SAP Fined €1.75 Million by BaFin for Non-Compliance with German Securities Trading Act

Key Takeaways

• SAP SE Fined €1.75 Million: The company was penalized by BaFin for failing to announce when and where its 2022 annual and half-yearly financial reports were publicly available.
• Violation of German Securities Trading Act: SAP SE's failure to comply with the publication requirement contravenes the German Securities Trading Act (WpHG).
• Regulatory Obligation: Companies must disclose the publication date and website for their financial reports within four months after the end of the financial year to comply with the WpHG.
• BaFin's Enforcement Action: BaFin’s €1.75 million fine emphasizes the need for companies to adhere to financial reporting transparency and investor protection regulations.

Deep Dive

The Federal Financial Supervisory Authority (BaFin) has imposed a fine of €1.75 million on SAP, one of the world’s leading enterprise software companies. The fine stems from the company's failure to meet requirements under the German Securities Trading Act (Wertpapierhandelsgesetz – WpHG), specifically regarding the timely publication of key financial report information.

SAP was found to have contravened provisions requiring the company to announce the date and the website on which its annual financial report for the financial year 2022 was made publicly available. Additionally, the company neglected to publish a similar announcement regarding the half-yearly financial report for the same year.

While annual financial reports are accessible through the Company Register, German regulations mandate that companies disclose the specific date and website where these reports can be accessed. This requirement is aimed at ensuring transparency and providing investors with the necessary information to make informed decisions regarding their investments in publicly traded companies.

According to the Securities Trading Act, companies like SAP that are based in Germany and issue securities on organized markets are obligated to publish an announcement within four months after the end of the financial year. The announcement must specify the date and website where the annual financial report will be made publicly available. Failure to comply with this regulation can result in administrative fines, with BaFin having the authority to impose penalties up to €10 million or 5% of a company’s total revenue.

SAP’s non-compliance with the publication requirement led to the fine. BaFin’s enforcement action underscores the importance of transparency and timely financial reporting for public companies, particularly in the context of securities markets where such information is vital for investor decision-making.

The GRC Report is your premier destination for the latest in governance, risk, and compliance news. As your reliable source for comprehensive coverage, we ensure you stay informed and ready to navigate the dynamic landscape of GRC. Beyond being a news source, the GRC Report represents a thriving community of professionals who, like you, are dedicated to GRC excellence. Explore our insightful articles and breaking news, and actively participate in the conversation to enhance your GRC journey.