Dutch Minister of Finance Jeroen Dijsselbloem stated his intent to ban the advertising of risky financial investments like Binary Options and contracts for Difference (CFDs) within the Netherlands, in a Parliamentary session on September 16, 2016.
Dijsselbloem will be collaborating with the Netherlands Authority for the Financial Markets (AFM) to craft the new legislation.
According to Merel van Vroonhoven, chair of the AFM Executive Board, enticing consumers with get-rich-quick schemes should be banned, as the likelihood of loss is quite high, "Advertising for these investments entices consumers with the prospect of earning money fast, but it is actually the case that you can easily lose all of the money you have put in," said Vroonhoven.
"We consider it very important to introduce an advertising ban on Binary Options and other toxic investment products,"The AFM has fought tooth and nail to keep CFD brokers from entering the Dutch investment marketplace. Last year, Bas Jongmans of Gaming Legal Attorneys, forced the AFM to issue the first Binary Options license in the Netherlands to Optieclub, after filing a preliminary injunction with the Rotterdam Administrative Court.
Under current rules, foreign business can access the Dutch market via a European Passport, however, the AFM is now conducting a further inquiry into the CFD marketplace in the Netherlands.
In their most recent press release, the AFM also states that stricter rules for the industry are on the way with new regulations, expected in January of next year:
“Moreover, new European regulations (MiFID II) are expected in January 2018, which will make it possible to impose stricter requirements on high-risk investment products for consumers.”