FinDAG (Financial Services Supervision Act)
FinDAG is the German law that establishes BaFin and governs its organization, funding, and cooperation with other authorities.
Concept
The Financial Services Supervision Act (FinDAG) is the German federal law that in 2002 established the Federal Financial Supervisory Authority (BaFin) by merging the previously separate supervisory authorities for banking, insurance, and securities trading into an integrated cross-sector financial supervisor.
Regulatory Content
FinDAG governs in particular BaFin’s organization and legal status as a federal public-law institution, an overview of its responsibilities and powers, cooperation with the Deutsche Bundesbank and other domestic and foreign supervisory authorities, and BaFin’s funding, which is predominantly derived from levies on supervised undertakings.
Relationship to Sector-Specific Supervisory Laws
While FinDAG governs the institutional and organizational framework of supervision, the concrete substantive supervisory requirements for insurers arise from the respective sector-specific laws, particularly the Insurance Supervision Act (VAG); FinDAG thus forms the institutional basis on which BaFin exercises its supervisory activity under the substantive requirements of the VAG and other laws.