Germany’s Federal Financial Supervisory Authority (BaFin) has imposed administrative fines totalling €23.05m on Deutsche Bank for breaching regulations under the German Securities Trading Act.
The violations, primarily linked to the sale of derivatives, highlight significant compliance lapses within the bank’s operations, particularly at its Postbank branch.
The €23.05m fine includes €14.8m for derivatives sales violations, €4.6m for telephone recording failures, and €3.65m for account switching service breaches.
According to BaFin, investment service providers must maintain comprehensive compliance measures to ensure better service and minimise delays in addressing disruptions.
The fines stem from Deutsche Bank’s failure to adequately investigate and address issues related to the sale of currency derivatives in Spain.
Postbank, a branch of Deutsche Bank, failed to record telephone conversations related to investment services, a requirement reinstated after exceptions granted during the COVID-19 pandemic expired.
Also, Postbank faced issues with the account switching service under the German Payment Accounts Act, with numerous applications either unprocessed or delayed.
The compliance failures further contributed to the fines imposed by BaFin, and procedural shortcomings resulted in a portion of the fines levied against Deutsche Bank.
BaFin’s administrative fine proceedings addressed all three compliance issues.
Furthermore, the Spanish National Securities Market Commission (CNMV) also initiated proceedings against the bank, citing delays in resolving these compliance breaches.
