BaFin is Germany's primary financial regulatory authority. It operates with the goal of ensuring the functionality, stability, and integrity of the German financial system. This broad mandate includes overseeing and regulating various types of financial institutions, transactions, and infrastructures.
Key elements of the financial system that BaFin supervises include banks, financial services institutions, insurance companies, stock exchanges, and other financial market infrastructures. The organization is responsible for consumer protection as well as the prevention of market abuses such as insider trading and other forms of manipulation that can disrupt the fair and efficient functioning of markets.
BaFin uses a variety of regulatory and supervisory measures to carry out its mandate. It can conduct audits, require disclosures, enforce rules and laws, and, where necessary, take measures to prevent risks to the overall financial system.
As a regulatory authority, BaFin's role is crucial for maintaining trust and confidence in the financial system. By ensuring that the financial market participants follow the rules and regulations, it helps to foster a fair and transparent environment that supports the efficient operation of financial markets.
