BaFin, Germany’s Federal Financial Supervisory Authority, has determined that Greenchild LLC has offered an investment product to the public without publishing a required prospectus, violating Section 6 of the German Capital Investment Act (Vermögensanlagengesetz).
- Regulatory requirement: Capital investments offered publicly in Germany must have a BaFin-approved prospectus
- BaFin’s approval scope: Checks for minimum required information, understandability, coherence, and consistency, but not accuracy of content or issuer reliability
- Issuer responsibility: Investment product issuers are liable for the accuracy of prospectus information
- Verification method: Investors can check approved prospectuses through BaFin’s online database
German law mandates that any entity offering capital investments to the public must first obtain an approved prospectus from BaFin. During the approval process, the regulator verifies that the document meets statutory information standards and presents its content in a clear, coherent manner. However, BaFin explicitly does not validate the factual accuracy of prospectus claims, assess the reliability of issuers, or evaluate the underlying investment product itself.
Investment issuers bear full responsibility for ensuring the accuracy and completeness of information disclosed in their prospectuses. BaFin maintains a public database of filed prospectuses, allowing investors and market participants to verify whether an investment offering has received regulatory approval before purchase.
The enforcement action against Greenchild LLC underscores BaFin‘s continued monitoring of unauthorized capital investment offerings in the German market.
