Bafin's newly appointed leader commences duty.
New BaFin Chief Mark Branson Initiates Sweeping Reforms Following Wirecard Scandal
The Financial Market Integrity Strengthening Act (FISG) came into force on 1 July, marking a new era for the German Financial Supervisory Authority (BaFin) under its new president, Mark Branson. Branson, who assumed office on Monday, took over from Felix Hufeld, who stepped down at the end of March 2021.
Branson's arrival at BaFin follows extensive criticism of the authority in the Wirecard balance sheet fraud case. Olaf Scholz, the Finance Minister, announced a reorganization of the BaFin in response to the criticism.
In his new role, Branson has promised to significantly implement the reorganization targeted by Scholz. The new organizational statute of the BaFin grants its president stronger intervention rights in the future, a move aimed at improving the authority's oversight and credibility.
Branson, who led the Swiss financial supervisory authority Finma for seven years before taking up his post at BaFin, has a background in leadership roles at Credit Suisse and UBS. He believes the public pressure following the Wirecard scandal presents opportunities for change within the BaFin.
One of Branson's key initiatives has been to enhance BaFin's transparency. He aims to make the authority a world-class supervisory body, and this includes improving the way it communicates with the public and the media.
Branson has also focused on increasing BaFin's investigative powers. He aims to improve internal controls and staff expertise, and to intensify scrutiny of fintech and payment companies, sectors that were highlighted as areas of concern in the Wirecard case.
In addition, Branson is working to strengthen cooperation with other European and international regulators. He also aims to improve whistleblower protections within BaFin, a move that is expected to foster a culture of transparency and accountability.
These reforms are designed to address the institutional weaknesses exposed by the Wirecard scandal and to restore market trust. For the most current and detailed list of reforms, we recommend looking up recent official BaFin communications, credible financial news sources, or regulatory updates from 2021 onward.
The Bafin, under Hufeld's leadership, was generally considered too lenient in the Wirecard case. The reorganization of the Bafin has now been enshrined in a law, signalling a commitment to implementing the necessary changes to ensure the authority's effectiveness and integrity.
Other business sectors, particularly fintech and payment companies, will be under increased scrutiny by the reorganized BaFin to prevent future cases like Wirecard. Branson's finance reforms aim to make BaFin a world-class supervisory body with improved transparency and more effective investigative powers.
