flatexDEGIRO Bank AG: BaFin imposes administrative fines
Executive Summary
BaFin imposed €560,000 in administrative fines on flatexDEGIRO Bank AG on December 16, 2025, for misleading marketing of investment services that advertised free offerings without clearly disclosing mandatory processing fees. This enforcement action underscores BaFin's strict interpretation of fair and transparent marketing requirements under the German Securities Trading Act (WpHG) and demonstrates that even corrective action taken by firms does not eliminate regulatory penalties for past violations.
What Changed
The enforcement action clarifies BaFin's expectations regarding fair and clear marketing communications for investment services: - Investment services providers must explicitly and unambiguously disclose all material costs, including processing fees, when advertising services as "free" - Marketing materials must present both benefits and risks of services in a balanced manner, with relevant risks highlighted alongside advantages - These obligations apply across all marketing channels, including company websites - The requirements are grounded in the WpHG and further specified in EU regulations and MiFID II guidance The violation centered on flatexDEGIRO's failure to clearly indicate that regular processing fees would be charged despite advertising free investment services on two websites
What You Need To Do
- *For flatexDEGIRO Bank AG (already completed)
- Modify marketing materials to clearly and explicitly disclose all material costs and fees
- Ensure balanced presentation of benefits and risks across all marketing channels
- *For all investment services providers (preventive compliance):
- *Implement clear disclosure protocols requiring that
- All material costs (processing fees, transaction fees, account maintenance charges) are stated explicitly and unambiguously
Key Dates
Compliance Impact
Urgency: HIGH
Who is Affected
Summary
On 16 December 2025, BaFin imposed two administrative fines amounting to €560,000 on flatexDEGIRO Bank AG. The company had contravened obligations under the German Securities Trading Act (Wertpapierhandelsgesetz - WpHG). At the beginning of 2022, flatexDEGIRO Bank AG advertised free investment services on two of its websites without clearly indicating that a processing fee would be charged on a regular basis. flatexDEGIRO Bank AG adapted its practices to comply with the legal requirements in ...