Prohibition

Prohibition imposed by the supervisory authority and usually also publicly announced – of the activities of persons or companies on the financial market as a whole or in individual sectors or – of mergers and acquisitions that do not comply with the statutory provisions. – In Germany, a prohibition as defined in Section 37 of the German Banking Act (KWG) may be ordered by the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht). A prohibition order is a sovereign measure taken by an authority in the field of public law to regulate an individual case with direct legal effect on the outside, i.e. an administrative act that has the force of res judicata. – The individual prohibitions issued by BaFin can be viewed on its website. Unfortunately, however, dubious providers move their activities to offshore financial centers and are usually very difficult to locate even there. – See dismissal order, instruction, objections, supervisory, force majeure, International Business Company, measure in case of danger, sanction committee, warning, penalty payment, forced closure. – Cf. 2007 Annual Report of BaFin, pp. 194 f. (prohibitions in the sense of as well as the respective Annual Report of BaFin, chapter “Supervision of Securities Trading and Investment Business”; p. 212 (prohibition decisions in the sense of as well as the respective Annual Report of BaFin, chapter “Cross-Sectional Tasks”).