Erscheinung:25.07.2023 | Topic Measures Hauck & Aufhäuser Fund Services S.A.: BaFin imposes administrative fine
On 29 June 2023, the Federal Financial Supervisory Authority BaFin imposed an administrative fine in the amount of 70,000 euros on Hauck & Aufhäuser Fund Services S.A. The reason was a breach of that company’s duty of oversight in connection with contraventions of the German Securities Trading Act (Wertpapierhandelsgesetz (WpHG)).
Hauck & Aufhäuser Fund Services S.A. had failed to submit voting rights notifications within the prescribed period.
The administrative fine order is final and binding.
Background information:
Shareholders are required to submit a notification to BaFin and the issuer whenever their shares of voting rights reach certain thresholds. The notification must be submitted within four trading days.
As stipulated in section 12 (1) of the German Securities Trading Reporting Regulation (Wertpapierhandelsanzeigeverordnung – WpAV), shareholders are required to use a binding voting rights form to submit the notification.
Any party subject to the notification requirement that fails to notify BaFin and the issuer within the prescribed period in the event that their share of voting rights exceeds or falls below certain thresholds is in violation of section 33 (1) sentence 1 of the WpHG. BaFin may sanction such violations by imposing a fine. For legal persons, this fine may amount to a maximum of 10 million euros or up to 5% of the company’s total turnover.
The requirement to submit voting rights notifications serves to enhance transparency on the capital market. It is intended to make Germany as a financial centre more attractive and to strengthen investor trust in the functioning of the German stock market.
Announcement
On 29 June 2023, the Federal Financial Supervisory Authority (BaFin) imposed an administrative fine amounting to 70,000 euros on Hauck & Aufhäuser Fund Services S.A.
The sanction related to a breach of section 130 (1) of the German Act on Breaches of Administrative Regulations (Ordnungswidrigkeitengesetz – OWiG) in conjunction with section 33 (1) sentence 1 of the German Securities Trading Act (Wertpapierhandelsgesetz – WpHG). Hauck & Aufhäuser Fund Services S.A. failed to submit voting rights notifications within the prescribed period.
The administrative fine order is final and binding.
