In 2017, approximately 150 market surveillance proceedings were conducted for possible violations of the Capital Investment Act and the German Securities Prospectus Act (Wertpapierprospektgesetz) (previous year: 119). As part of this process, BaFin firstly investigated tips it had received, and secondly it conducted its own checks of offers and the way they were marketed. In over 80 percent of these approximately 150 cases, it investigated whether capital investments or securities were offered to the public without publishing a prospectus in violation of the obligation to do so. BaFin completed 92 investigations in 2017. Where violations were identified while the offer was still ongoing, the offer was either prohibited, or the irregularity was made public. 23 of the investigations completed related to a suspected public offer of shares, in 17 cases it involved a public offer of bonds, and 15 investigations dealt with direct investments, i.e. other types of investment.

BaFin found 17 violations of the prospectus requirement by providers of subordinated loans, significantly fewer than the 49 identified in the previous year. The decline is attributable to the fact that BaFin regularly informs the providers concerned of violations and prosecutes such violations.

There was also a slight reduction in the number of investigations due to suspected public offers of shares within the meaning of section 1 (2) no. 1 of the Capital Investment Act, such as shares in partnerships (in particular OHG and KG) or shares in German limited liability companies (GmbH).

Marketing violations represented 20 percent of market surveillance proceedings in the year under review. All investigations into marketing violations were completed. Most cases, 17 in total, related to violations of the notification requirements laid down in section 12 (2) of the Capital Investment Act. The main concern was not that there was no warning. Rather, BaFin mostly found fault with the fact that it was not clearly highlighted. In 8 cases, it criticised that there was no warning relating to the promised return in the marketing material for investments offered to the public (section 12 (3) of the Capital Investment Act). In 7 cases, the reference to the prospectus and its publication, which section 12 (1) of the Capital Investment Act requires to be included in the marketing material for investments offered to the public, was only added after the Market Surveillance unit had taken action. In a total of 3 cases, an objection was raised to a reference to BaFin in the marketing material for investments offered to the public, which is unlawful pursuant to section 12 (4) of the Capital Investment Act. Only 1 case related to a marketing violation under the Securities Prospectus Act.