Wirecard Scandal lays bare the need for trading restrictions for BaFin employees
Today European Investors-VEB addressed a letter to German vice chancellor and finance minister Olaf Schulz. The reports over the weekend of BaFin staff transacting in Wirecard shares, cause huge indignation and European Investors-VEB strongly feels this calls for decisive and drastic action.
Investigation into Wirecard transactions by Bafin Employees
European Investors-VEB wishes that the competent German state agencies undertake action promptly, incisively and exhaustively to investigate and bring to light any and all transactions in Wirecard securities of whatever nature, made by BaFin employees from the precise moment BaFin took up its market manipulation investigation, which moment is supposedly as early as January 2019.
It’s of the utmost importance to ensure that BaFin employees who were involved in matters around Wirecard, didn’t have any personal, financial or business interest in Wirecard.
Trading restrictions for BaFin employees
Second, BaFin being the lead regulator for German market oversight, certain trading restrictions should apply to BaFin employees. This would serve the interest of fair and orderly markets. This is even more indispensable in view of the increasing powers for BaFin, envisioned in the proposals from the Ministry of Finance. These restrictions could be similar to those in other major markets and to those applicable at the Bundesbank and the ECB.
Thus, European Investors-VEB wishes to see German binding regulation addressing a categorical ban on dealing in any securities listed on any German trading platform or issued by any German company under BaFin’s supervision by BaFin employees. Such regulation to be promulgated and taking effect promptly.