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How financial asset brokers and issuing houses optimize their sales processes in the digital age

SMARTeFunding@Brokerage

How professionals broker financial investments today!

Whether brokering investments, securities, or AIFs, financial investment brokers and issuing houses are constantly confronted with new compliance requirements. In times of digital transformation, this industry must undergo a change process to ensure its competitiveness.
Around 38,000 commercial financial investment brokers and financial investment advisors are currently still subject to 34f and §34h of the German Trade, Commerce and Industry Regulation Act (GewO) and the Financial Investment Brokerage Ordinance (FinVermV) in their activities and broker financial investments offered largely via the physical route.
In addition to the government draft of March 11, 2020, which has not yet been finalized, according to which the previous regulations in the GewO and the Fin VermV are to be incorporated requirements, the new Financial Investment Brokerage Regulation (FinVermV) has also applied to this professional group since August 1, 2020. Thus, financial investment intermediaries already have extended requirements and thus higher documentation and administrative expenses, e.g. due to a:
Higher information requirements before the conclusion of a contract
Greater cost transparency, similar to that required of BaFin-supervised financial services institutions
Extended taping obligations via telephone brokerage and advisory meetings as well as other electronic communication with the investor about specific investments
Internet service platforms that do not provide investment brokerage by telephone or via other electronic correspondence, but instead exclusively use purely digital and fully automated processes for brokerage, are exempt from this new taping requirement.
Conclusion: Regardless of whether it is the ever-increasing compliance requirements for financial investment brokers of their eventual transfer of supervision to BaFin – the effort required for legally compliant documentation and management of a financial investment brokerage is increasing.
For all those financial investment brokers who do not seek refuge under a liability umbrella, this means higher costs due to more obligations, possibly increased controls by BaFin, and, in the event of violations, increased liability risk.
Alternatively, digital financial brokerage processes offer inevitable solutions! Use the current situation as an opportunity and digitalize your sales process with our SMARTeFunding@Brokerage processes based on our SMARTeFunding@Software-as-a-Service (SaaS) solutions.
Simply broker selected financial products online in your branding with SMARTeFunding@Brokerage processes already provided by well–known issuing houses, such as FIM Immobilien Alpha Holding GmbH, to broker their financial products.
With our SMARTeFunding@Brokerage process, you can also connect tipsters, such as insurance brokers according to 34d of the Trade Regulation Act (GewO) or online marketers, etc. through the automatic allocation of personalized RefLinks (advertising links). These then receive, via a user–friendly Affiliate Partner Cockpit, a data protection-compliant overview of their referrals.
Please also look at the article on this topic: Affiliate marketing – an important component in the marketing mix for crowd investing offers.
And follow us on social media – stay informed!

Whether brokering investments, securities, or AIFs, financial investment brokers and issuing houses are constantly confronted with new compliance requirements. In times of digital transformation, this industry must undergo a change process to ensure its competitiveness. Around 38,000 commercial financial investment brokers and financial investment advisors are currently still subject to 34f and §34h of the German Trade, Commerce and Industry Regulation Act (GewO) and the Financial Investment Brokerage Ordinance (FinVermV) in their activities and broker financial investments offered largely via the physical route. In addition to the government draft of March 11, 2020, which has not yet been finalized, according to which the previous regulations in the GewO and the Fin VermV are to be incorporated requirements, the new Financial Investment Brokerage Regulation (FinVermV) has also applied to this professional group since August 1, 2020. Thus, financial investment intermediaries already have extended requirements and thus higher documentation and administrative expenses, e.g. due to a: Higher information requirements before the conclusion of a contract Greater cost transparency, similar to that required of BaFin-supervised financial services institutions Extended taping obligations via telephone brokerage and advisory meetings as well as other electronic communication with the investor about specific investments Internet service platforms that do not provide investment brokerage by telephone or via other electronic correspondence, but instead exclusively use purely digital and fully automated processes for brokerage, are exempt from this new taping requirement. Conclusion: Regardless of whether it is the ever-increasing compliance requirements for financial investment brokers of their eventual transfer of supervision to BaFin – the effort required for legally compliant documentation and management of a financial investment brokerage is increasing. For all those financial investment brokers who do not seek refuge under a liability umbrella, this means higher costs due to more obligations, possibly increased controls by BaFin, and, in the event of violations, increased liability risk. Alternatively, digital financial brokerage processes offer inevitable solutions! Use the current situation as an opportunity and digitalize your sales process with our SMARTeFunding@Brokerage processes based on our SMARTeFunding@Software-as-a-Service (SaaS) solutions. Simply broker selected financial products online in your branding with SMARTeFunding@Brokerage processes already provided by well–known issuing houses, such as FIM Immobilien Alpha Holding GmbH, to broker their financial products. With our SMARTeFunding@Brokerage process, you can also connect tipsters, such as insurance brokers according to 34d of the Trade Regulation Act (GewO) or online marketers, etc. through the automatic allocation of personalized RefLinks (advertising links). These then receive, via a user–friendly Affiliate Partner Cockpit, a data protection-compliant overview of their referrals. Please also look at the article on this topic: Affiliate marketing – an important component in the marketing mix for crowd investing offers. And follow us on social media – stay informed!

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