The Federal Financial Supervisory Authority (Bafin) today announced the imposition of administrative fines totaling €187,500 on Brown Capital Management LLC.

The fines were imposed due to the company’s failure to comply with obligations under the German Securities Trading Act (Wertpapierhandelsgesetz – WpHG). The company failed to submit voting rights notifications within the prescribed period.

The company may lodge an appeal against the administrative fine order.

Shareholders must notify the issuer and Bafin within four trading days if their voting rights meet certain thresholds.

If parties subject to the notification requirements fail to notify the issuer and Bafin within the prescribed period that their shares have reached, exceeded or fallen below certain thresholds, they contravene section 33 et seq. of the WpHG.

Bafin may impose administrative fines on persons that fail to comply with this obligation. For legal entities, this fine may amount to a maximum of €10 million or up to 5% of the company’s total turnover.