BaFin prohibits unauthorised participation certificate offering
BaFin prohibited Galldium Immobilien Fünfte GmbH from publicly offering participation certificates in AMAGVIK Int. AG for breaching the German Capital Investment Act (VermAnlG).
Enforcement action targets unapproved retail investment offerings under VermAnlG. Signals continued BaFin focus on unregistered capital investment schemes and prospectus compliance in the German retail market.
Unauthorised offering enforcement reinforces prospectus and distribution obligations relevant to wealth and retail investment platforms.
Action Required
Verify distribution and custody relationships for exposure to Galldium Immobilien Fünfte GmbH and AMAGVIK Int. AG securities.
Illustrates ongoing enforcement of VermAnlG rules and risk of unregistered product distribution.
Distribution due diligence risk. Review product approval and third-party issuer checks to prevent onboarding of unauthorised participation certificate schemes.
“BaFin prohibited Galldium Immobilien Fünfte GmbH from offering participation certificates in AMAGVIK Int. AG to the public after breaches of the German Capital Investment Act (VermAnlG).”