Amsterdam,Netherlands – The Dutch Authority for the Financial Markets (AFM) has levied hefty finestotaling €800,000 against two prominent finfluencers for their role in promoting an illegal asset manager, Grinta Invest. Theregulator alleges that the influencers, Koen Nieuwenhuijs and Mories van de Venne, actively encouraged investors to participate in Grinta Invest’s operations, earningsubstantial rewards in the process.
Nieuwenhuijs was fined €256,000, while van de Venne received a €544,000 penalty. The AFM determined that their actions constituted complicity inillegal asset management, a serious offense that carries significant financial repercussions.
This is a serious matter, stated the AFM. Investors were drawn in, in part, due to the promotion and influence of these individuals, allowing Grinta Investto abscond with their money.
The term finfluencer refers to individuals who leverage their online presence, often on social media platforms, to share financial advice and insights. While many finfluencers operate within ethical boundaries, a growing number lack the necessary financial expertise or experience, yet present themselves as authorities oninvestment matters.
In the case of Nieuwenhuijs and van de Venne, their influence attracted investors to Grinta Invest, an entity that lacked the required licenses to operate as an asset manager. The AFM had previously issued warnings in 2021 regarding Grinta Invest’s illegal activities, highlighting thecompany’s lack of authorization and its history of disappearing with investors’ funds.
Despite these warnings, the two finfluencers continued to promote Grinta Invest, receiving substantial compensation for their efforts. The AFM revealed that the influencers earned a 10% commission on all investments they facilitated, a factor that contributed tothe severity of the fines imposed.
The AFM emphasizes that while the finfluencers may not have intended for Grinta Invest to defraud investors, their active promotion of the illegal entity played a significant role in enabling the company’s illicit activities.
This case marks the second instance within a short period where the AFM hastaken action against individuals promoting illegal financial schemes. In June, the regulator fined another tax and financial advisor €620,000 for promoting Grinta Invest.
The AFM’s crackdown on finfluencers promoting illegal financial ventures underscores the growing concern surrounding the lack of regulation and oversight in theonline financial advice landscape. As the influence of social media continues to expand, the AFM is actively working to protect investors from fraudulent schemes and ensure that those who provide financial advice operate within legal and ethical boundaries.
The AFM’s actions serve as a stark reminder that financial advice should be sought from qualified and reputable professionals.Investors are urged to exercise caution when considering investment opportunities promoted online, particularly those offered by individuals lacking proper credentials and experience.
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