Bad news from the Frankfurt online broker Flatexdegiro: The German financial regulator Bafin subjected the company to a special audit and found deficiencies in the organization and corporate management, as the S-Dax company surprisingly announced on Saturday evening.
The broker responds to the criticism and expands its board of directors.
In the meantime, day-to-day business is going even worse than previously thought: the board of directors cut its already subdued business forecast for the current year.
The dividend under consideration will probably not exist either.
According to the announcement, Bafin submitted its audit report to the broker in November.
Flatexdegiro did not give an exact date.
However, as a result of the examination, Bafin will “impose, among other things, that the company must ensure proper business organization”.
In addition, she had "ordered temporary additional capital requirements".
According to its own statements, the company has now "initiated various measures to meet the regulatory requirements within a given timeframe".
The company will continue to work closely with the Bafin.
The in-house Flatexdegiro Bank has already got a head of risk in Matthias Heinrich.
In addition, there have been organizational changes in the management of the internal controls, risk management and reporting departments, it said.
According to the announcement, the Supervisory Board and Management Board have also decided to capitalize Flatexdegiro Bank AG with a further 50 million euros from their own funds.
So far, the core capital of the Flatexdegiro group is 180 million euros.
The surplus for the current year should also be retained in full.