A number different bodies support and advise BaFin in its work and oversees its activities. The first and foremost among these is BaFin's Administrative Council (Verwaltungsrat), which – in addition to other functions - oversees the management of BaFin. Then there are the mainly advisory functions performed by various advisory councils, whose expert representatives assist BaFin in such matters as the further development of supervisory law.
BaFin Administrative Council
The Administrative Council monitors the management of BaFin and supports BaFin in the performance of its supervisory functions. In addition, it is responsible for deciding on the budget of BaFin, which is funded completely by the companies it supervises and is thus not covered by the federal government's budget.
The Advisory Board is responsible for advising BaFin on issues related to its supervisory duties. Furthermore, it assists BaFin in the further development of supervisory principles.The Advisory Board is responsible for advising BaFin on issues related to its supervisory duties. Furthermore, it assists BaFin in the further development of supervisory principles.
Consumer Advisory Council
The Consumer Advisory Council is responsible for advising BaFin on issues related to its supervisory duties from a consumer’s perspective. The Consumer Advisory Council collects, analyses and reports to BaFin data relating to current developments in the banking and insurance businesses and in the areas of financial services and financial instruments (“consumer trends”).
Financial Stability Committee
The key task of the Financial Stability Committee is to regularly discuss the matters of decisive importance for financial stability based on analyses of the Bundesbank, to issue warnings of risks when these are identified and to make recommendations on how to prevent such risks. The Committee also discusses the warnings and recommendations of the ESRB. Another purpose is to strengthen cooperation among the institutions represented in the Committee in times of financial crisis.
Insurance Advisory Council
The Insurance Advisory Council addresses issues of insurance practice and provides advice to BaFin on the implementation and further development of supervisory law. Also, there are circumstances where the German Insurance Supervision Act (Versicherungsaufsichtsgesetz – VAG) provides that the Insurance Advisory Council must be consulted.
The Securities Council advises BaFin in matters of securities supervision, for example when it comes to issuing regulations or establishing guidelines. However, the Council may also submit proposals of its own concerning the development of supervisory practice.
The Advisory Council assists BaFin in monitoring corporate takeovers. It advises BaFin on issues related to takeover law, e.g. when it comes to issuing regulations for the supervisory activities of BaFin.
If BaFin issues an order in connection with a takeover, for example an official order prohibiting an offer, the parties involved in said takeover are entitled to lodge an objection with the Objections Committee.
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