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BaFin (in)dependence - a reform proposal

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  • Kaufhold, Ann-Katrin
  • Langenbucher, Katja
  • Blank, Patrick
  • Krahnen, Jan Pieter

Abstract

In this paper we put forward a legal argument in favour of granting more independence to BaFin, the German securities market supervisor. Following the Wirecard scandal, our reform proposal aims at strengthening the impartiality and credibility of the German supervisor and, as a consequence, at restoring capital market integrity. In order to achieve the necessary degree of democratic legitimacy for giving BaFin more independence and disassociating it from the Ministry of Finance, the paper sets out the necessary steps for a legal reform that creates accountability of BaFin vis-à-vis the Parliament, subjecting it to strict disclosure and reporting obligations.

Suggested Citation

  • Kaufhold, Ann-Katrin & Langenbucher, Katja & Blank, Patrick & Krahnen, Jan Pieter, 2021. "BaFin (in)dependence - a reform proposal," SAFE White Paper Series 82, Leibniz Institute for Financial Research SAFE.
    • Handle: RePEc:zbw:safewh:82
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    1. Martin Hellwig & Gerhard Schick, 2022. "Versagen und Reformbedarf der deutschen Finanzaufsicht," Working Papers 2, Forum New Economy.

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