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On 4 July 2023, the Federal Financial Supervisory Authority (BaFin) imposed an administrative fine amounting to 82,000 euros on cash.life AG on grounds that the company had violated the Market Abuse Regulation (MAR) by failing to disclose inside information within the prescribed period.
cash.life AG may lodge an appeal against BaFin’s administrative fine order.
Background information:
Companies, such as cash.life AG, that are domiciled in Germany and are issuers of securities and other financial instruments on an organised market are subject to the ad-hoc publication requirement. This means that they are required to publish inside information without delay. Inside information is non-public information that, if it were made public, would be likely to have a significant effect on the price of a financial instrument. The ad-hoc publication requirement is part of the MAR.
Publishing inside information without delay is important for several reasons: first, to prevent insiders from using their knowledge to gain an advantage when trading in securities or other financial instruments. Second, to ensure that investors are not misled when making investment decisions.
Any company failing to publish inside information violates the provisions of the first subparagraph of Article 17 (1) of the MAR. BaFin may sanction such a violation by imposing a fine of a maximum of 2.5 million euros or 2% of the total turnover.
Announcement
On 4 July 2023, the Federal Financial Supervisory Authority (BaFin) imposed an administrative fine amounting to 82,000 euros on cash.life AG.
The sanction related to a breach of the first subparagraph of Article 17 (1) of the Market Abuse Regulation (MAR). cash.life AG failed to publish inside information without undue delay.
The company may lodge an appeal against the administrative fine order.
