Revolut, the London-based financial technology giant, has been hit with a substantial eight-figure fine by Italian competition authorities following allegations of misleading customers regarding fees and investment product terms. The Italian watchdog announced that Revolut must pay €11.5 million, equivalent to approximately £10 million, after an investigation revealed inaccuracies in advertisements that suggested customers could trade with zero per cent commission.
Regulatory Findings and Penalties
The Italian competition regulator determined that Revolut's marketing materials failed to provide clear and comprehensive information about additional costs and the specific features of commission-free investments. As a result, the watchdog has imposed fines on two entities within the Revolut group: Revolut Securities Europe UAB, which offers investment services across Europe, and Revolut Group Holdings. Each company faces a penalty of €5 million for these violations.
Unfair Account Restrictions and Past Issues
In addition to the misleading advertising, the regulator found that Revolut had unfairly restricted some users' accounts, further compounding customer grievances. This incident adds to the fintech firm's regulatory challenges, as last year, the Bank of Lithuania fined Revolut £3 million for inefficiencies in its anti-money laundering controls. The timing is particularly notable as Revolut recently secured its banking permit in the United Kingdom just last month, highlighting ongoing scrutiny in the financial sector.
Revolut's Response and Appeal Plans
Revolut has responded forcefully to the Italian regulator's decision, stating that it "strongly disagrees" with the findings. The company has announced its intention to appeal the fine in Italian courts, signaling a potential legal battle ahead. This move underscores the firm's commitment to contesting what it views as unjust regulatory actions, even as it continues to expand its services and market presence globally.
The fine represents a significant regulatory setback for Revolut, which is valued at $75 billion and operates as a prominent neobank. As this is a developing story, further updates are expected as the appeal process unfolds and additional details emerge from Italian authorities and Revolut's legal team.
