Securities Service Providers

Securities Service Providers

The regulatory for securities­ business are subject to permanent extension, not least due to the negative impact of the financial market crisis on consumer interests, and characterised in particular through the provisions for improving investor protection.

The central component of what is now European financial market regulation by the appropriate regulatory authorities, ESMA (European Securities and markets authority) and BaFin is the EU's Markets in Financial Instruments Directive (MiFID) from 21 April 2004.  This was enacted in national law through the Financial Markets Directive Implementation Act (FRUG) on 19 July 2007, essentially through an amendment of the German Securities Trading Act (WpHG) and supplemented by the ordinance clarifying the rules of conduct and organisational requirements for investment service providers (Investment Services Behaviour and Organisation Ordinance - WpDVerOV) of 20 July 2007.

The amendment of the EU financial markets directive (MiFID II) is intended to essentially contribute towards increasing market transparency and investor protection in addition to harmonising the regulatory regimes in the European Union. The regulations of MiFID II must be applied as a mandatory requirement as of January 2018.

Our audit and (audit-centric) consulting services relating to securities services businesses include:

  • Audits as per § 36 para. 1 and para. 4 WpHG
  • Certificates as per IDW PS 951 (type 2) on auditing of the service-related internal control system for creating information­ bulletins as per § 1 para. 3a WpHG
  • Special audits as per § 35 para. 1 WpHG by order of BaFin
  • Establishing and appraising the adequacy and effectiveness of the internal control system in accordance with § 33 para. 1 sentence 2 no. 1 WpHG in combination with § 12 WpDVerOV
  • Consultancy services in connection with the implementation of MiFID II and MiFIR
  • Establishment of the compliance function as per § 33 para. 1 sentence 2 no. 1 WpHG
  • Quality reviews for the compliance function (QRComp)
  • Education and training opportunities for investment consultants, sales personnel and staff of the compliance function

Our auditing and consultancy services are provided by experienced auditors and employees of the local business centre Banks and Financial Service Providers. We understand your services and products, as well as the requirements associated with them for your business, in terms of the adequacy, efficacy and effectiveness of the organisational structure and process organisation, and of the internal control system in terms of compliance with regulatory requirements.

Our clients include credit and financial services institutions, as well as securities trading banks of all sizes in Germany and abroad, whose business activities encompass all securities services or ancillary subsidiary securities services in accordance § 2 para. 3 and 3a of WpHG.

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