Under the MiFID II rule, the inducement ban applies in the Netherlands for investment firms that provide investment services or ancillary services to retail investors. In summary, this means that investment firms may not receive or provide any monetary or non-monetary inducements in relation to the provision of an investment or ancillary service, according to the AFM. A ban on inducements also applies in the case of individual portfolio management and independent advice provided to professional investors. Requirements regarding paying and receiving inducements also apply to other forms of services provided to professional investors. For instance, the inducements must enhance the quality of the service and they may not harm the client's interest.
Previously, BUX paid compensations to existing customers, comparison websites, and flinfluencers for introducing new customers. AFM claims that the manner in which this was done violated the inducements ban.
BUX stopped paying referral fees in 2023, before banking firm ABN Amro agreed to buy the platform. The bank was aware of the AFM probe at the time. Since then, BUX stopped paying the referral fees, as they were a disadvantage for its existing and new customers.
BUX claims that it respects AFM’s position, and it paid past referral fees out of its own pocket, not at the expense of its customers, as it is committed to transparency and honouring their interests. Its focus remains on building an accessible and intuitive investment platform, as it continues striving to increase retail participation in Europe.
BUX’s mission is to make investing accessible, intuitive and affordable for everyone. Part of its goal is to increase retail participation in Europe by providing customers with a convenient experience that makes investing a simple habit.
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