Erscheinung:09.08.2023, Stand:updated on 30.08.2023 | Topic Measures Failure to submit voting rights notifications within the prescribed period: BaFin imposes administrative fines
On 31 July 2023, the Federal Financial Supervisory Authority (BaFin) imposed administrative fines of 48,000 euros on a natural person. The fines were imposed in consequence of the person’s violation of the German Securities Trading Act (Wertpapierhandelsgesetz – WpHG). This person had failed to submit voting rights notifications within the prescribed period.
An appeal may be lodged against the administrative fine order.
Update (30.08.2023):
The administrative fine order is final and binding.
Background information
Shareholders must notify the issuer and BaFin within four trading days if their voting rights meet certain thresholds.
They are required to use a binding notification form for their voting rights notification. This is set out in section 12 (1) of the German Securities Trading Reporting Regulation (Wertpapierhandelsanzeigeverordnung – WpAV).
If parties subject to the notification requirement fail to notify the issuer and BaFin within the prescribed period that their shares have exceeded or fallen below certain thresholds, they violate section 38 (1) in conjunction with section 33 (1) sentence 1 of the WpHG. BaFin may impose an administrative fine for failure to comply with this obligation. If imposed on a natural person, this fine can be up to 2 million euros.
The obligation to submit voting rights notifications helps to ensure the transparency of the capital market. The aim is to make Germany as a financial centre more attractive in the face of international competition and to enhance investor confidence in the stable functioning of the German stock market.
Announcement
On 31 July 2023, the Federal Financial Supervisory Authority (BaFin) imposed administrative fines totalling 48,000 euros on a natural person due to breaches of section 38 (1) in conjunction with section 33 (1) sentence 1 of the German Securities Trading Act (Wertpapierhandelsgesetz – WpHG).
An appeal may be lodged against the administrative fine order.
Update (30.08.2023):
The administrative fine order is final and binding.
