(1) BaFin's staff may not, whether for their own account, for the account of another, or on behalf of another, carry out private financial transactions in financial instruments within the meaning of section 2(4) of the Securities Trading Act that are 1. admitted to trading on an organised market within the meaning of section 2(11) of the Securities Trading Act domestically, 2. issued by financial corporations within the meaning of the "Financial Corporations" sector (S.12) of Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union (OJ L 174, 26.6.2013, p. 1), as amended by Delegated Regulation (EU) 2015/1342 (OJ L 207, 4.8.2015, p. 35), with their seat or establishment in the European Union, or 3. issued by undertakings supervised by BaFin, or undertakings in whose group an undertaking is supervised by BaFin, or that relate to financial instruments under nos. 1 to 3. The first sentence does not apply to financial instruments under section 2(4), no. 2 of the Securities Trading Act, or to private financial transactions concluded for BaFin's staff by investment service providers within the framework of financial-portfolio management under section 2(8), first sentence, no. 7 of the Securities Trading Act.
(1a) The Ministry may, by statutory instrument not requiring the consent of the Bundesrat, determine which private financial transactions in crypto-assets within the meaning of Article 3(1), point 5 of Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets, and amending Regulations (EU) No 1093/2010 and (EU) No 1095/2010 and Directives 2013/36/EU and (EU) 2019/1937 (OJ L 150, 9.6.2023, p. 40), BaFin's staff may not carry out, whether for their own account, for the account of another, or on behalf of another, insofar as, on account of the nature of the transactions, the dealings or the activity, a conflict of interest through such private financial transactions is to be feared (trading bans). Such an instrument must provide for exceptions for private financial transactions concluded for BaFin's staff by commercial service providers within the framework of financial-portfolio management within the meaning of Article 3(1), point 25 of Regulation (EU) 2023/1114. The statutory instrument may provide that BaFin, or the person it engages, is empowered to issue guidelines giving further detail to the provisions made in the statutory instrument. The Ministry may transfer this authorisation, by statutory instrument, to BaFin.
(2) BaFin, or the person it engages, is empowered, by guidelines, 1. to prohibit, by way of derogation from subsection (1), trading in further financial instruments and further financial transactions, insofar as, on account of the nature of the transactions, the dealings and the activity, a conflict of interest through such private financial transactions is to be feared to a particular degree, or to determine exceptions for staff insofar as no conflict of interest through private financial transactions is to be feared, and 2. to provide for disclosure obligations for financial instruments under subsection (1), first sentence and crypto-assets under subsection (1a) that staff acquire before this provision enters into force or is first applied, or later without their own doing, and, by way of derogation from subsection (1), a requirement of prior approval for their disposal.
(3) BaFin must have appropriate internal control procedures suitable for counteracting infringements by BaFin's staff of the prohibitions under subsections (1) and (1a), or Article 14 of Regulation (EU) No 596/2014, or of the prohibitions under Article 89 of Regulation (EU) 2023/1114.
(4) Staff are obliged to notify BaFin, or the person it engages, without delay, in writing or electronically, of such transactions in financial instruments within the meaning of Article 2(1), first subparagraph of Regulation (EU) No 596/2014, and such acts and transactions within the meaning of Article 2(1), second subparagraph, first sentence of Regulation (EU) No 596/2014, that they have concluded for their own account, for the account of another, or on behalf of another. The obligation under the first sentence does not apply to private financial transactions concluded for staff by investment service providers within the framework of financial-portfolio management under section 2(8), first sentence, no. 7 of the Securities Trading Act. The Ministry may, by statutory instrument not requiring the consent of the Bundesrat, determine 1. which private financial transactions in crypto-assets within the meaning of Article 3(1), point 5 of Regulation (EU) 2023/1114 BaFin's staff, or the person it engages, must notify without delay, and 2. what exceptions from the notification obligation are permitted for staff who, on account of parental leave, secondment, release from duty or special leave, have no access to BaFin's premises and information-technology systems, whereby exceptions from the notification obligation are permitted at the earliest three months, generally six months, after access ceases. The statutory instrument may provide that BaFin, or the person it engages, is empowered to issue guidelines giving further detail to the first to third sentences. The Ministry may transfer this authorisation, by statutory instrument, to BaFin. BaFin, or the person it engages, may issue guidelines on the arrangement of the notification obligation, including involving supervisors.
(4a) BaFin, or the person it engages, may require staff to provide information and submit documents on such transactions in financial instruments within the meaning of Article 2(1), first subparagraph of Regulation (EU) No 596/2014, on such acts and transactions within the meaning of Article 2(1), second subparagraph, first sentence of Regulation (EU) No 596/2014, and on such private financial transactions under subsection (1), that they have concluded for their own account, for the account of another, or on behalf of another. Section 6(15) of the Securities Trading Act applies. BaFin, or the person it engages, may require staff to provide information and submit documents on such private financial transactions of theirs in crypto-assets under subsection (1a), concluded for their own account, for the account of another, or on behalf of another, insofar as this is necessary for BaFin's, or the engaged person's, review of conflicts of interest.
(5) BaFin must take appropriate internal precautions suitable for counteracting conflicts between staff's official activities and their private interests with regard to their private financial transactions. BaFin's staff are obliged to provide information and submit documents on financial instruments under subsection (1) and crypto-assets under subsection (1a) and further investment products under subsection (6), third sentence, no. 1, insofar as these obligations are not already contained in subsection (4) and this is necessary for BaFin's, or the engaged person's, review of conflicts of interest. The Ministry may, by statutory instrument not requiring the consent of the Bundesrat, determine that BaFin's staff are obliged, on taking up their activity and thereafter annually, to submit a declaration of interest containing particulars of the financial instruments under subsection (1) and crypto-assets under subsection (1a) and further investment products under subsection (6), third sentence, no. 1 that could give rise to concerns of a conflict of interest. BaFin, or the person it engages, is empowered to issue guidelines giving further detail to the provisions made in the statutory instrument. Section 6(15) of the Securities Trading Act applies.
(6) The Ministry may, by statutory instrument not requiring the consent of the Bundesrat, regulate the legal relationships of BaFin's staff insofar as the needs of an integrated financial supervisor with integrity so require, in particular to counteract market manipulation, insider dealing, the risk of bias in the performance of official duties, and the exploitation of official knowledge advantages for private purposes. In doing so, the requirements of European Central Bank Guideline (EU) 2021/2556 of 2 November 2021 laying down the principles of an Ethics Framework for the Single Supervisory Mechanism (OJ L 454, 17.12.2021, p. 21) are to be implemented accordingly. Provisions may be made on 1. the extension, restriction and arrangement of the prohibitions under subsection (1) in respect of the financial instruments concerned and further financial investment products, and 2. the imposition of sale obligations in respect of financial instruments under subsection (1) and crypto-assets under subsection (1a) and further investment products under subsection (6), third sentence, no. 1, insofar as this is necessary on account of the nature of staff's activity because of an actual or possible conflict of interest, having regard to BaFin's concerns, whereby the statutory instrument must lay down criteria ensuring a proportionate arrangement through prior examination of alternative measures and the grant of reasonable periods. The statutory instrument may provide that BaFin, or the person it engages, is empowered to issue guidelines giving further detail to the provisions made in the statutory instrument. The Ministry may transfer this authorisation, by statutory instrument, to BaFin.
(7) The statutory instrument under subsection (6) may provide, for BaFin's civil servants, that they require prior approval to carry out a secondary activity named in section 100(1), no. 2 of the Federal Civil Service Act, insofar as remuneration or a benefit in money's worth is provided for it.
Division Four
Budget, Accounting, Covering Administrative Expenditure