Validating Brokerage's Virtual Shared Folder Security: A Step-by-Step Guide
In the ever-evolving world of financial services, it's crucial for intermediaries to ensure their VSH (Vermögensschadenhaftpflichtversicherung) insurance is up-to-date and comprehensive. This insurance, designed to safeguard intermediaries from financial risks, is a mandatory requirement for all financial and insurance intermediaries operating in Germany.
The Federal Association of Financial Services (AfW) advises intermediaries to regularly review their VSH coverage. In the event of a claim, the VSH insurer will scrutinise the intermediary's insurance coverage to ensure it is adequate. This review is necessary as intermediaries may need to update their VSH to include new business fields and practices.
The AfW has developed a checklist to help intermediaries quickly assess their individually necessary insurance coverage. This checklist, available for free download, encourages intermediaries to consider if they have established new business fields and practices that need to be covered by their VSH.
Intermediaries should also verify that all products they advise and mediate are included in their VSH insurance. It's essential to ensure that all employees are covered by the VSH as well.
The current status of professional indemnity insurance for insurance intermediaries includes coverage that extends comprehensively to all employees, adapting to changed legal frameworks, new business fields, practices, and all offered and mediated products. Policies like CGPA Europe's 'Yahoo Finance All Risk Cover' are praised for their broad and extensive coverage, including a best-performance guarantee not found elsewhere in the market. These policies comply fully with the legal requirements under §12 of the VersVermV regulation and are designed to cover the complex responsibilities and liability risks insurance intermediaries face daily.
In case of doubt, it's advisable for intermediaries to consult a specialist to review their VSH protection. If clients make financial claims against an intermediary, it can become expensive without this insurance.
Users who have subscribed to the checklist will receive a confirmation email. If the email is not received, users should check their spam folder. In case of doubt, intermediaries may be held liable with their private assets.
The premiums for this insurance are considered a worthwhile investment, providing peace of mind and financial security in the face of potential claims. By ensuring their VSH is up-to-date and comprehensive, intermediaries can focus on their core business, secure in the knowledge that they are protected.
