Law on the supervision of financial stability (Financial Stability Act-FinStaff)

Unofficial table of contents

FinStabG

Date of completion: 28.11.2012

Full quote:

" Financial Stability Act of 28 November 2012 (BGBl. 2369), as last amended by Article 2 (36) of the Law of 1 April 2015 (BGBl. I p. 434).

Status:

Last amended by Art. 2 sec. 36 G v. 1.4.2015 I 434

For more details, please refer to the menu under Notes

Footnote

(+ + + Text evidence from: 1.1.2013 + + +) 
  
The G was referred to as Article 1 of G v. 28.  11.2012 I 2369 of the Bundestag   
decided.  It's gem.  Art. 5 Abs 3 of this G entered into force on 1 January 2013.   

Unofficial table of contents

Content Summary

§ 1	Safeguarding financial stability
§ 2	Committee on Financial Stability
§ 3	Warnings and recommendations
§ 4	Cooperation with the European Systemic Risk Board
§ 5	Cooperation between the German Bundesbank and the Bundesanstalt
§ 6	Reporting obligations; Regulation empowerment
§ 7	Confidentiality of Obligations

Unofficial table of contents

§ 1 Maintenance of financial stability

(1) The Deutsche Bundesbank shall contribute to maintaining the stability of the financial system (financial stability) in the country, in particular by:

1.

analysis of financial stability analyses and identifies risks which may affect financial stability;

2.

prepare annually a report on the situation and development of financial stability and make available to the Committee on Financial Stability in order to fulfil its reporting obligation pursuant to Article 2 (9),

3.

the Committee on Financial Stability shall propose the delivery of warnings in accordance with Article 3 (1) and recommendations pursuant to Article 3 (2); and

4.

evaluate the implementation measures in accordance with § 3 (4) sentence 2 and inform the Committee on Financial Stability of their assessment.

(2) The powers of the Deutsche Bundesbank according to other regulations shall remain unaffected. § 12 of the Act on the Deutsche Bundesbank shall apply accordingly. Unofficial table of contents

§ 2 Committee on Financial Stability

(1) In order to strengthen cooperation in the field of financial stability, a Committee on Financial Stability shall be formed at the Federal Ministry of Finance. (2) The tasks of the Committee on Financial Stability shall include in particular:

1.

the discussion of the facts relevant to financial stability;

2.

the strengthening of cooperation between the institutions represented in the Committee in the event of a financial crisis,

3.

advice on the handling of warnings and recommendations of the European Systemic Risk Board,

4.

an annual reporting to the German Bundestag in accordance with the provisions of paragraph 9 and

5.

the issuing of warnings and recommendations pursuant to § 3 (1) and (2) as well as their publication in accordance with § 3 (6).

(3) The Financial Stability Board shall consist of:

1.

three representatives of the Federal Ministry of Finance, one of whom will be appointed as Chairman and one as Vice-Chairman of the Committee,

2.

three representatives of the Deutsche Bundesbank and

3.

three representatives of the Bundesanstalt für Finanzdienstleistungsaufsicht (Federal Institute for Financial Services Supervision).

The Chairman of the Management Committee of the Federal Financial Market Stabilisation Institute shall be a member of the Committee as an advisory member without the right to vote. For each representative, the aforementioned institutions shall also appoint a deputy. (4) The Committee on Financial Stability shall be convened once in the quarter by the Chairman. Any Member may, for important reasons, request the short-term convening of the Committee. Meetings may be consulted by the Chairman of the Committee. The Committee shall adopt its Rules of Procedure by common accord. (5) Decisions of the Committee on Financial Stability shall, unless otherwise specified, be adopted by a simple majority. Decisions on warnings and recommendations and their publication in accordance with Article 3 (6) are to be taken unanimously, decisions on the draft report under paragraph 9 shall be adopted unanimously. Decisions in accordance with the second sentence cannot be taken against the votes of the representatives of the Deutsche Bundesbank present. (6) The deliberations of the Committee on Financial Stability shall be confidential. A limitation of the general reporting of the Committee and its members on the meetings and the work of the Committee is thus not connected. (7) The first sentence of Article 9 (1) of the Banking Act, in § 8 (1) of the German Banking Act (Kreditwesengesetz). Securities trading act, in § 27 (1) of the Securities Prospectus Act, in § 9 paragraph 1 of the Securities Acquisition and Takeover Act, in § 4 paragraph 1 of the Assets Act, in § 84 (1) sentence 1 and 2 of the Insurance Supervision Act, in § 6 of the Payment Services Supervisory Act, in § 8 of the capital investment code, in § 32 of the Law on The Deutsche Bundesbank and persons named in Section 3b (1) of the Financial Stability Fund Act are exempt from their respective confidentiality obligations for the performance of tasks in the Committee on Financial Stability. (8) The Chairman of the Steering Committee of the Federal Financial Market Stabilisation Agency informs the Steering Committee within the meaning of Section 4 (1) sentence 2 of the Financial Market Stabilisation Fund Act; in particular, it informs the Steering Committee regularly on the development of financial stability and on the decisions and (9) The Committee on Financial Stability shall report annually to the German Bundestag on the situation and development of financial stability and on its activities under this Act. (10) The Committee on Financial Stability shall report annually to the German Bundestag on the situation and development of financial stability. The committee shall be represented by the chairman and by his deputy in the event of the latter's prevention. Unofficial table of contents

§ 3 Warnings and recommendations

(1) The Committee on Financial Stability may, in warnings to a specific addressee, indicate risks which may affect financial stability. (2) The Committee on Financial Stability may, in recommendations to a particular addressee, identify those measures whose implementation by the addressee considers appropriate and necessary for the purpose of: (3) Address of a warning or a recommendation can be the Federal Government, the Federal Institute or any other public body within the country. (4) The addressee of a recommendation has the Committee on Financial Stability inform, within a reasonable period of time, the manner in which it intends to: To implement the recommendation. It shall keep the Committee regularly informed of the state of implementation. If the addressee intends not to implement a recommendation, he shall give a detailed explanation of this. (5) If the Committee on Financial Stability finds that its recommendation has not been followed by a public body in a country or that it does not comply with the recommendation, it shall not be (6) The Committee on Financial Stability may publish the warnings and recommendations, and the Committee on Financial Stability may publish the appropriate grounds for its non-action. The intention of the publication of a recommendation is to inform the respective addressee in advance and to give an opinion on that occasion. Unofficial table of contents

Section 4 Cooperation with the European Systemic Risk Board

(1) The Financial Stability Board shall cooperate closely with the European Systemic Risk Board and, where necessary, with the authorities of the other Member States of the European Union responsible for maintaining financial stability. (2) The Committee on Financial Stability may exchange information with the European Systemic Risk Board and, where necessary, with the authorities of the other Member States of the European Union responsible for the maintenance of financial stability, in so far as these are needed for the maintenance of financial stability. (3) The The Committee on Financial Stability shall inform the European Systemic Risk Board of its warnings and recommendations. To the extent that warnings or recommendations are likely to have a significant cross-border impact, the Committee on Financial Stability shall inform the European Systemic Risk Board before issuing the warning or recommendation. Unofficial table of contents

§ 5 Cooperation of the Deutsche Bundesbank with the Bundesanstalt

(1) The Deutsche Bundesbank and the Bundesanstalt have all information, in particular observations, findings and assessments, to be communicated by the Federal Agency for the performance of their respective supervisory tasks and on the part of the Deutsche Bundesbank shall be required to perform its tasks in accordance with this Act. The Bundesanstalt and the Deutsche Bundesbank agree on the details of the transmission of this information by common accord. The first sentence of Article 9 (1) of the Banking Act, in Section 8 (1) of the Securities Trading Act, in Article 27 (1) of the Securities Prospectus Act, in Article 9 (1) of the Securities Acquisition and Takeover Act, in § 4 (1) of the German Securities Trading Act (Securities Trading Act) Property law, in § 84 (1) sentence 1 and 2 of the Insurance Supervision Act, in § 6 of the Payment Services Supervisory Act, in § 8 of the capital investment code, in § 32 of the Act on the Deutsche Bundesbank and persons mentioned in § 7 of the Act on the German Federal Bank of Germany and the German Federal Bank of Germany shall be exempted from their respective confidentiality obligations. (2) The exchange of information referred to in paragraph 1 shall be shall include the transmission of personal data which is mandatory for the purpose of fulfilling the tasks of the receiving body referred to in the first sentence of paragraph 1. In order to carry out the tasks referred to in the first sentence of paragraph 1, the Bundesanstalt and the Deutsche Bundesbank may agree that the data stored at the other place may be retrieved in the automated procedure. In addition, Section 7 (4) and (5) of the Banking Act shall apply accordingly. Unofficial table of contents

§ 6 Obligations of notification; Regulation empowerment

(1) Financial corporations as defined in Annex A, Chapter 2, point 2.32 to 2.67 of Council Regulation (EC) No 2223/96 of 25 June 1996 on the European system of national and regional accounts in national and regional accounts the European Community (OJ L 327, 1), the Deutsche Bundesbank shall, upon request, inform the Deutsche Bundesbank of the economic and trade data it needs in order to carry out its tasks as set out in this Act. Economic and trade data within the meaning of the first sentence are all data which allow in-depth insights into the situation and the development of the economic circumstances of the financial corporations and their commercial activities. These data include, in particular, balance sheet figures, information on non-balance-sheet activities on both individual and corporate levels, information on the group structure and structure data, information on bilateral networking and on the Risk management as well as solvency and liquidity figures. This data may also include personal data to the extent that this is absolutely necessary for the performance of the tasks specified in this Act. The Deutsche Bundesbank only requests the data if it cannot also obtain it through an exchange of information with other authorities. The request must be made in writing and must specify the legal basis, the data to be transmitted and the purpose of the data collection, as well as to set a reasonable time limit for the transmission. (2) The Federal Ministry of Finance has in agreement with the Deutsche Bundesbank, by means of a regulation which does not require the consent of the Federal Council, to name the data which the Deutsche Bundesbank is to be able to collect pursuant to paragraph 1. In particular, more detailed provisions should be laid down in the regulation on

1.

the county of the persons responsible for the respective data,

2.

the nature, scope, timing and format of the data, the permissible data carriers, transmission routes and data formats, and

3.

the details of the collection, processing and use of personal data, as well as the deadline for the erasure or anonymization of personal data.

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§ 7 Obligation of Confidentiality

The members of the Committee on Financial Stability and Persons serving the institutions represented in the Committee on Financial Stability shall take action in order to implement this Act, as well as persons pursuant to Article 2 (4) sentence 3. any facts which have become known to them in the course of their activities, the secrecy of which is in the interests of a third party, in particular commercial and industrial secrets, shall not be disclosed or used unauthorised, even if they are no longer in service or are not in service, activity or membership of the Committee on Financial Stability. This shall also apply to other persons who, by means of official reporting, are aware of the facts referred to in the first sentence. In addition, Section 9 (1) sentences 4 to 8 and 2 of the Banking Act shall apply accordingly. The first sentence of Article 2 (6) remains unaffected.