The Federal Institution for supervision of financial service (BaFin) became at the 1. May 2002 based as institution for successor of the BAKred (former Federal Supervisory Office for the credit system), the BAWe (Federal Supervisory Office for the securities trading) and the BAV (Federal Supervisory Office for insurance) on the basis of the "“law over the integrated supervision of financial service"” (FinDAG) from 22 April 2002.

With the establishment of the BaFin there is a uniform national supervision for all ranges of financing (all financial control) in Germany for the first time, in addition count credit institutes, institutes for financial service, insurance companies and securities trading enterprises.

The entwinements on the capital markets and the associated risks are to become thereby better detectable and manageable. The Federal Institution is to make so a contribution for stability and competitive ability of the Finanzplatzes Germany.

The BaFin is subject to on the right of and specialized supervision of the Federal Ministry of finances. It is a federaldirect, legally responsible institute of the public right with their head office in the federal city Bonn and a further service seat in Frankfurt/Main.

The BaFin busily approximately 1,500 coworkers and is financed completely by fees and reallocations of the supervised institutes and enterprises; it is independent thereby of the federal budget.

Of the BaFin about 2,400 credit institutes, approx. 800 institutes for financial service and approx. 700 insurance as well as the entire securities trading are supervised. (Conditions: April 2004).

Since in the middle of 2003 is the BaFin in addition responsibly for the account call procedure thus the enquiry option of account master data for prosecution authorities (account evidence center).

Organization

The BaFin is led by a family of five committee. The president, at present yokes Sanio, is represented by a vice-president, at present Karl Burkhard Caspari. Three directors for the ranges state supervision of the banks, supervision of insurance and supervision of security are subordinated to these. The members of the management commitee the individual specialized divisions are stored.

Individual tasks

The tasks of the BaFin lie in the following ranges:

State supervision of the banks

Apart from own examinations by the German Federal Bank, "§7 KWG are accomplished and in addition by chartered accoutant further examinations.

Goals of the supervision are:

• Insolvency protection, safety device of entrusted net assets and the solvency
• Sicherstellung of the own capital funds equipment for credit risks ("§"§10,10a KWG) as well as for operational risks to Basel II
• Structure and organization of a Risikocontrollings after the minimum requirements to the loan business

Beside monthly short balances (monthly documents of identification) messages are to be delivered to large and million-credits to certain dates by the credit institutes. These are evaluated of the BaFin in close co-operation with the Federal Bank.

Supervision of insurance

Here the fulfillableness of the obligations from insurance contracts on basis of the law of supervision of insurance (VAG) is supervised. The subject of the supervision are:

• Erstversicherungsunternehmen ("§ 1 VAG)
• ("§ 119 VAG)
• Holding companies ("§ 1 b VAG)
• The contingency fund ("§ 124 VAG)
• Pension fund ("§ 112 VAG).

Erstversicherungsunternehmen are also pension funds and burial funds.

The supervision takes place in particular via monitoring of the coverage of the safeguard ability, the and the laws, which in all other respects apply to the enterprise of the insurance transaction.

Supervision of security and eating management

The Federal Supervisory Office for the securities trading (BAWe) is one of the institutions, which are come up in the BaFin. The BaWe was created 1995, when insider trade and front Running were also legally forbidden. Banks announced all security purchases to the BaWe (and the successor organization BaFin) since 1995 as well as - sales. In addition the office receives everyone Ad-hoc to message. Due to the available data coworkers of the BaFin try to uncover all cases of abuse in the securities trading

This takes place through:

• Fight against
• Monitoring of the Ad-hoc-publicity
• Monitoring of the range Directors' Dealings, thus security business of members of the management of an enterprise in shares of this enterprise
• Pursuit of course and market price manipulation
• Creation of transparency of the market by publication of important right to vote portions
• It is also the central public trust office for the security sales folders
• Since in addition 2002 is supervised enterprise assumptions with quoted enterprises.

Related links

• Website of the Federal Institution for supervision of financial service (BaFin)
• Legal bases
• Data base of the BaFin to Directors' Dealings

Articles in category "Federal Institution for supervision of financial service"

We found here 6 articles.

Related Websites

We found here 3 related websites.

• Browse Topic: Financial Institutions
  banks, banking, and financial institutions; control of prices of commodities, rents and services; deposit insurance; federal monetary policy, including the ...


• Supervision of Financial Institutions
  The Banking Supervision & Regulation Department of The Federal Reserve Bank of ... the financial services industry and the Fourth Federal Reserve District. ...


• Untitled Document
  Supervision of financial institutions ... and communicating emerging risks within the financial services industry and the Fourth Federal Reserve District. ...