Erscheinung:02.11.2023 | Topic Measures ECHOS Holding AG: BaFin imposes administrative fine
On 12 October 2023, the Federal Financial Supervisory Authority (BaFin) imposed an administrative fine amounting to 7,800 euros on ECHOS Holding AG. The fine was imposed because the company had contravened obligations under the German Securities Trading Act (Wertpapierhandelsgesetz – WpHG). ECHOS Holding AG had failed to publish an announcement about the date from which and the website where its 2022 annual financial report was made publicly available.
Annual financial reports are available in the Company Register. However, companies must provide information about when and where their financial reports are published in addition to this.
Background information: Financial reports provide information on companies’ net assets, financial position and results of operations. This information is important for investors because it allows them to make informed investment decisions. Companies such as ECHOS Holdings AG that are domiciled in Germany and issue securities traded on an organised market in Germany must publish an announcement about the date from which and the website where their annual financial reports are made publicly available, in addition to their availability in the company register. This announcement must be published no later than four months after the end of each financial year and before the date when the accounting documents are made publicly available for the first time.
Failure on the part of a company to publish such an announcement constitutes a contravention of the Securities Trading Act. BaFin may impose administrative fines on companies that fail to comply with this obligation. The maximum amount for this fine is 10 million euros or up to 5% of total revenue.
Announcement
On 12 October 2023, the Federal Financial Supervisory Authority (BaFin) imposed an administrative fines amounting to 7,800 euros on ECHOS Holding AG.
The sanction related to a breach of section 114 (1) sentence 2 of the German Securities Trading Act (Wertpapierhandelsgesetz – WpHG). ECHOS Holding AG failed to publish an announcements stating the date and the website on which the accounting documents listed in section 114 (2) of the WpHG for the financial year 2022 were made publicly available in addition to their availability in the Company Register (Unternehmensregister).
The company may lodge an appeal against the administrative fine order.
Update (03.11.2023):
On 30 October 2023, the company lodged an appeal against the administrative fine order.
