THE HAGUE - The Netherlands Authority for the Financial Markets (AFM) imposed a 1.6 million euro fine on online crypto and stock platform BUX for paying “referral fees” to finfluencers to recruit new customers. According to the regulator, such referral fees are not in the interest of potential customers. 

According to the AFM, BUX used an “affiliate program” and “friends program” in which it paid finfluencers, comparison websites, and existing customers a fee for each potential new customer they referred. This violates the ban on commissions in the sector. 

“The ban on commissions ensures that investment firms put the interests of the customer first. The ban prevents consumers from being steered in a direction that is not in their interest as a result of financial incentives,” the AFM said. By paying referral fees to finfluencers, among others, BUX created a financial incentive for them to refer as many followers as possible without taking the interests of the potential investor into account. 

The fine was issued on November 18, 2024. BUX, which was acquired by ABN Amro last year, has ended the violations, AFM said. 

BUX director Yorick Naeff told ANP that BUX stopped the referral fees in April 2023, and ABN Amro knew about the discussions between BUX and the AFM at the time of the takeover. BUX took the matter to court, but the court ruled the fine justified, he told the news wire. 

According to Naeff, BUX’s referral fees were never to the detriment of customers. He said he respects the AFM’s position but also believes that the scope of the Dutch ban on commissions is too unclear. The company is still considering initiating substantive proceedings