Infringements of obligations to provide preliminary notice to BaFin or in connection with the notification to the Company Register are punishable by an administrative fine of up to €200,000 (see section 120 (1) nos. 2 and 3 in conjunction with section 120 (24), 2nd alternative, of the WpHG).

Intentional or reckless infringements of disclosure requirements are punishable by an administrative fine of up to €1,000,000 (section 120 (15) nos. 6 to 11 in conjunction with subsection (18) sentence 1 of the WpHG). A higher administrative fine may be imposed on legal persons. However, this may not exceed the higher of €2.5 million and two per cent of the total revenue of the preceding financial year (section 120 (15) nos. 6 to 11 in conjunction with subsection (18) sentence 2 no. 2 of the WpHG). It is also possible to confiscate profits of up to three times the profits gained/losses avoided (section 120 (5) nos. 6 to 11 in conjunction with subsection (18) sentences 3 und 4 of the WpHG).

A disclosure requirement has been infringed in particular if the notification or disclosure:

• has not been made,
• was made incorrectly,
• was made incompletely,
• was not made in the prescribed manner or
• was not made in due time.

In addition, BaFin announces certain measures and sanctions that it has enacted because of infringements of prohibitions and requirements in connection with Article 17 of the MAR on its website (see section 125 of the WpHG).¹

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