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AFM

what is the afm?

About the AFM and their role as for Corekees

The AFM stands for Autoriteit Financiële Markten (Authority for the Financial Markets) . This is the organization in the Netherlands that supervises parties in the financial markets, such as banks, stock exchanges, and investment firms. The AFM is an autonomous government body that ensures parties provide correct information, act fairly, and behave properly.

summarized

  1. Product type is a ‘security’ (e.g., a bond): No license requirement, only a prospectus requirement.
  2. Security is less than €5 million per project per year: No prospectus requirement.

License and Prospectus Requirements

If you sell investment objects, you must have a license according to AFM rules (Article 2:55 Wft). However, when this investment object is a ‘security’ (such as a bond), an exception to this licensing requirement applies. In other words, it is no longer prohibited to sell them without a license.

While a prospectus requirement applies to the offering of securities (Article 5:4 paragraph 1 Wft), this requirement does not apply if you sell less than €5 million worth of securities per year. In those cases, the provider is obliged to:

  1. Use the mandatory AFM banner in all commercial communications.
  2. Complete the ‘notification form’ and submit it to the AFM.

In this way, the AFM keeps track of who in the market is using specific exceptions and exemptions. Corekees submits this notification to the AFM for every project.

What is a Prospectus?

A prospectus is a document containing all relevant information regarding the investment. The prospectus describes a financial product for potential buyers.

More Information on the Prospectus Exemption

AIf you can answer ‘Yes’ to at least one of the following questions, a prospectus exemption applies. These questions cover the most common situations:

  • Is the value of the securities (whether or not in a bundle) at least €100,000 per investor?
  • Are the securities offered to fewer than 150 persons?
  • Is it an offer from a non-profit association or institution to achieve non-commercial goals?
  • Is the total value of the offered securities less than €5 million, calculated over a 12-month period?

Because Corekees can answer ‘Yes’ to the fourth question, we utilize the aforementioned prospectus exemption. However, conditions do apply to this exemption.

What conditions apply to the prospectus exemption?

  1. Prior to the placement of a project, we must notify the AFM.
  2. In all our commercial communications, we must use the mandatory AFM banner.

Notifying the AFM 

Click on a project for the links to the AFM information documents:

Additional Information: What should you look for in an exempt investment?

Always check the website and carefully read the available documents, such as information brochures. Glossy brochures and professional-looking websites are no guarantee of a good investment. Always take the time to think carefully about the offer, avoid investments you do not understand, and be cautious of complex investment structures that promise high returns with low risk.

Checklist

  • Who is involved in the company?
  • Who are you entrusting your money to?
  • How much do they earn from your investment?
  • What costs are they deducting?
  • In which country is the organization registered?
  • What is your money allowed to be used for?
  • What are the biggest risks?
  • How is the promised return realized?
  • What are they doing to mitigate the risks?

Do you have doubts about the reliability of an offered investment?

Please contact the Financial Markets Public Information Service (Meldpunt Financiële Markten).

Want to know more?

Check the website of the AFM.