The financial regulator, BaFin monitors the different sectors of the financial markets in Germany. It's aim is ensure stability and integrity in the market.
BaFin duties and activities
The German regulator aims to guarantee that banks, financial services institutions and insurance undertakings are meeting their payment obligations. Furthermore, the regulator attempts to protect investors by preventing activities of unauthorized businesses and imposing standards of professional conduct. Also, it is good to look at the regulator’s mission statement, as it sums up nicely their objectives:
“To ensure and promote the proper functioning, stability and integrity of Germany as a financial centre. Within the context of European integration and international cooperation as well as to strengthen collective consumer protection through its regulatory actions.”
On a daily basis, BaFin is actively monitoring the activities of institutions, insurance undertakings, pension funds. But the regulator also oversees the activities of the domestic investment funds and asset management firms. Moreover, under BaFin’s supervision there are approximately 800 financial services, 2,700 banks and 700 insurance firms.