Fine imposed on BondAuction Europe B.V. for repeated capital shortfall

Reason for the fine

• Investment firms must at all times maintain sufficient own funds. This is essential to safeguard the solidity of the undertaking and to maintain confidence in the financial sector.
• Within a period of 25 months, BondAuction experienced a capital shortfall on two occasions. Pursuant to DNB’s Enforcement Policy on Prudential Capital Shortfall of 20 February 2015 (capital shortfall enforcement policy), an administrative fine is in principle imposed upon a second infringement of the capital requirement. DNB therefore imposes a fine.

Capital requirements

Investment firms such as BondAuction play an important role in the financial system. They must at all times maintain sufficient capital to absorb risks and meet their obligations, including under less favourable circumstances. This serves to protect not only the undertaking itself, but also the interests of clients and confidence in the financial markets. Failure to comply with the capital requirements may undermine the stability of both the undertaking and the wider financial system.

Non-compliance

DNB has established that BondAuction did not comply with its minimum capital requirement of €75,000 during the periods from 14 March 2024 to 6 December 2024 and from 31 March 2025 to 1 May 2025. In both periods, the level of own funds was below the required minimum. DNB emphasised to BondAuction the importance of complying with the capital requirements. Nevertheless, no structural improvement materialised, resulting in a further capital shortfall. BondAuction ultimately remedied the shortfalls by converting loans into a share premium reserve. During the period of the violation, BondAuction did not provide services to any clients.

Administrative fine

The fine for the infringement of the capital requirement has been set, in accordance with the capital shortfall enforcement policy, at €10,125. In determining the amount of the fine, DNB took into account that BondAuction has taken measures to prevent a recurrence of the violation.

Legal remedies

A decision becomes final (irrevocable) if no legal remedies are lodged against it. Any interested party may lodge an objection against the decision within six weeks of its date. The decision on the objection can be appealed in court within six weeks. Further appeal against the court ruling may be lodged with the Trade and Industry Appeals Tribunal (College van Beroep voor het bedrijfsleven – CBb). The judicial authority determines whether a judgment is published, either in anonymised form or not. Published judgments can be found at www.rechtspraak.nl.

Current status

The table shows the current status of this decision.

Read the full decision below (in Dutch), excluding confidential information. For further information, please contact DNB’s Information Desk at telephone number 0800 - 020 1068 (free of charge) or +31 20 524 9111 (if calling from abroad).