Some Seriously Regulated Forex and CFDs Brokers

BaFin Regulated Forex Brokers Rules

The “Federal Financial Supervisory Authority” or “Bundesanstalt für Finanzdienstleistungsaufsicht”, an autonomous federal supervisory body created under the “Financial Services and Integration Act” in 2002, is responsible for regulating banks, companies insurance and financial service providers such as Forex brokerage. companies, investment firms and financial advisers in Germany. In addition, the overall operation of “BaFin” is supervised by the German Federal Ministry of Finance. In 2002, three regulatory entities, namely “the Federal Office for Banking Supervision”, “the Federal Office for Supervision of the Securities Industry” and “the Federal Office for Insurance Supervision” were united to create BaFin. This unification placed all financial institutions such as banks, insurance companies, credit providers, brokerage firms and the stock markets under full regulatory oversight which oversaw all financial behavior related to Germany. BaFin’s priority is to ensure that the German economy remains secure, healthy and above all transparent. In addition, it strives to build investor confidence in market integrity. BaFin supervises many financial institutions, including 1,780 banks, 573 insurance companies, 676 financial service providers and much more in Bonn and Frankfurt am Main. BaFin ensures that banks and financial service providers are creditworthy enough to meet their obligations to their customers and treat them in accordance with standard codes of ethics to create a safe and trustworthy financial environment for investors.

To further protect investors, BaFin carefully monitors financial providers who do not have the appropriate authorization. The scope of its supervision extends to both issuers of financial services and customers. The former are checked for creditworthiness, product quality and fair dealing practices, while the latter are assured of sufficient confidence in the global financial system. To establish a stable and healthy market atmosphere, BaFin, under the Bank Act (KWG), is determined to uproot money laundering by using a centralized computer system to record all account data (including information from their owners) provided by all BaFin approved companies.

Financial and credit institutions (e.g. banks) are regulated in areas such as status and management capacity, credibility, capital requirements, etc. before receiving the license. BaFin also conducts regular surveys of these institutions to confirm their compliance with laws and regulations. Regulated companies, enterprises and financial investment organizations are required to submit their financial statements / audit registers, monthly internal transaction registers and solvency / liquidity status to BaFin. If the companies surveyed act outside the framework of laws and provisions, BaFin will treat them by sanctioning sanctions which, in serious cases, may even lead to the cancellation of the license. The same set of rules and regulations applies to all insurance companies, pension fund providers (also burial funds) and holding companies under BaFin regulation. BaFin’s valuations and valuations are in perfect harmony with the Deutsche Bundesbank. In addition, it aims to make the German markets a safe and secure environment for securities and derivatives in accordance with the Securities Trading Act (WpHG). In addition, BaFin must monitor financial crimes such as insider trading which could tarnish the reputation of the German markets. Its responsibilities also extend to monopoly matters, under the Securities Acquisition and Takeover Act 2002, when the ownership of one business is transferred or merged with that of another.