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On 24 March 2023, the Federal Financial Supervisory Authority (BaFin) imposed an administrative fine amounting to EUR 190,000 on ETC Issuance GmbH. The fine was imposed due to the company’s failure to comply with obligations under the German Securities Trading Act (Wertpapierhandelsgesetz – WpHG). The company failed to publish an announcement about the date from which and the website where its 2021 annual financial report was made publicly available.
Annual financial reports are available in the company register. However, securities trading firms must announce when and where their financial reports are also published.
The company may lodge an appeal against the administrative fine order.
Background information:
Annual financial reports provide information on companies’ assets, financial position and results of operations. This information is important to investors because it allows them to make informed investment decisions. Companies such as ETC Issuance GmbH that are domiciled in Germany and that issue securities that are traded on an organised market in Germany must publish an announcement about the date from which and the website where, in addition to the company register, their annual financial reports are made publicly available.
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 in question are made publicly available for the first time. Failure to publish such an announcement constitutes a contravention of section 114 (1) sentence 2 of the WpHG. BaFin may impose administrative fines on companies that fail to comply with this obligation. The maximum amount for this fine is EUR 10 million or up to 5% of total revenue.
Announcement
On 24 March 2023, the Federal Financial Supervisory Authority (BaFin) imposed an administrative fine amounting to 190,000 euros on ETC Issuance GmbH.
The sanction related to a breach of section 114 (1) sentence 2 of the German Securities Trading Act (Wertpapierhandelsgesetz – WpHG). ETC Issuance GmbH failed to publish an announcement, stating the date and the website on which the accounting documents listed in section 114 (2) of the WpHG for the financial year 2021 were made publicly available in addition to their availability in the Company Register (Unternehmensregister).
The company may lodge an appeal against the administrative fine order.
