Erscheinung:19.06.2024 | Topic Measures Failure to fulfil financial reporting requirements: BaFin imposes administrative fine
The Federal Financial Supervisory Authority (BaFin) has imposed an administrative fine amounting to 8,000 euros on an individual in a management position at an issuer domiciled in Germany. The company, which is domiciled in Germany and issues securities traded on an organised market in Germany, had failed to publish an announcement about the date from which and the website where its 2022 annual 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 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 punish these contraventions by imposing an administrative fine. If imposed on a natural person, this fine can be up to 2 million euros. If a company contravenes financial reporting requirements, BaFin may hold the individual in a management position at the company accountable for this.
