Failure to submit notification of own account transactions: Bafin imposes administrative fines
Executive Summary
BaFin has imposed administrative fines totalling €90,000 on a natural person for breaching Article 19(1) of the EU Market Abuse Regulation (MAR) by failing to submit notifications of own-account transactions in the issuer’s instruments within the prescribed deadline. This enforcement action underscores that German supervisors are actively monitoring directors’ dealings and will impose significant sanctions for seemingly “procedural” failures in managers’ transaction reporting, even where the underlying trading behaviour is not alleged to be abusive.
What Changed
- - The publication reaffirms that persons discharging managerial responsibilities (PDMRs) and persons closely associated with them must notify both the issuer and BaFin of any own-account transactions in the issuer’s securities or related financial in
- BaFin clarifies that failure either to notify at all or to notify within the three-business-day deadline constitutes a breach of Article 19(1) MAR and may be sanctioned via administrative fines.
- The publication reiterates BaFin’s fining powers for infringements of Article 19(1) MAR, up to €500,000 for natural persons and up to €1,000,000 for legal persons.
- In the specific case reported, BaFin imposed administrative fines totalling €90,000, signalling a materially significant level of sanction for non‑submission of managers’ transaction notifications.
- The background section restates that the issuer must publicly disclose the information contained in managers’ transaction notifications, emphasising the transparency function within the MAR regime.
- The publication implicitly confirms that BaFin is using Article 19 MAR enforcement as a proactive tool to deter insider dealing by ensuring that privileged persons’ trading activity is visible to the market.
Suggested Considerations
- Review existing MAR Article 19 managers’ transaction policies and procedures to ensure they explicitly require notification to the issuer and BaFin within three business days of the transaction date.
- Implement or enhance automated monitoring and reminder systems that track PDMR and closely associated persons’ trading and flag the three‑business‑day reporting deadline to both individuals and compliance teams.
- Update internal guidance and PDMR onboarding materials to clarify the increased €50,000 annual reporting threshold effective 01 January 2026 and how to aggregate transactions across the calendar year.
- Map and maintain a current register of all persons closely associated with each PDMR (including natural and legal persons) and ensure they are contractually or formally bound to comply with Article 19 MAR notification obligations.
- Establish clear escalation procedures whereby any missed or late notification is immediately reported to compliance, assessed for regulatory breach, and, where appropriate, self‑reported to BaFin.
- Ensure issuers have robust processes to promptly receive managers’ transaction notifications, validate them, and make the required public disclosures without delay.
Key Dates
Compliance Impact
Non‑compliance with Article 19(1) MAR on managers’ transaction notifications can result in substantial administrative fines (up to €500,000 for natural persons and €1,000,000 for legal persons) and heightened supervisory scrutiny. Beyond financial penalties, failures in this area may trigger broader concerns about insider‑dealing controls and governance, potentially impacting an issuer’s regulator
Who is Affected
References
AI-generated analysis. May contain errors or omissions — verify with the original BaFin source before acting. Full disclaimer.
Summary
On 9 April 2026, the Federal Financial Supervisory Authority (Bafin) imposed administrative fines totalling €90,000 on a natural person. The fines were imposed due to the person’s violation of MAR. The person in question failed to submit notifications of own account transactions.