Dutch AFM Warns Against Monex BMO Securities

The Dutch financial watchdog Autoriteit Financiële Markten (AFM) issued a statement today warning consumers not to respond to offers from retail broker, Monex BMO Securities.

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Monex BMO Securities operates online via the url: www.monexfinancial.com and describes itself as an independent investment and wealth management leader, providing bespoke solutions for its clients. The brokerage’s Retail and Corporate Trading division is headquartered at Jinbocho Mitsui Bldg, 13th Floor, 105, Tokyo, Japan.

Boiler Room Scam

According to the AFM, Monex BMO Securities is a suspected boiler room and has approached people speculatively, without being asked to offer them investment proposals.

A boiler room is a collective term for fraudulent individuals and organisations using clever salespeople and tactics to call potential investors and pressure them into buying shares that promise high returns, also known as cold calling. In reality the shares are either worthless or non-existent.

The AFM has established that Monex BMO Securities does not have an AFM licence or a European passport.

Background

The AFM has been responsible for supervising the operation of the financial markets since 2002, overseeing the conduct of the entire financial market sector, while aiming to make a contribution to the efficient operation of these markets.

If the AFM identifies any breaches, it can impose sanctions which include issuing public warnings, placing institutions under undisclosed custody and withdrawing a licence. The AFM is also authorised to impose fines and orders for periodic penalty Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term.

Tough Stance

The Netherlands has adopted a tough stance against financial service providers in recent years. Back in September, the country introduced a ban on binary options and CFDs advertising to prevent aggressive providers from harassing investors.

Furthermore, the AFM expects that the new MiFID II MiFID II MiFID II stands for the Markets in Financial Instruments Directive, and is the second iteration of a sweeping directive. As such it is known as MiFID II. The original Markets in Financial Instruments Directive (MiFID) became effective in November 2007. It was intended as the foundation of the EU’s Financial Services Action Plan, a comprehensive project to create a single European market in financial services. MiFID is intended to create a level playing field for firms to compete in the EU’s fina MiFID II stands for the Markets in Financial Instruments Directive, and is the second iteration of a sweeping directive. As such it is known as MiFID II. The original Markets in Financial Instruments Directive (MiFID) became effective in November 2007. It was intended as the foundation of the EU’s Financial Services Action Plan, a comprehensive project to create a single European market in financial services. MiFID is intended to create a level playing field for firms to compete in the EU’s fina Read this Term European regulations, coming into force in January 2018, will make the imposition of stricter requirements on high-risk investment products for consumers much easier.