Erscheinung:21.04.2023, Stand:updated on 15.11.2023 | Topic Measures Landesbank Berlin AG: BaFin imposes administrative fine
On 4 April 2023, the Federal Financial Supervisory Authority (BaFin) imposed an administrative fine amounting to 1,000,000 euros on Landesbank Berlin AG on grounds that the bank had violated the Market Abuse Regulation (MAR) by unlawfully disclosing inside information.
The company may lodge an appeal against the administrative fine order.
Landesbank Berlin AG lodged an appeal against the administrative fine order on 25 April 2023.
In a decision issued on 7 November 2023, the Frankfurt am Main Local Court (Amtsgericht Frankfurt am Main) discontinued the proceedings in accordance with section 47 (2) of the German Act on Regulatory Offences (Ordnungswidrigkeitengesetz – OWiG).
Background information:
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. Anyone disclosing inside information to another person is acting unlawfully unless it is done in the normal course of the employment, duties or profession of such a person.
Prohibiting the disclosure of inside information serves the purpose of limiting the number of persons who have access to inside information. The intention is to mitigate the risk of illegal insider dealing.
A disclosure is considered unlawful if it enables persons to gain access to inside information without considerable difficulties. Unlawful disclosure should not be confused with an official publication of inside information. The moment an item of information is published, it loses the status of inside information.
Any company unlawfully disclosing inside information violates the provisions of the MAR. BaFin may sanction such a violation by imposing a fine. For legal persons, this fine may amount to a maximum of 15 million euros or 15% of the total turnover.
Announcement
On 4 April 2023, the Federal Financial Supervisory Authority (BaFin) imposed an administrative fine amounting to 1,000,000 euros on Landesbank Berlin AG.
The sanction related to a breach of Article 14 (c) in conjunction with the first subparagraph of Article 10 (1) of the Market Abuse Regulation (MAR). Landesbank Berlin AG had unlawfully disclosed inside information.
The company may lodge an appeal against the administrative fine order.
Update (26.04.2023):
On 25 April 2023, the company lodged an appeal against the administrative fine order.
Update (15.11.2023):
In a decision issued on 7 November 2023, the Frankfurt am Main Local Court (Amtsgericht Frankfurt am Main) discontinued the proceedings in accordance with section 47 (2) of the German Act on Regulatory Offences (Ordnungswidrigkeitengesetz – OWiG).
