Financial Investment Brokers

Financial Investment Brokers

Following the entry into force of the Financial Investment Brokerage Ordinance (FinVermV) on 1 January 2013, each trader who holds a license as per § 34f GewO or § 34h GewO is obliged, as per § 24 FinVermV to have an audit performed by a suitable auditor in each calendar year and submit the original audit report by 31 December of the following year to the appropriate licensing authority. The scope of the mandatory audit results from the information, advisory and documentation requirements to be met by the financial investment broker (§§ 11 to 19 FinVermV) and other obligations existing beyond this (§§ 20 to 23 FinVermV). These duties have increased significantly compared with the previous legal situation and are intended to ensure compliance with consumer protection obligations. Compliance with the obligations must be demonstrated in the scope of the audit.

Tied representatives of sales ­companies have the option of submitting a system audit report­ instead of an individual audit report. This relief is dependent on the sales company ensuring the associated brokers' compliance with professional obligations as per §§ 12 to 23 FinVermV through an adequate and effective control system (ICS) and beyond this on the broker additionally submitting a statement in confirming that he/she exclusively worked for the audited sales company in the period under review.

BDO works with modern IT-based tools in the performance of audits as per § 24 FinVermV. Quality assured check lists and sample reports complement these applications and ensure an efficient, high-quality audit.

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