Annual audit of
Efficient. Compliant. Precise. We conduct annual audits of securities institutions reliably and transparently.
Introduction / Overview
Small and medium-sized securities institutions are subject to annual audit requirements under the Securities Institutions Act (WpIG). This audit goes far beyond pure financial reporting. In addition to the balance sheet and income statement, supervisory requirements are also examined in detail.
We support you in keeping track – with an efficient, precise and compliant execution of your annual audit. Our approach combines deep expertise with clear processes, so you can both meet regulatory requirements and gain planning certainty.
Mandatory under WpIG
Annual audits are legally required for small and medium-sized securities institutions.
Clearly structured audit framework
Financial reports and supervisory requirements require a comprehensive audit.
Efficient and secure execution
Through established processes and regulatory expertise.
Personal support
Direct contact persons for smooth collaboration.
Legal Framework (WpIG / IFR / IFD)
Since June 26, 2021, a new supervisory framework has applied to securities institutions. The previously applicable regulations of the KWG and CRR have been replaced by the Investment Firm Regulation (IFR) and the Investment Firm Directive (IFD). In Germany, implementation is carried out through the Securities Institutions Act (WpIG).
The regulatory framework clearly distinguishes between credit institutions and securities institutions – with specific requirements depending on the business model and risk profile. As a result, the requirements are more targeted and differentiated than before.
WpIG
- Basis for the annual audit of securities institutions
- Defines audit scope, organizational obligations and capital requirements
- Contains, among other things, the rotation requirement (§ 77) and reporting obligations (§ 78)
IFR / IFD
- EU regulations that establish capital and risk requirements for securities institutions
- Supplement the national WpIG with Europe-wide uniform standards
- Focus: Proportionality and tailored supervision for institutions outside the traditional banking sector
New Regulations (from 2023/2024)
- WpIPrüfbV: Content, structure and scope of audits
- WpI-AnzV: Reporting and notification obligations (e.g. outsourcing, management changes)
- WpIVergV: Requirements for remuneration systems (fixed/variable, risk takers, appropriateness)
- WpI-InhKontrollV: Requirements for acquisition of participations
These regulations already apply from the 2023 fiscal year and affect all essential audit areas.
Special Features of the WpIG Audit
The annual audit under the WpIG is more demanding than a traditional company audit. It requires a deep understanding of regulatory requirements and your individual structures. We ensure that all legal, economic and organizational aspects are carefully reviewed.
1
Scope of the Audit (§ 78 WpIG)
We audit not only your financial statements, but also:
- Your economic circumstances
- Capital and liquidity requirements
- Implementation of organizational obligations
- Completeness of notifications to BaFin
This audit is legally required. The results are presented in an audit report.
2
New Audit Report Regulation (WpIPrüfbV)
Since December 12, 2023, the WpIPrüfbV regulates the content, structure and submission of audit reports. A key element is the qualitative assessment of findings, which creates additional transparency for institutions and supervisors. We ensure that your reports are complete, correct and compliant.
3
Notification and Reporting Obligations (WpI-AnzV)
Reporting obligations are an integral part of the audit. Institutions must promptly report outsourcing, management changes and relevant incidents. We check compliance with these obligations and help ensure deadlines are met.
Compensation Systems (WpIVergV)
The new remuneration regulation for securities institutions (WpIVergV) has been in force since January 2024 and particularly affects medium-sized institutions. It establishes clear rules for remuneration structures and risk takers. A transitional arrangement still applied for the 2023 fiscal year – from 2025 onwards, the audit of remuneration systems will be mandatory.
Fixed and variable remuneration
Remuneration models must be transparent, traceable and compliant with regulations.
Identification of risk takers
Institutions must clearly identify risk takers and align their remuneration system accordingly.
Transitional arrangement
A transitional period applied for 2023. From 2025 onwards, the audit will be mandatory.
Mandate Duration & Rotation Requirement (§ 77 WpIG)
According to § 77 para. 1 sentence 2 WpIG, a statutory rotation requirement of ten years applies to securities institutions. After that, the audit mandate must be terminated and reassigned – both for statutory audits and in the future for WpHG audits.
Practical consequences:
- Long-term mandate relationships automatically end after 10 years
- Planning the auditor change is required well in advance
- Goal: Strengthen independence and ensure audit quality
Your advantages with our expertise
The annual audit for securities institutions is complex and requires deep expertise. We combine regulatory expertise with efficient audit execution. You benefit from clear processes, direct communication and practical advice.
- Practical experience with regulated institutions
- Comprehensive knowledge of WpIG and EU requirements
- Precise, on-time execution
- Direct, personal contact persons
- Digital and efficient processes
- Early identification of optimization opportunities
THESE ARE YOUR CONTACTS
Justus Franke
Managing Director,
Auditor
Justus Franke is managing partner at ADVANTA. As an auditor and consultant, he supports financial institutions and companies in conducting annual audits as well as in auditing governance, risk and compliance structures.
Lena Franke
Managing Director, Auditor
Lena Franke is managing partner at ADVANTA. As an auditor and consultant, she is responsible for annual audits as well as the review and implementation of regulatory requirements with a focus on business strategy, risk management, credit and trading processes, and ESG requirements.
ADVANTA GmbH Wirtschaftsprüfungsgesellschaft is registered as a statutory auditor with the Chamber of Public Accountants.
