The BaFin (German Supervisory Authority for the Financial Services) was founded on 1st May 2002. It was created on the basis of the Law on the Supervision of Financial Services (“Finanzdienstleistungsaufsichtsgesetz - FinDAG”) dated 22 April 2002. The Federal Supervisory Authority for Financial Services Industry combines under one roof the three former federal supervisory authorities for credit institutions (BAKred), the insurance industry (BAV) and securities trading (BAWe).
Thus, for the first time, Germany has a single state supervisory authority for credit institutions, financial-services providers, insurance enterprises and securities trading houses. This makes it possible to register and manage capital-market interdependencies, inter-company relationships and risks. In this way the Federal Supervisory Authority makes an important contribution towards the stability of the German financial centre and towards strengthening its competitiveness.