BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht) - a Federal Financial Supervisory Authority of Germany, which is the central supervisory authority for financial services in the market. Supervisory part of the Federal Government of Germany, and its functions and status defines the "Law on the Federal Financial Supervisory Authority" first.

In carrying out its oversight function, the BaFin is working closely with the German Federal Bank.

Management is independent of the federal budget, because its funding is through contributions and donations controlled organizations and enterprises.

Main priorities for BaFin are tasks to establish a reliable and open activities of organizations that provide financial services.

In addition, the Office is informing consumers by providing information on diverse products in the financial market, as well as explaining their rights and opportunities to defend personal interests in disputes and conflicts. Since BaFin shall issue permits for the provision of financial services, in the case of violations of unauthorized business or organization has the right to apply a variety of measures, including immediate liquidation.

Purpose and function of BaFin

  • providing a stable, consistent and reliable operation of the German financial system
  • licensing of financial activities
  • control over banks and other financial institutions, which implies solvency supervision - that is possible under the banks, financial institutions and insurance companies made by the payment obligations
  • maintaining investor confidence in financial markets, which is provided with the function of market surveillance - control over how to maintain professional conduct.
  • to protect the rights of investors BaFin is also working on the prevention of unauthorized financial business - insider trading, manipulation and market abuse
  • control over compliance with organizational requirements
  • monitoring of the financial statements of companies
  • research and analysis with the aim, among other things, to identify potential risks in the financial markets
  • protection of consumers and investors, where BaFin is not acting as arbitration, that is, cannot make binding decisions on specific cases
  • prevention of money laundering, terrorist financing