Regulatory Alerts2022-10-31
Investigation into Advertising Statements of Investment Firms
The Dutch Authority for the Financial Markets (AFM) conducted a thematic investigation into the advertising practices of investment firms offering execution-only services, identifying significant shortcomings in compliance with information standards. The regulator found that advertisements frequently contained misleading or unclear information regarding costs, transaction credits, and investment risks, thereby failing to provide balanced and accurate disclosures to consumers. The AFM is taking enforcement measures against non-compliant firms and emphasizes the need for a level playing field while continuing to monitor cost transparency and investor protection in the digital investment landscape.
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