PrimaryBid's capital markets platform, allowing retail investors in Belgium and the Netherlands to access IPOs and regulated fundraises. Concurrently, BUX Financial Services, the UK arm of the company, has been acquired by Asseta Holding, following BUX's earlier announcement of its intention to sell the UK business and the cessation of operations for BUX Markets.