Erscheinung:23.05.2024 | Topic Measures Baader Bank AG: BaFin orders improvements in safe custody business
On 17 May 2024, BaFin ordered Baader Bank AG to clear delays in securities account transfers. In addition, the bank must take organisational measures to ensure that it can execute client orders promptly in future.
The order has not yet become final.
Baader Bank AG has already taken measures to improve its safe custody business.
Background information
Credit institutions must, by means of organisational measures, ensure that client orders can be promptly executed or transmitted to third parties (section 69 (1) of the German Securities Trading Act (Wertpapierhandelsgesetz – WpHG)). In an FAQ published on 21 March 2022 , BaFin made it clear that this requirement also applies to securities account transfers. As a rule, securities account transfers should not take longer than three weeks.
In the event of delays, the credit institution instructed by the client to carry out the transfer must inform the client within five working days following the end of this three-week period. The institution must also state the reason for the delay.
If the delay is due to organisational shortcomings, institutions must take suitable measures to remedy these shortcomings. BaFin monitors these measures.
