The German financial regulator BaFin has ordered the Swiss asset manager Meier + Partner to immediately cease its investment brokerage and advisory activities in Germany. According to a statement from BaFin, the company was providing these services without the necessary authorization.

The financial service provider had recommended the purchase of certain stocks to clients in Germany. Additionally, the asset manager offered to inform its clients about advantageous opportunities to sell these stocks at a later stage.

Severe Fines Threatened

According to BaFin, the Swiss asset manager did not have the required authorization for these activities.

In Germany, securities cannot be publicly offered without the publication of a prospectus that has been approved by BaFin.

A violation of this prospectus requirement can result in a fine of up to five million euros or three percent of the company's total turnover in the previous financial year. Fines can also be imposed up to twice the economic benefit gained from the violation.