Article from the Annual Report 2016 of the BaFin
In 2016, BaFin launched 281 new administrative fine proceedings due to violations of capital markets law (previous year: 421; see Table 27 "Administrative fine proceedings"). A total of 1,041 proceedings were still pending from the previous year. BaFin concluded 106 proceedings (previous year: 180) by imposing administrative fines totalling €2.57 million (previous year: €7.2 million). The prosecution ratio was 27.6% (previous year: 37.8%). BaFin discontinued a total of 289 administrative fine proceedings, 194 for discretionary reasons.
Table 27 Administrative fine proceedings
Administrative fine proceedings
* Proceedings completed by imposing an administrative fine.** Individual administrative fines.
Source: BaFin
Information published on BaFin's website
BaFin publishes on its website information on measures and sanctions imposed by Securities Supervision.2 This new practice has resulted from new European requirements laid down in the Transparency Directive II3 and the MAR4. Apart from a few exceptions, the information is published immediately and not anonymised. In addition to the identity of the affected party, the information published includes above all the type of violation, the legal provisions contravened and the type of measure or sanction imposed. The measures or sanctions imposed do not have to be enforceable as a condition for publication; rather, the information has to be published immediately following the decision. For this reason, BaFin continually updates the information published on its website to reflect the status of the proceedings. For example, if an affected party appeals, BaFin will add a note to the information published. BaFin can only delay or anonymise the information published in narrowly defined exceptional cases, for example if it would be disproportionate to publish personal data. For violations of the MAR, BaFin can also – as a last resort – opt not to publish the information at all. The MAR specifies that the information must be available on BaFin's website for a period of at least five years. Section 40d of the German Securities Trading Act (Wertpapierhandelsgesetz) additionally specifies that the information must be deleted after that period.
Footnote:
- 1 For administrative fine proceedings due to violations by investment firms of the conduct of business rules as well as organisational and transparency requirements under the Securities Trading Act and violations of the Banking Act, see chapters Supervision of advice and distribution in the securities business and Administrative fine proceedings initiated by BaFin.
- 2 www.bafin.de/dok/7852642 (only available in German).
- 3 Article 29 of the Transparency Directive II, Directive 2013/50/EU, OJ EU L 294/13.
- 4 Article 34 of the MAR, Regulation (EU) No 596/2014, OJ EU L 173/1.2.
