BaFin, Germany’s Federal Financial Supervisory Authority, has prohibited GoldRock Industries Ltd. from offering shares to the public, citing the company’s failure to publish an approved securities prospectus required under German and EU law. The enforcement action, announced following an investigation into unauthorized share offerings in Germany, takes immediate effect despite remaining subject to appeal.
- Violation Date: 16 September 2026, when BaFin first identified indications of unauthorized public offerings
- Regulatory Requirement: Securities prospectus must be approved by BaFin before a public offering under the German Securities Prospectus Act (WpPG) and EU Prospectus Regulation
- Penalties for Violations: Fines up to €5 million or 3% of previous year’s total revenues; additional penalties up to twice the economic advantage gained from the breach
During the prospectus approval process, BaFin verifies that minimum legally required information is included and that the prospectus content is understandable, coherent, and consistent. However, the regulator does not assess the accuracy of information, evaluate issuer integrity, or review the financial product itself. Responsibility for accuracy and completeness rests with offerors and issuers under sections 9 and 10 of the WpPG.
BaFin has advised consumers to base all securities investment decisions solely on legally mandated disclosures provided by offerors. Investors seeking verification of approved prospectuses can consult the regulator’s official prospectus database on the BaFin website. Violators face liability under section 14 of the WpPG, with penalties potentially reaching twice the economic benefit obtained through non-compliance.
