What is Bafin
Bafin is the financial regulatory authority of Germany. Bafin, also known as the Federal Financial Supervisory Authority of Germany, is an independent federal institution that falls under the supervision of the Federal Ministry of Finance.
To learn more about being regulated by Bafin, please view our Germany Broker License page. Otherwise, you can Contact DeltaQuest for detailed advice and guidance in relation to the financial regulatory authority’s requirements.
The financial regulatory body Bafin
Bafin is the financial regulatory body that supervises all financial activity within Germany. This includes the activity of brokers, banks, credit institutions, financial services companies and stock exchanges. Bafin supervises around 2700 banks and 800 financial services institutions throughout Germany.
After the passing of the Financial Services and Integration Act, Bafin was formed in 2002, with the intention of providing uniform national supervision of all financial services companies within Germany. This ensured the avoidance of any previous ambiguity, and enabled the fluid manageability and regulation of all financial activity.
In 2003 Bafin was given the responsibility to monitor the credit worthiness of financial institutions, by collecting detailed information from those institutions. The primary function of Bafin is to ensure that all financial institutions have adequate capital in place, to enhance and maintain the reputation of Germany’s financial system, and to increase overall customer protection.
In relation to forex, this regulatory authority is required to ensure the functioning of the German markets in agreement with the Securities Trading Act. The act also aims to ensure that no insider trading activity occurs illicitly.
If a forex company is not based in Germany but wishes to be regulated by Bafin, it may do so provided the company acts in compliance with the German financial supervisory authority.
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