Volkswagen fined €1.2 million for disclosure failure

Germany's Federal Financial Supervisory Authority (BaFin) has imposed a €1.2 million fine on Volkswagen AG for failing to properly disclose its 2023 profit forecast. The regulator determined that the automaker failed to comply with European Union market abuse regulations by publishing market-moving information through a routine press release rather than the required immediate “ad hoc” announcement.

Under Article 17 of the EU Market Abuse Regulation, companies listed on German exchanges must disclose precise, non-public information that could significantly impact share prices without delay. BaFin concluded that Volkswagen’s positive 2023 outlook was sufficiently above analyst expectations to constitute inside information requiring formal, immediate disclosure to ensure all investors could make decisions on an equal footing.