The Netherlands’ Authority for the Financial Markets (AFM) has launched an investigation into Vantage Markets, a contracts for difference (CFD) broker, over allegations of operating without a license in the country. Alongside the investigation, the AFM issued a penalty order, threatening fines of €10,000 per day, up to a maximum of €100,000, for non compliance if Vantage fails to provide the requested information.
Vantage Under Regulatory Pressure in Europe
According to the AFM, Vantage Global Limited, operating as Vantage Markets, allegedly offered CFD trading services to Dutch retail investors without the necessary regulatory approval. CFDs are considered high risk products, especially for retail investors, and are heavily regulated within the EU.
Vantage reportedly provided these services under its Vanuatu license, which does not permit operations within the European Union. While Vantage holds regulatory licenses in Australia and South Africa, neither of these allows it to conduct business in the EU.
To legally operate within the EU, financial service providers must obtain a license from one EU member state and then passport that authorization across the bloc. The AFM noted, “Vantage Markets does not have a license to offer investment services in the Netherlands,” and stated that it is also investigating Vantage’s collaborations with Dutch intermediaries.
Non-Cooperation with Regulatory Requests
The AFM highlighted Vantage’s repeated failure to supply requested information despite multiple attempts by the regulator. This led the AFM to issue a penalty order on October 24, 2024, compelling Vantage to respond.
While Finance Magnates sought comments from Vantage on the ongoing investigation and the penalty order, no response had been received at the time of reporting.
This investigation follows a similar incident earlier in the year when Italy’s financial regulator blacklisted Vantage. Vantage later stated that it did not operate in Italy or any other jurisdiction where it lacked the required licenses, describing the Italian regulatory action as a “misunderstanding.”
