*Primary: Investment services providers operating in Germany, particularly online brokers and retail trading platforms offering brokerage services, ETF products, and securities trading. *Secondary: Any financial institution with marketing responsibilities for investment products or services subject to WpHG requirements, including: Banks offering investment services Fintech platforms providing trading or investment functionality Wealth managers and asset managers marketing services to retail clients

What should firms consider doing?

*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): *Audit marketing materials across all channels (websites, social media, advertisements, promotional materials) to identify any claims of "free" or "no-cost" services that lack explicit fee disclosures *Implement clear disclosure protocols requiring that:

🇩🇪 BaFin Enforcement high

flatexDEGIRO Bank AG: BaFin imposes administrative fines

Published 22 December 2025 | Germany

AI Analysis

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.

Key dates

Beginning of 2022: – flatexDEGIRO Bank AG violated WpHG requirements by advertising free services without disclosing processing fees
2022: – flatexDEGIRO adapted its practices to comply with legal requirements
December 16, 2025: – BaFin imposed two administrative fines totaling €560,000
December 22, 2025: – BaFin publicly announced the enforcement action

Suggested considerations

*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):
*Audit marketing materials across all channels (websites, social media, advertisements, promotional materials) to identify any claims of "free" or "no-cost" services that lack explicit fee disclosures
*Implement clear disclosure protocols requiring that:

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 inves

Compliance impact

Urgency: HIGH

Who is affected

*Primary: Investment services providers operating in Germany, particularly online brokers and retail trading platforms offering brokerage services, ETF products, and securities trading.
*Secondary: Any financial institution with marketing responsibilities for investment products or services subject to WpHG requirements, including:
Banks offering investment services
Fintech platforms providing trading or investment functionality
Wealth managers and asset managers marketing services to retail clients

*Regulatory Framework
*Industry Precedent
*Broader Enforcement Context
Marketing and consumer protection compliance (flatexDEGIRO case)
AML/CFT controls and suspicious transaction reporting (J.P. Morgan SE case)
Internal control frameworks and supervisory reporting

References

AI-generated analysis. May contain errors or omissions — verify with the original BaFin source before acting. Full disclaimer.

What the BaFin said

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…

Extract from BaFin . Read the full notice at the source for the authoritative text.

Sectors

Banking & Credit Investment Management Capital Markets & Trading

Topics

Consumer Protection / Conduct Reporting & Disclosure

Relevant Firm Types

Broker DealerBankFintech

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