Volkswagen: Millions in fine for VW – alleged breach of reporting obligation

Frankfurt/Main. The German financial services regulator has fined Volkswagen millions for an alleged violation of publication obligations. VW AG should therefore pay 1.2 million euros, as Bafin announced.

VW's forecast for the 2023 financial year was well above market expectations. According to the Bonn authority, the business development reflected in this should have been reported immediately on an “ad hoc” basis - i.e. in a particularly conspicuous manner for market participants on the financial markets. However, the company only published this insider information in a press release.

VW can still appeal against the fine. A statement from VW was initially not available in the morning.

In Germany, listed companies are subject to the so-called ad hoc disclosure requirement. This means that non-public insider information that could have a significant impact on the share price must be published immediately (“ad hoc”). According to Bafin, this also includes a significant deviation of the business figures from market expectations.

The ad hoc disclosure requirement is part of the Market Abuse Regulation. If a company violates this, Bafin can punish this with a fine of up to a maximum of 2.5 million euros or up to two percent of sales.

According to Bafin, the fine was set on October 1st. On March 3, 2023, Volkswagen surprised investors during ongoing trading with an optimistic outlook for the year. The VW share listed in the Dax skyrocketed by more than 10 percent that day.