tougher penalties

Financial Regulator Bares its Teeth

Elisabeth Roegele Bert Bostelmann cut HB
Elisabeth Roegele, head of securities supervision at BaFin, says higher fines are to come.
  • Why it matters

    Why it matters

    Market manipulation is hard to prove and hard to prosecute but German regulator Bafin is determined to go after wrongdoers.

  • Facts


    • Bafin is currently investigating a case of possible market manipulation at Wirecard, a company listed on Germany’s technology focused stock exchange TecDAX.
    • A Bafin investigation into market manipulation of VW shares led to the trial of former Porsche Chief Executive Wendelin Wiedeking and his former chief financial officer, Holger Härter.
    • A verdict on the Porsche case is expected Friday.
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German financial regulators will impose larger fines on offenders to comply with European legislation, according to one of Germany’s top regulators.

Elisabeth Roegele, who heads the securities supervision section of the Federal Financial Supervisory Authority, also known as BaFin, told Handelsblatt the upper limit on fines for individuals found guilty of market manipulation would be raised from €1 million, or $1.1 million, to €5 million.

Breaching rules about full disclosure could result in fines of up to €10 million, she said.

Ms. Roegele, a former share trader, added that prison terms for people who manipulate the prices of penny shares, or smaller companies, may also be increased to 10 years, and the number of prosecutions would also increase.

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