flatexDEGIRO SE: Bafin imposes administrative fine

What Changed

• - BaFin confirms that supervisory findings from a section 44 KWG special inspection that identify shortcomings in proper business organisation can constitute inside information requiring ad hoc disclosure under Article 17(1) MAR.
• BaFin re‑emphasises that issuers must disclose inside information “as soon as possible” and that delayed or gradual communication via standard press releases does not satisfy MAR ad hoc disclosure requirements.
• BaFin reiterates its power to impose administrative fines for failures to publish inside information in a timely and proper manner, up to €2.5 million or 2% of total revenue, and demonstrates its willingness to use this upper MAR/WpHG fine framework.
• BaFin clarifies that the appropriate format for investor‑relevant inside information is a MAR‑compliant ad hoc disclosure, not a general press release, and that any delay or downgrading of format can be treated as a regulatory breach.
• The publication reinforces that issuers domiciled in Germany whose instruments are traded on organised markets or MTFs remain fully subject to MAR ad hoc disclosure obligations, including for negative supervisory assessments of internal organisation

Suggested Considerations

• Review and update internal MAR Article 17 policies to ensure that all supervisory findings, particularly section 44 KWG special inspections revealing organisational shortcomings, are assessed promptly and systematically for potential classification as inside information.
• Implement or strengthen formal escalation procedures so that supervisory findings and other potential inside information are immediately escalated from risk, compliance, and legal to the issuer’s disclosure committee or senior management for rapid ad hoc disclosure decisions.
• Ensure that any information determined to be inside information is disclosed “as soon as possible” via a formal MAR‑compliant ad hoc announcement and not merely via a standard press release or non‑regulated communication channel.
• Review current disclosure controls and procedures to confirm that ad hoc announcements are distinguished clearly from general press releases, including separate workflows, templates, approval chains, and distribution lists.
• Conduct a gap analysis of past supervisory communications and regulatory inspections to confirm that no potentially price‑sensitive findings were handled only as press releases; remediate control failures and document lessons learned.
• Train investor relations, corporate communications, and senior management on the difference between MAR ad hoc disclosure and ordinary press releases, emphasizing timing requirements and the need to use regulated information dissemination systems.

Key Dates

Who is Affected