German regulator BaFin is parting ways with its executive director Beatrice Freiwald after a months-long legal dispute. The German government decided that she has to resign from BaFin‘s board of directors, the authority announced recently. The Wirecard investigation committee harshly criticized Freiwald. She was responsible for BaFin’s whistleblower unit, which did not adequately follow up on information from whistleblowers about Wirecard.
She was also blamed for handling private securities transactions by her employees. It is held responsible for the fact that compliance with the already quite permissive regulations was not checked properly before Wirecard’s collapse. In the meantime, the regulations have been tightened considerably.
Beatrice Freiwald considered her planned dismissal to be unlawful and therefore took legal action against it. However, the Berlin Administrative Court rejected her application for preventive legal protection. On August 30, the Higher Administrative Court of Berlin-Brandenburg rejected an appeal against this decision.
The Wirecard scandal had already cost former BaFin President Felix Hufeld and his deputy Elisabeth Roegele their jobs.
