Volkswagen fined 1.2 million euros by BaFin for disclosure violations

The German financial regulator, BaFin, has imposed a fine of 1.2 million euros on Volkswagen AG for violating ad-hoc disclosure requirements. The penalty stems from the company's handling of its 2023 fiscal year forecasts, which significantly exceeded market expectations.

According to BaFin, the company failed to communicate this material insider information immediately through the required ad-hoc channels, opting instead to release the details via a standard press release. Under the Market Abuse Regulation, listed companies in Germany must promptly disclose non-public information that could significantly influence stock prices to ensure market transparency and equal access for investors.

Volkswagen has reached an agreement with BaFin to end the proceedings, though a company spokesperson noted that the firm maintains its position that its disclosures sufficiently informed market participants. The fine was officially set on October 1.