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News

BaFin sends representatives to flatexDEGIRO due to internal deficiencies

Friday 3 March 2023 11:26 CET | News

The German supervisory authority BaFin has announced that it intends to send a special representative to the Germany-based broker flatexDEGIRO. 

The reasons given are serious internal deficiencies in risk management and money laundering prevention. flatexDEGIRO is known for its cheap fees and user-friendly trading platform and currently has more than 2.2 million customers. The online broker flatexDEGIRO has been ordered by the financial services regulator BaFin to eliminate serious internal deficiencies in risk management and money laundering prevention. 


For this reason, the banking supervisory authority has now appointed a special representative to monitor the implementation of the requirements, which BaFin announced publicly on 24 February 2023. According to a flatexDEGIRO representative, the initial measures are currently being designed and implemented to remedy the deficiencies and the broker finds it helpful that BaFin has appointed a special representative to ensure close monitoring of the projects right from the start.

Not the first complaint about flatexDEGIRO by BaFin

In 2022, BaFin already required the company to ensure proper business organisation. In addition, they ordered temporary additional capital requirements. Over the course of 2022, flatexDEGIRO informed investors about the special audit by BaFin and the resulting requirements.

BaFin sends representatives to flatexDEGIRO due to internal deficiencies

At the beginning of February 2023, flatexDEGIRO Bank was fined EUR 1,050,000 by the supervisory authorities because the institute had violated banking supervisory regulations. According to IT Finanzmagazin, The flatexDEGIRO share lost around 6% percent as a result of the news.

BaFin’s reason for sending representatives

Proper business organisation at banks ensures compliance with legal regulations and business needs, the procedure for which is regulated by Section 25a (1). Effective money-laundering prevention and adequate risk management are essential components of a proper business organisation in order to ensure the ongoing risk-bearing capacity of banks. If BaFin finds that the business organisation of an institution shows deficits, it can take action. It is authorised to do so under section 25a (2) sentence 2 of the KWG.

About flatexDEGIRO’s trading offer

Vitrade, a brand of flatexDEGIRO, is a product for professional trading with customised platforms and individual tools for traders. The platform with direct stock exchange access is geared towards the needs of day traders and heavy traders. The HTX user interface can be freely configured and easily adapted to customers’ requirements. Special features and charting enable a fast response to market developments, supplemented by applications.

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Keywords: BaFin, trade finance, trading platform, banking, risk management
Categories: Banking & Fintech
Companies: flatexDEGIRO
Countries: Germany
This article is part of category

Banking & Fintech

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flatexDEGIRO

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