The core of our compliance experts' consultancy services is

• Introducing effective compliance management systems, as well as verifying the effectiveness of these systems as per IDW PS 980.
• Supporting the compliance function in the implementation of the regulatory requirements for securities service institutions and capital management companies (capital market compliance)
• Quality assurance of the compliance organisation (Quality Review Compliance (QRComp)
• Support for the implementation of procedures for protection against money laundering, terrorist financing and other criminal offences, as well as auditing the same, and
• Support in implementing requirements relating to the appropriateness of remuneration systems as well auditing the same

Compliance management

As per § 25a para. 1 sentence 3 no. 3c) KWG, the compliance function is an integral part of an institution's internal control system. The specific tasks and responsibilities of the compliance function are defined in general terms in AT 4.4.2 MaRisk.

Other regulatory requirements include concretisations of the monitoring actions to be performed, or the required process integration of the compliance function, such as § 8 InstitutsVergV in terms of verifying compliance with the requirements for risk-oriented remuneration, or the integration with the new product process (AT 8.1 MaRisk) and analysing the impact of planned changes in operational processes and structures (AT 8.2 MaRisk).

In addition to the provisions of §§ 26 ff. KAGB, in particular the requirements of Article 61 of Level II VO apply to capital management companies.

The Regulatory Compliance specialist team at our Local Business Centre Banking and Financial Service Providers has successfully implemented numerous projects for establishing the compliance function as per § 25a paragraph 1 sentence 3 No. 3 c) KWG/AT 4.4.2 MaRisk for large to medium-sized credit and financial services; it helps you to individually implement the regulatory requirements and/or adapt compliance management systems.

Our services include in particular:

• Analysing the institution's specific compliance requirements, taking into account the existing or planned business activities, organisational structures and processes,
• Implementation and documentation of risk analysis as per AT 4.4.2 Tz. 2 MaRisk and deriving risk-orientated monitoring plans,
• Planning, implementation and documentation of self-assessments with the operational divisions in order to identify risks,
• Support in the planning, implementation and documentation of monitoring activities
• Analysis and optimisation of the internal controlling system (first- and second-level) to ensure adequate and effective compliance structures,
• Implementing a process for identifying and analysing the impact of new legal and regulatory requirements and stipulations
• Implementing a compliance framework (organisational policies, reporting)
• Assessing the adequacy, effectiveness and efficiency of the compliance management system (QRComp), taking into account the activities of other controlling functions and internal auditing,
• Holding training for employees of the compliance function.

Contact us We are always happy to provide you with details of our services and analyse possible areas of activity in collaboration with you in the scope of compliance workshops.

Capital market compliance

In comparison to the fairly clear-cut specifications in AT 4.4.2 MaRisk for the compliance function pursuant to KWG, the framework conditions for the compliance function as per § 33 para 1 sentence 2 no. 1 WpHG are ????MISSING???? by the concrete specifications in § 12 WpDVerOV and BT 1 MaComp as a consequence of the lessons learned and experiences gained by the banking supervisors during the financial market crisis, in particular in terms of investor protection aspects and customer interests, or avoiding conflicts of interest in the securities service industry or asset management.

In addition to the provisions of §§ 26 ff. KAGB, the requirements of Article 61 of the Level II Ordinance apply in particular to capital management companies, and – in a similar way to the rules of AT 4.4.2 MaRisk – need to be implemented individually due to the lack of granularity in Capital Transactions Tax Law (KVG) .

Since the introduction of MaComp in 2010 our team of Regulatory Compliance specialists has supported and accompanied the implementation of projects by domestic credit and financial services institutions, as well as by capital management companies of all sizes.

Our services include

• Establishment of compliance functions,
• Performing and documenting risk analysis as per BT 1.2.1.1 MaComp and deriving risk-based monitoring plans (BT 1.3.2.1 MaComp),
• Planning, implementation and documentation of self-assessments with the operational divisions
• Support in the planning, implementation and documentation of monitoring activities
• Planning, implementing and documenting on-site reviews of the compliance function at branch offices, and of tied agents, at home and abroad
• Analysis and optimisation of the internal controlling system (first- and second-level) in your securities services business and/or asset management,
• Implementing a compliance framework (organisational policies, reporting),
• Assessing the adequacy, effectiveness and efficiency of the compliance management system (QRComp), taking into account the activities of other controlling functions and internal auditing,
• Analysis and optimisation of the statutory reporting duties of the compliance function,
• Holding training for employees of the compliance functions.

Remuneration systems

In line with the CRD IV directive (Directive 2013/36/EC), institutions are obliged to make sound arrangements for governance and controlling. This includes effective methods for detecting, governing and monitoring present and potential future risks.

The requirements in terms of the appropriateness of remuneration systems primarily target avoiding negative incentives for employees to take disproportionate risks, as well as the failure to consider the client's interests or the interests of the institution.

For institutions subject to § 1 KWG these guidelines include both the statutory requirements pursuant to §25a para. 5 KWG (exceptions for financial services institutions in accordance § 2 para. 7 ff. KWG) and the provisions of InstitutsVergV and BT 8 MaComp (for securities service providers).

In OGAW and AIF management, capital management companies must consider § 37 KAGB and Art. 33 and 43 of the Level II Ordinance.

Details of the legal and regulatory requirements were provided by ordinance (EC) 604/2014, which defined quantitative and qualitative criteria for the identification of risk-takers, and the ESMA-guidelines for robust remuneration structures.

The major challenges in establishing remuneration systems for compliance with regulatory requirements relate in particular to the wording and implementation of qualitative criteria for identifying risk-takers and calculating variable compensation components

We are happy to support you in

• Implementing appropriate remuneration structures, taking the business and risk strategy into account,
• establishing procedures for identifying risk takers,
• wording quantitative and qualitative criteria for variable remuneration components,
• providing training for remuneration officers.

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