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BaFin reaffirms advice for investors to exercise caution with buy recommendations for shares

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Currently there could be cases in which investors receive recommendations for shares in companies professing to have the means to stop the spread of the corona (COVID-19) virus. Companies could also claim that they have or are able to market drugs or vaccines against the corona (COVID-19) virus. Persons publishing such recommendations might themselves be holders of some of the financial instruments being recommended. The persons behind the recommendations could profit if the prices of these shares increase in response to the recommendation.

Despite the requirement to disclose any conflicts of interest in the disclaimers, investors should always question the motives for publishing such reports. In addition, it is advisable to not only rely on individual information sources but to also obtain comprehensive information on the financial instruments concerned and their issuers.

Investors are requested to inform BaFin if they receive buy recommendations for shares and suspect that the information contained therein is exaggerated or misleading; investors who become aware of such recommendation should do likewise.