Federal Financial Supervisory Authority
(BaFin)Regulatory Snapshot
The Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) is Germany's integrated financial regulatory authority. Established in 2002 through the merger of three predecessor agencies, BaFin supervises over 2,700 banks, 800 financial services institutions, and 700 insurance companies, making it one of Europe's most significant financial supervisors.
About BaFin
The Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht, or BaFin) is Germany's unified financial regulatory authority, established on 1 May 2002. BaFin was created by merging the Federal Banking Supervisory Office, the Federal Securities Supervisory Office, and the Federal Insurance Supervisory Office into a single, comprehensive regulatory body. It is supervised by the German Federal Ministry of Finance.
Regulatory Framework
BaFin operates under the principles of solvency supervision and market supervision, with a strong emphasis on consumer protection. As a member of the European System of Financial Supervision, BaFin's regulatory framework is fully aligned with EU directives including MiFID II, allowing firms it regulates to passport their services throughout the European Economic Area. BaFin has taken a notably strict stance on retail CFD trading, banning products that carry additional payment obligations.
Investor Protection
Germany's deposit guarantee scheme protects deposits up to €100,000 per depositor. BaFin imposes rigorous capital adequacy requirements on all regulated institutions and maintains comprehensive consumer complaint handling processes. The authority actively publishes warnings about unauthorised firms and maintains a publicly accessible database of all licensed financial institutions.
- Deposit guarantee scheme — up to €100,000 per depositor
- Full MiFID II compliance across the European Economic Area
- Strict solvency and capital adequacy requirements
- Ban on marketing of CFDs with additional payment obligations to retail clients
| Instrument | Retail | Professional |
|---|---|---|
| Major Forex | 1:30 | 1:500 |
| Minor Forex | 1:20 | 1:400 |
| Gold | 1:20 | 1:400 |
| Indices | 1:20 | 1:400 |
| Shares CFDs | 1:5 | 1:200 |
| Crypto | 1:2 | 1:50 |
Passporting Regions
Restricted Countries
BaFin-regulated firms benefit from EU passporting across the EEA under MiFID II.
Body: German Federal Financial Supervisory Authority Complaints Office
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