Revolut slapped with eight-figure fine in Italy over misleading customers
Revolut has been slapped with a fine by the Italian competition watchdog after the firm was accused of misleading customers over its fees and terms of its investment products.
The London-based fintech giant is expected to cough up €11.5m (£10m) after the Italian regulator found advertisements that implied customers could trade with 0 per cent commission were inaccurate.
The $75bn neobank – which clinched its banking permit in the UK just last month – was also found to have restricted some users’ accounts unfairly.
Italy’s competition authority said it found the banking titan had “used aggressive practices in managing the suspension, limitation and blocking of payment accounts, while omitting (or failing to clearly provide) key information on the relevant terms and procedures.”
“[Revolut] did not provide clients with sufficient pre-contractual information, or advance notice before restrictions were imposed, nor did they provide an opportunity to respond or adequate assistance once restrictions had been imposed,” the watchdog added.
Revolut to fight back against fine
The watchdog said it would fine Revolut Securities Europe UAB – the group company offering investment services in Europe – and Revolut Group Holdings €5m each for “failing to provide customers… with clear and comprehensive information about the presence of additional costs and the features of commission-free investments”.
The remaining €1.5m of the fine came from “not providing clear and exhaustive information on the requirements and time frame” for customers moving from Lithuanian bank accounts to Italian.
But the fintech has hit back, stating it “strongly disagrees” with the findings and intends to appeal against the decision in Italian courts.
“This will have no impact on Revolut’s operations or financial position,” a spokesperson added.
Last year, the firm was handed a £3m by the Bank of Lithuania for inefficiencies in its money laundering control.
The neobank was blasted for “violations and shortcomings in the monitoring of business relationships and [transactions]” by the Bank of Lithuania.
This followed a previous fine of €70,000 (£60,000) by the Lithuanian regulators in 2022 for failing to submit its financial statements on time.