The Dutch Authority for the Financial Markets imposed an administrative fine on flatexDEGIRO Bank AG for a breach of the transaction reporting obligation committed in 2019 by DeGiro B.V., which flatexDEGIRO acquired in 2021. The infringement concerned a five-week period in which DeGiro used an incorrect reporting format, preventing the AFM from viewing more than two million transactions for its market abuse supervision. For transaction reporting breaches, the AFM applied a base fine of EUR 500,000 and doubled it to EUR 1,000,000 due to recidivism, referencing an earlier 2017 fine on DeGiro for failing to report transactions. Taking account of DeGiro’s constructive approach and remedial measures, the AFM reduced the fine by 30% to EUR 700,000 and later dismissed flatexDEGIRO’s objection (with amended reasoning), after which flatexDEGIRO appealed. The District Court of Rotterdam upheld the AFM’s power to fine and the recidivism-based doubling, but reduced the amount to EUR 100,000 on proportionality grounds and then to EUR 85,000 due to a delay the court attributed to itself; the AFM decision can no longer be brought before the courts.
Dutch Authority for the Financial Markets 2025-01-13
Dutch Authority for the Financial Markets fine on flatexDEGIRO for transaction reporting breach cut to EUR 85,000 by Rotterdam court
The Dutch Authority for the Financial Markets fined flatexDEGIRO Bank AG EUR 85,000 for a 2019 transaction reporting breach by DeGiro B.V., acquired by flatexDEGIRO in 2021. The initial fine of EUR 1,000,000 was reduced by the District Court of Rotterdam on proportionality grounds and further due to court-related delays. The AFM's decision is now final and cannot be appealed.