Federal Financial Supervisory Authority

About BAFIN

The Federal Financial Supervisory Authority, known as BaFin, is Germany’s integrated federal financial regulator. It was established in May 2002 through the merger of the former federal supervisory authorities responsible for banking, insurance and securities trading. BaFin supervises banks, investment firms, financial services institutions, insurance companies, securities and derivatives markets, asset management companies, payment institutions and other regulated financial businesses in Germany. Banking supervision is carried out within Germany’s national framework and, where applicable, in cooperation with the European Central Bank and the Deutsche Bundesbank. Its statutory objectives include maintaining the proper functioning, stability and integrity of the German financial system and protecting the collective interests of consumers. BaFin carries out licensing, ongoing supervision, financial monitoring, conduct supervision, market-abuse investigations, anti-money-laundering oversight and regulatory enforcement. For forex and CFD services, firms providing regulated financial or investment services in Germany must hold the required authorisation or valid European cross-border permissions. BaFin supervises compliance with capital, organisational, conduct and client-protection requirements. Retail CFD providers must apply leverage restrictions, margin close-out protection, negative balance protection and standardised risk warnings. BaFin may restrict financial products, impose licence conditions, publish consumer warnings, order unauthorised activities to cease and take administrative enforcement action. Consumers may submit complaints to BaFin regarding supervised firms. BaFin uses complaints as part of its supervisory work, although it does not normally decide individual civil compensation claims. Eligible disputes may also be referred to an appropriate financial ombudsman or dispute-resolution body.