"Our Legal Counsel Team Is Cooperating": Vantage after Dutch Regulator's Investigation

A Vantage representative told Finance Magnates that "anyone attempting to visit the Vantage website from the Netherlands would be immediately prompted that 'Vantage and its affiliated entities do not operate in your home jurisdiction'." The statement came as the Netherlands’ Authority for the Financial Markets (AFM) has opened an investigation against Vantage Markets, a contracts for differences (CFDs) broker, and has also issued a penalty order for non-cooperation. If the broker continues to fail in providing the required information to the regulator, it will be fined €10,000 per day up to a maximum of €100,000.

Vantage Facing Scrutiny in the EU

According to the regulatory announcement, Vantage Global Limited, which operates as Vantage Markets, illegally offered investment services in the Netherlands. The platform only offers CFDs on a range of asset classes, which are considered risky for retail traders and are subject to strict regulatory oversight.

“Vantage Markets does not have a licence to offer investment services in the Netherlands,” the Dutch regulator stated. “The AFM wants to determine whether Vantage Markets needs a licence from the AFM. In doing so, the AFM is also investigating the collaboration with Dutch intermediaries.”

Vantage offered its services to retail investors in the Netherlands under its entity authorised in Vanuatu. Although the broker is also regulated in Australia and South Africa, none of its licences allow it to offer services in the European Union.

To operate in the EU, financial services providers need to obtain a licence in any of the member states and then passport it to other countries in the bloc.

However, the brokerage representative added: "Vantage employees do not solicit business in areas where we are not authorized to do so; including but not limited to the Netherlands. This is very important to us and strictly enforced by all employees."

Not Complying with the Regulator

The AFM further highlighted that it has repeatedly requested information from Vantage Markets, which the broker “has not (fully) provided despite repeated requests.” Thus, the agency issued a penalty payment order on 24 October 2024, requiring the broker to comply with its request for information.

"We operate in full compliance with our governing bodies ASIC, FSCA and VFSC," the representative said, adding that: "Our legal counsel team is cooperating fully with the AFM in investigating this matter, it is of great importance and concern to Vantage."

Further, the broker highlighted that it is "working closely with the authorities in the countries we operate in and clarifying any misunderstandings in the countries where we do not have a presence.

Earlier this year, the Italian regulator also added Vantage to its blacklist, but the broker then told Finance Magnates that it did not conduct business in this or any other jurisdiction where it does not possess the appropriate licences. It also called the Italian regulatory action a “misunderstanding.”