BaFin

Financing

BaFin must cover its expenditure entirely out of its own income. It receives no funding from the Federal budget. BaFin raises the funds required to cover its costs from the undertakings it supervises instead. The legal foundation for this is the Act Establishing the Federal Financial Supervisory Authority (FinanzdienstleistungsaufsichtsgesetzFinDAG).

Pursuant to section 13 (1) of the Act, BaFin's sources of funding consist primarily of:

  • Fees (section 14 of the Act);
  • Separate reimbursements (section 15); and
  • Contributions (section 16).

The actual amount of fees and contributions is calculated on the basis of the Ordinance on the Imposition of Fees and Allocation of Costs Pursuant to the FinDAG (Verordnung über die Erhebung von Gebühren und die Umlegung von Kosten nach dem Finanzdienstleistungsaufsichtsgesetz FinDAGKostV) and in accordance with special rules governing the charges to be applied by BaFin.

In certain circumstances the undertakings under BaFin's supervision may also incur other costs, the most important of which are described briefly below.

  • Firstly, these are "costs" in the wider sense. What is meant by this are any costs arising as a result of the execution of enforcement measures, especially coercive penalty payments, and the imposition of fines in the event of the unlawful carrying-on of business.
  • Secondly, undertakings must bear the costs arising as a result of accountants and other experts being called in or undertakings meeting their statutory disclosure and reporting requirements. However, these costs are not charged by BaFin but on the basis of a private-law agreement between the undertaking and the accountant(s) or expert(s) in each case. For that reason BaFin can provide no information on the amount of the charges that undertakings may expect to have to pay.
  • Finally, there are also the costs of the deposit protection schemes and compensation funds that credit institutions and financial service providers are required by law to be members of. These costs are not charged by BaFin either. If required, further information may be obtained on the websites of the Central Credit Committee (Zentraler Kreditausschuss – www.zka.de) and the Compensatory Fund of Securities Trading Companies (Entschädigungseinrichtung der Wertpapierhandelsunternehmen – www.e-d-w.de).

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