Audit of Institutions and Financial Service Providers
Annual audit according to the WpIG
Investment firms pursuant to Section 2 WpIG with a license according to Section 15 WpIG must comply with the provisions of the HGB and the RechKredV applicable to credit institutions for their annual financial statements and are considered large corporations for the purposes of the preparation and audit of their annual financial statements. This classification is made regardless of their size and activity.
Furthermore, they are obliged to fulfill regulatory requirements for business organization, particularly in the areas of compliance, IT risk management, own funds and liquidity, reporting, internal audit and prevention of money laundering. Compliance with these requirements is also subject to audit pursuant to Section 78 WpIG as part of the annual audit of the investment firm.
We have many years of experience in this area, including in dealing and communicating with the respective supervisory authorities. Against the background of increasingly strict and extensive requirements of the European and national supervisory authorities, we see our task as a consulting-oriented service to ensure your compliant processes.
We carry out statutory mandatory audits in compliance with the current legal and regulatory requirements. In doing so, it is taken into account that these activities are to be integrated into your daily processes and carried out efficiently.
WpHG Audit
Investment firms and securities service provider companies that offer investment services and ancillary investment services must comply with the conduct of business, organizational, and reporting/transparency requirements of the WpHG.
Compliance with the conduct of business and reporting requirements is subject to audit pursuant to Section 89 WpHG. Depending on the complexity of the business activities performed, this occurs on an annual or multi-year cycle.
One of our core competencies is the performance of audits in accordance with Section 89 WpHG. We are happy to support you.
Annual Financial Statements of Financial Services Institutions
Financial services institutions, like banks, must submit their audited annual financial statements and management report to BaFin and the Deutsche Bundesbank in accordance with Section 26 of the German Banking Act (KWG). Financial reporting must be carried out in accordance with the industry-specific requirements of the German Commercial Code (HGB) for institutions and the Bank Accounting Regulation (RechKredV), which also applies to financial services institutions.
Section 29 KWG defines the duties of the statutory auditor, which specifically include auditing the fulfillment of regulatory requirements by the institutions.
We possess extensive experience in auditing institution-specific financial reporting and regulatory requirements in the areas of compliance, risk management, and reporting.
Annual Audit for Registered AMCs (KVGs)
Asset Management Companies (KVGs) that are only subject to a registration requirement under Section 44 of the German Investment Code (KAGB) (so-called "small KVGs") must also undergo an annual audit, albeit with different focal points than fully licensed companies requiring a permit. We perform the audit of the annual financial statements for you, as well as the separate audit of compliance with conduct of business rules and money laundering prevention. Through our knowledge of BaFin's administrative practice, we know in detail which exemptions apply to you and where the supervisory authority nevertheless takes a close look. This enables us to conduct an efficient audit tailored to the structure of your KVG, providing you with full legal certainty without disproportionately taxing your resources.
Audit according to the FinVermV
Financial investment intermediaries licensed under Section 34f of the German Trade Regulation (GewO) are subject to specific regulatory duties under the Financial Investment Brokerage Regulation (FinVermV). They are permitted to provide investment advice and/or investment brokerage to their clients, but are subject to mandatory audit pursuant to Section 24 FinVermV.
We would be pleased to perform the audit according to Section 24 FinVermV and IDW Auditing Standard 840 "Audit of Financial Investment Intermediaries within the meaning of Section 34f GewO according to Section 24 para. 1 sentence 1 FinVermV" for you as a financial investment intermediary.
