AFM Fines

AFM issues fine for passing on inside information

The AFM issued a EUR 2,500 fine to a securities trader on 10 December 2012 for passing on inside information regarding an imminent share issue by a listed company. The recipient of the fine was employed as an equity sales trader by an investment company that was assisting the issuer. The trader shared his knowledge about the issue with a client, even though he knew that he was not allowed to do so under Dutch financial laws. The AFM ruled that the trader thus violated the statutory prohibition on disclosure. The base amount for a fine for this type of violation is EUR 2,000,000, but as the offender's financial capacity was limited, the amount was reduced to EUR 2,500.