Brokerpoint – your worldwide online broker
Financial strength and security at Brokerpoint / IBKR Group
Kaiser Global Invest GmbH / Brokerpoint (BaFin No. 80171176) provides the brokerage of financial instruments (investment brokerage) and advice on these (investment advice) in accordance with § 2 Abs. 10 Banking Act (KWG) – as a contractually bound agent in the name and under the liability of ATVANTIS Asset Management GmbH, Straße des Friedens 112, 07548 Gera, Germany. ATVANTIS Asset Management GmbH is a financial services institute according to § 32 KWG, which belongs to the compensation scheme of the securities trading company EdW. For more information on EdW, please click edw.
Before you entrust your money to a broker, you should make sure that they can survive even in poor economic times. Interactive Brokers LLC’s annual reports are freely available on our website.
Please note that Interactive Brokers LLC and its affiliates are owned by Interactive Brokers Group (IBG LLC).
Key facts about the strength and security of the Interactive Brokers Group
- IBG LLC’s consolidated equity is more than $ 9 billion, which is $ 6.0 billion above the minimum regulatory requirements.
- IBG LLC is owned by our public company Interactive Brokers Group, Inc. (18.5%) and the company’s employees and affiliated companies (78.2%). In contrast to other companies in which the management only holds a relatively small share in the company, we at IB feel negative business developments as clearly as positive ones. Out of this own interest, we pursue a conservative business policy.
- We conduct our brokerage and market-making activities in separate companies that are registered with the local regulatory authorities for securities and / or commodities trading. We maintain a strict systematic and procedural separation of these two branches of business and there is no mixing of customer and company capital and no use of customer assets for proprietary trading by the company. Some IBKR affiliated companies act on their own account, but our customer-oriented divisions do not trade on their own account. We have largely completed the process of reducing our market making practices.
- We do not have significant positions in OTC securities or derivatives. We do not hold CDOs (Collateralised Debt Obligations), MBS (Mortgage-Backed Securities) or CDS (Credit Default Swaps).
- Our positions are revalued daily at the current market price and the resulting liabilities / receivables are automatically compared with external sources.
- Our real-time margin system continuously evaluates all customer positions at the current market price. All orders are subject to a coverage check before they are executed and positions in accounts that do not have a sufficient minimum margin are automatically liquidated.
- In 2019, IBG LLC posted pretax profits of $ 1.2 billion.
- IBG LLC has no long-term debt.
- Interactive Brokers LLC is rated “BBB +” by Standard & Poor’s; “Positive outlook” rated.
Investor protection at Brokerpoint / IBKR compared to industry standards
Interactive Brokers LLC (IBKR) takes a proactive approach to customer protection. IBKR calculates the amount of cash and securities owed to a customer on a daily basis and stores these funds separately for the exclusive benefit of the customer. In addition, a considerable buffer is kept. IBKR was the first broker-dealer to be approved by FINRA to calculate its customer accruals liabilities (as per Rule 15c3-3) on a daily basis, while this calculation is by default in the industry on a weekly or monthly basis.
IBKR’s increased customer protection reduces the risk that customers will not receive a full refund in the event of the company’s liquidation. With almost all other broker-dealers, the amount owed to customers is calculated on a weekly or monthly basis. This approach poses a risk for credit amounts that the customer pays in in the meantime, since the companies concerned usually only protect the credit that was already available as a deposit at the time of the last calculation. IBKR determines the amount owed to customers and reserves the appropriate amounts to cover the company’s liabilities on each business day. In the extremely unlikely event that our business was wound up, this would make it easier for trustees to determine how much money each customer is entitled to. With other broker-dealers, trustees would have to reconstruct the activities of the last business week. As was evident with the Lehman bankruptcy, this creates a significant delay in the repayment of the assets.
IBKR applies real-time based risk margin requirements to all client accounts, while most other industry participants only apply risk margin requirements at the end of the day. If it is determined that a client does not have sufficient assets to cover the risk of the open positions in their account, IBKR typically performs real-time liquidations to bring the account back in line with applicable margin requirements. Other brokers often allow customers to carry such risks over several days.
IBKR’s real-time based risk margin requirements and preventative liquidations significantly minimize the extent to which our clients are exposed to losses caused by the trading activities of other clients, as well as the risk IBKR incurs from losses from clients. The method used by other broker-dealers, where the risk calculation is done at the end of the day, increases the likelihood that customers will be exposed to higher risks due to volatile market conditions, unlike IBKR customers under the same market conditions. Firms that do not perform real-time liquidations and accept promises from customers that missing funds will be made available in the future, expose their customers to other customers’ credit risk.
Another key benefit of doing business with IBKR is that IBKR does not hold any proprietary inventory. IBKR acts exclusively as an intermediary for customers’ trading activities and does not engage in directional speculative transactions. Two of the most significant broker-dealer bankruptcies of the past decade (Lehman Brothers and MF Global) were caused by proprietary position inventory risk.
Since IBKR does not engage in speculative transactions for its own account, there is a significantly lower risk of IBKR becoming insolvent and assets being tied up as a result of the liquidation than would be the case with other broker-dealers who take their own trading positions. Furthermore, IBKR customers do not have to worry that their broker will enter into their own speculative deals against them.
All broker-dealers are permitted to lend securities from customers (“pledging” or “re-mortgage”) if a customer takes out a margin loan. When IBKR re-pledges customer securities, the company returns 103% of the market value of these re-pledged securities on a daily basis. Most broker-dealers only put this money back once a week.
Through the daily provision of customer assets, IBKR ensures that separately stored cash assets with a value higher than the market value of the pledged securities are always available to be paid out to customers. Other broker-dealers who only perform this calculation on a weekly basis put client money and assets at an increased risk that the firm will not protect its clients in relation to the use of client money during the week. This can lead to losses for customers.
Likewise, unlike other broker-dealers, IBKR separates daily cash to cover securities owed to customers that are temporarily not in a “good control location”. 1 This is a well-known phenomenon in the industry, also known as “ Segregation deficit ”. Other broker-dealers may allow such deficits to persist for several days before taking the necessary action.
IBKR reduces customer risk by ensuring that the market value of all securities that are not proven to be in a “good control location” is properly deferred in cash on a daily basis. IBKR customers can therefore have great confidence in the fact that IBKR correctly delimits and stores their assets. Many other brokers leave a deficit for several days without taking any further steps to protect their customers.
Finally, it should be mentioned that IBKR is not affiliated with a bank, which sets it apart from most broker-dealers with a comparable market capitalization. The fact that IBKR is not affiliated with a bank means that the company can provide a more stable platform in the event of a market-wide crisis.
Broker-dealers affiliated with banks are subject to more extensive regulation by banking regulators, which creates additional uncertainty about which parties can claim assets in the event of bankruptcy. Since IBKR is not a bank, we assume that customers’ assets would be repaid more quickly than would be the case with a broker-dealer belonging to a bank. In the scenario of a financial crisis, IBKR’s financial resources would also be used exclusively to continue the smooth operation of the broker-dealer business. Broker-dealers affiliated to banks, on the other hand, are capitalized by the affiliated bank and are usually established as a subsidiary of an affiliated bank holding company. In contrast to IBKR, such broker-dealers connected to banks are not independent, capital-based companies, which creates an additional risk dimension for their customers. In a financial crisis, these broker-dealers compete with their affiliated banking companies for capital and liquidity. This could lead to capital being withdrawn from the broker-dealer business and used in the banking company, to the detriment of brokerage customers. Lehman Brothers and Bear Stearns provide historical examples of companies who have exhausted their broker-dealer companies to raise capital to rescue the banking business that was the source of financial troubles. Both companies filed for bankruptcy. As a result, there were significant delays in customer access to their assets and transferring them to an active broker-dealer.
Indeed, at the height of the financial crisis, customers took their financial assets and securities from these bank-affiliated broker-dealer firms and deposited their assets with IBKR as a safe depository. Thanks to IBKR’s strong financial position, customer capital and cash increased by 77% and 65%, respectively, from November 2008 to November 2009.
Client securities accounts at Interactive Brokers LLC are protected by Securities Investor Protection Corporation (“SIPC”) up to a maximum coverage of $ 500,000 (partial cash limit: $ 250,000) and are also protected by excess Interactive Brokers LLC’s SIPC policy secured with certain Lloyd’s of London insurers1, which covers an additional amount of up to $ 30 million (partial cash limit: $ 900,000), subject to a grand total of up to $ 150 million. Futures and future options are not insured. As with all securities companies, this insurance is a protection in the event of a broker-dealer bankruptcy and not an insurance against a decline in the market value of securities.
To determine customer accounts at Interactive Brokers LLC, accounts with the same name and type (e.g. “Peter and Lisa Schmidt” and “Lisa and Peter Schmidt”) are combined, but not accounts of different types (e.g. “Individual customer account / Peter Schmidt “and” IRA account / Peter Schmidt “).
The SIPC is a non-profit membership association funded by broker-dealers who are members of the SIPC. Further information about the SIPC and answers to frequently asked questions (e.g. how the SIPC works, what its protection extends to, how a claim can be made, etc.) can be found on the following websites:
Alternatively, you can contact the SIPC directly:
Securities Investor Protection Corporation
805 15th Street, N.W. – Suite 800
Washington, D.C. 20005-2215
Phone: (202) 371-8300
Fax: (202) 371-6728
Interactive Brokers attaches great importance to protecting your account and your assets from fraudulent attacks. The secure login system gives your account an additional level of protection for free1 through the use of a physical security device provided free of charge or the use of IBKR Mobile, our digital security app for smartphones. The simple method of entering a randomly generated security code along with your username and password is a big step forward in protecting your account, even if it requires an additional step to log into your account.
Remember: even if an online hacker or identity fraudster should get hold of your IBKR username and password, they will still NOT be able to log into your account without physical access to the security device. The advantages of the secure login system include:
- The security device gives your IBKR account additional protection.
- Participation in the program is accompanied by a higher payout limit per day and per week.
- Even if you have multiple accounts, you only need one device. You can use the security device for different user names that are registered to the same account holder.
Temporary mobile two-factor authentication
During the account opening process, you will be asked to verify a cell phone number in order to proceed. This activates two-factor protection via SMS messages. IBKR will send you a one-time PIN when you log in.
However, mobile two-factor authentication is temporary and will be disabled as soon as you activate any of the digital or physical security devices described below.
Physical security devices
Digital Security Card+ – Available for accounts with a balance greater than $ 500,000. By using a PIN number, a check number and a larger total number of possible number combinations, the protective function is additionally increased.
IBKR mobile authentication
IBKR mobile authentication enables two-factor authentication for your account via an app that you can download on your Android or iOS smartphone. A PIN code or fingerprint is required to use IBKR Mobile authentication. You can use IBKR Mobile independently or as an alternative to your existing physical security device.
Request a security device
New customers – Register and confirm your mobile phone number or activate IBKR Mobile. To do this, download the iOS version from the App Store or the Android version from Google Play. You can find detailed instructions in our IBKR knowledge base in article KB2260.
Existing Customers – Accounts with capital greater than $ 500,000 can request a Digital Secure Card + as an add-on to their IBKR Mobile Authentication. To do this, please follow the instructions that you can access here.
When will I get my security device?
We ship physical security devices on a daily basis. The estimated delivery time can vary from a few business days to several weeks, depending on your shipping address and local delivery options. IBKR Mobile Authentication is downloaded from the App Store or Google Play.
Once you have received your physical security device, log into the Client Portal and follow the instructions available here to activate your device.
IBKR Mobile users must first download and install the app from the respective store. You can find detailed instructions in our IBKR knowledge base in article KB2260.
As soon as your security device or digital security app has been activated, each time you log into the Client Portal, TWS, WebTrader or IBKR Mobile, you must enter two authentication factors – your username and password, as well as the security code that Generated on your security device. When you have successfully logged in, the entire scope of your account is protected and unauthorized access to your cash and securities positions is prevented.
Apply for a replacement device
In the event that your physical security device is lost, stolen, or inoperable, please follow the instructions in our IB knowledge base article KB1943.
Customers who participate in the secure login system are granted extended withdrawal rights, while non-participating customers are bound by the daily and weekly withdrawal restrictions. The amount that the participating customer in question can withdraw / transfer in the course of a day or a period of five days increases in proportion to the protection value of the device. Below is an overview in table form.
The policy is based on the privacy and data protection principles that are common in the countries in which we operate. The aim of the policy is to provide a general explanation of IBKR’s data protection practices and to educate our customers, potential customers, job applicants, website visitors and other third parties about the specific IBKR data protection policies that may apply to them.
This guideline is specifically aimed at those persons who provide IBKR with personal information or who use the IBKR website, trading platforms, software applications and social media pages.
Who is responsible for your personal information?
IBKR is responsible for the personal information we may collect in the ways described below. IBKR includes: Interactive Brokers LLC, One Pickwick Plaza, Greenwich, CT 06830 USA; IBKR Ireland, incorporated and registered in Ireland with company number 657406 and its registered office at 10 Earlsfort Terrace, Dublin 2, D02 T380, Ireland; Interactive Brokers Luxembourg SARL is incorporated and registered in Luxembourg with company number B229091 and its registered office is: 4, Rue Robert Stumper, L-2557 Luxembourg; Interactive Brokers (U.K.) Limited, (03958476) a limited liability company with registered office at: Level 20 Heron Tower, 110 Bishopsgate, London EC2N 4AY and its respective affiliates (“IBKR Companies”). Your personal information is controlled by the IBKR company that provides services and communications to you. In some cases, your personal information is controlled by more than one IBKR company.
How do we collect your personal information and what personal information is collected?
IBKR collects personal information from you. This can include the following types of information:
- Information that is provided in the course of an IBKR account application or while using IBKR website applications (for example: your name, email address, telephone number, date of birth, tax identification number, investment goals, etc.);
- Information collected as a result of the transactions you make through the IBKR systems or in connection with services offered by IBKR (for example, if you participate in IBKR’s debit card program);
- Information we have received from credit reporting agencies;
For what purposes will we use your personal information?
It is possible that we will use your personal information for the following purposes (“Approved Purposes”):
- To provide you with brokerage and other financial services offered on our platforms and / or to answer any requests or questions you may have;
- To pursue legitimate interests, including monitoring and analyzing our company or our operations;
- To carry out our recruiting process;
- To contact you about offers and features that may interest you (unless you tell us you don’t want to);
- To enter into or execute any contracts;
- So that controls are carried out by us or another person on our behalf using different methods: (i) the use of “intelligent” automated monitoring tools; or (ii) through random monitoring of systems, e.g. B. in a systematic manner via electronic communication recording tools; (iii) through specific monitoring of systems, e.g. B. in connection with investigations, regulatory inquiries, requests for disclosure of personal data, legal proceedings, arbitration, mediation or; (iv) data tracking, aggregation and analysis tools that pull data from disparate data sources to establish connections and / or identify behavioral patterns, interactions or preferences for analysis (including predictive analysis) and / or (v) use of other similar surveillance technology that may become available over time;
- To comply with any applicable law or regulation in any country;
- For any other purpose for which your personal information has been provided to us.
It is possible that we will use your personal information for the following purposes after we have received your express consent, as required by law:
- To communicate with you through any channels you have approved so that we can keep you updated on the latest developments, announcements and other information regarding IBKR services, products and technologies;
- To conduct customer surveys, marketing campaigns, market research or promotional activities;
- To collect information about your preferences for creating a user profile. This user profile is used to personalize and promote the quality of communication and interaction with you (e.g. through newsletter tracking or website analyzes).
To the extent required by law, we will only provide you with such information with regard to marketing-related communications after you have given your consent. You also have the option of opting out at any time if you no longer wish to receive marketing-related communications from us. We are happy to keep our customers, employees and other interested parties informed of company developments, including IBKR news that we think may be of interest to them. If you do not wish to receive any communications or information about events or seminars that we believe may be of interest to you, please follow the link below: https://www.interactivebrokers.com/de/index.php?f= 464. To the extent required by law, we will not use your personal information to make automatic decisions that could affect you or to create profiles that differ from the profiles described above.
Depending on the authorized purposes for which we use your personal information described above, it is possible that we could use your personal information for one or more of the following legal reasons:
- To process personal information for the performance of customer instructions or other contracts with you or your organization;
- To fulfill our legal obligations (e.g. storing pension documents or documents for tax purposes);
- To use personal information based on the legitimate interest of us or any external recipients who receive your personal information, provided that such interests do not override your interests or fundamental rights and freedoms.
- Because the processing of information is useful and necessary in our discretion and is permitted under the law of the respective state.
In addition, the processing can be based on your consent if you have given us this expressly.
Who do we share your personal information with and under what circumstances?
We may share your personal information in the following circumstances:
- It is possible that we share your personal information with the IBKR companies on a confidential basis and only if necessary for the provision of products and services as well as for administrative, billing and other company purposes in accordance with applicable law. A list of countries where the IBKR companies are located can be found on our website.
- In addition, we may instruct service providers within or outside of IBKR at home and abroad to process personal information for approved purposes on our behalf and in accordance with our instructions. For example, if you choose to subscribe to any of the services offered by third-party providers that are offered on Interactive Brokers’ investor portal, we have the option of disclosing such information to service providers as necessary so that they can provide you with the information you have requested Can provide services. IBKR obliges these service providers to sign a confidentiality agreement with IBKR in order to limit their powers to use the data provided. The confidentiality agreements prohibit the service providers from using IBKR customer data received for purposes other than the services for which they were provided. To the extent required by law, IBKR retains control and takes responsibility for your personal information. In addition, appropriate protective measures are taken to ensure the integrity and security of your personal information when you interact with service providers.
- We may also share your personal information with companies that provide fraud and crime prevention services and companies that provide similar services, including financial institutions such as: B. Credit reference agencies and regulatory authorities.
- It is possible that we share your data with third parties so that they can help us carry out recruitment procedures.
- In accordance with applicable law, we may share your personal information with courts, law enforcement authorities, supervisory authorities, lawyers or other parties for the establishment, execution or defense of a legal claim or a legitimate claim or for purposes of a confidential alternative for dispute resolution processes.
- We may also use summarized personal information and statistics for website monitoring purposes to support our website and services in their development.
Otherwise, we will only disclose your personal information if you give us the instruction or consent to do so, insofar as this is required by applicable law, ordinances, judicial or official orders, or to investigate actual or suspected fraud or criminal activity.
Personal information about other people that you provide to us
The protection of your personal information
To the extent required by law, we will take appropriate technical and organizational measures to keep your personal information confidential and secure in accordance with our internal procedures for storage, disclosure and access to personal information. Personal information may be held in our information technology systems, those of our contractors, or on paper files.
The transfer of your personal information to countries outside the European Economic Area (“EEA”) (if the GDPR applies)
For persons who are subject to the General Data Protection Regulation (EU) 2016/679 (“GDPR”), it is possible that we transfer your personal information to countries outside the EEA for the approved purposes outlined above. This may include countries that do not offer the same level of protection as the laws of your home country (ex: laws within the EEA or the US). We will ensure that such international transfers will comply with the appropriate and appropriate safeguards if required by the GDPR or other relevant laws. You can contact us at any time using the contact information below if you would like further information on such protective measures.
If personal information is transferred to countries or regions outside the EEA which, according to the European Commission, cannot offer adequate data protection, we have set up appropriate data transfer mechanisms for persons who are subject to the GDPR to ensure the protection of personal information.
Updating your personal information
If any of the personal information you have provided to us changes (for example if you change your email address or want to cancel a request you have made), please let us know by contacting the Contact IBKR customer service via the IBKR website. We are not responsible for any loss resulting from inaccurate, incorrect, inadequate or incomplete personal information that you provide to us.
How long do we keep your personal information?
We keep your personal information in an identifiable format in accordance with our internal guidelines, which define general standards and procedures for the storage, handling and availability of your personal information. Personal information is stored for as long as necessary to meet legal, regulatory and business requirements. The retention periods may be longer in the event that we need to retain your personal information for purposes of litigation, investigations and proceedings.
Further rights of persons or information that are subject to the GDPR
With regard to EEA residents and personal information processed by an IBKR company established in the EEA (“Data Subjects”), you have a number of legal rights under the GDPR regarding the personal information that we are entitled to Keep them. These rights include:
- Obtaining information regarding the processing of your personal information and access to the personal information we hold about you. Please note that there may be situations in which we have the right to refuse access to copies of personal information (in particular information that is subject to legal professional secrecy).
- Right to have your personal information corrected if it is incorrect or incomplete;
- Right to have your personal information deleted in certain circumstances. Please note that there may be times when you ask us to delete your personal information, but we are legally entitled to keep it.
- Objection and request that we restrict our processing of your personal information in certain situations. Again, there may be cases where you object or ask us to restrict our processing of your personal information, but we are legally entitled to keep it.
- Withdraw your consent, although it may be lawful for us to continue processing your information without your consent, provided we have another legitimate reason (other than your consent) to do so.
We have appointed a Data Protection Officer (“DPO”) to expand and reaffirm our compliance and understanding of privacy and data protection principles. If you would like to take any of the above measures, please send us an email to: firstname.lastname@example.org.
We may ask you to confirm your identity by providing us with a copy of valid proof of identity so that we can meet our security obligations and prevent unauthorized disclosure of information. We reserve the right to charge a reasonable administrative fee for manifestly unfounded or excessive requests to access your data and any additional copies of personal information you ask us for.
We review any inquiries or complaints we receive and respond to them in a timely manner. If you are dissatisfied with our answer, you can submit a complaint to the regulatory body relevant for data protection. Upon request, we will provide you with the details of your regulatory body relevant to data protection.
What are cookies and web beacons?
Cookies are pieces of data that are downloaded from a website to a user’s hard drive for logging purposes. Web beacons are transparent tracking pixels that are used to collect information regarding website usage, answering e-mails and tracking. In general, it is possible for cookies to store information about your Internet Protocol (“IP”) addresses, the region or general location from which your computer or device can access the Internet, the browser type, the operating system and other usage information Website as well as the Internet history for the pages you access.
Absolutely necessary cookies
These cookies are necessary for the website to function and cannot be deactivated in our systems. These are normally only used for actions by you that may relate to service requests, such as B. the setting of your data protection settings, login or completion of forms. You can set your browser so that it blocks cookies or warns you about them, but certain parts of the site will not work properly as a result. These cookies do not save any personal data.
Performance Cookies and Web Beacons
These cookies and web beacons allow us to count visitors and traffic sources so that we can improve the performance of our site. They help us find out which pages are the most popular and least popular. In this way, we can also see how visitors are moving around the site. All information these cookies and web beacons collect is aggregated and therefore anonymous. If you do not allow these cookies and web beacons, your visit will not be recorded in our aggregated statistics.
These cookies enable the website to provide improved functionality and personalization. It is possible that these are set by us or third-party providers whose services we have added to our pages. If you do not allow these cookies, some or all of these services may not work properly.
Targeting Cookies and Web Beacons
These cookies and web beacons can be set through our website by our advertising partners. These can be used by these companies to create a profile of your interests and to show you relevant advertisements on other sites. They do not store any personal information directly, but they specialize in identifying your browser and the device you use to access the Internet. If you do not allow these cookies and web beacons, you will receive less targeted advertisements. The website does not track users when they switch to third party websites and does not offer them targeted advertising and therefore does not respond to do-not-track signals.
Managing your cookie settings
You have many options when it comes to managing cookies on your computer. All major browsers allow you to block cookies or delete them from your system. However, if you decide to deactivate cookies, you will not be able to access certain areas of our website or the website may not function properly. To find out more about managing cookies and web beacons and how to disable them, go to your privacy settings in your browser or visit www.allaboutcookies.org.
Type 1, 2 and 3 SOC reports at IBG LLC
Each year IBG LLC’s brokerage business / system is audited by independent, third-party auditors under the Systems and Organization Controls (SOC) reporting framework. IBG LLC’s brokerage systems review includes security, availability, process, and confidentiality reviews against the trust principles within SOC reports 2 and 3.
IBG LLC offers SOC-1-Type-2 and SOC-3 reports to inform clients and counterparties about their services regarding delivery processes and their regulation via a report from an independent and certified public accountant.
In principle, the SOC report type 1 is available via the following channels:
- Client Auditors – Please request the report from www.confirmation.com.
- Customers – Please contact your sales representative.
- Other – Please send a request to email@example.com
The SOC report type 3 is publicly available under the following link: www.interactivebrokers.com/download/IB_SOC_report_3.pdf
Overview of SOC reports type 1, 2 and 3
The American Institute of Certified Public Accountants (AICPA) has developed the “System and Organization Controls (SOC)”, a standard. to ensure controls are effective and designed. This is in line with the “International Standard on Assurance Engagements (ISAE)”, the reporting standard for international service organizations.
Service reviews based on the SOC framework can be divided into two categories: SOC 1 and SOC 2 & 3, which apply to brokerage services provided by IBG LLC.
In a SOC-1 audit, which is aimed at CPA companies that review financial statements, the sustainability of the design and process efficiency of the internal controls at IBG are checked.
As part of a SOC-2 examination, the brokerage system of IBG and its affiliated brokerage companies is examined based on the design and process efficiency of control systems that refer to the respective principles of the AICPA (Trust Service Principles and Criteria).
At the end of a SOC-1 or SOC-2 exam, the examiner gives his or her opinion in a SOC-1 Type-2 or SOC-2 Type-2 report, in which the brokerage business / system of IBG are described and the fairness of the control description is assessed by IBG. In addition, it is also assessed whether the IBG control systems are designed accordingly, were in operation at a certain point in time and function effectively over a certain period of time.
A SOC-3 report is then generated. This is an abbreviated version of the SOC 2 Type 2 report, which enables IBG to give guarantees about its control systems without disclosing details about the control systems.
The “Statement on Standards for Attestation Engagements” and the “International Standards for Assurance Engagements” (ISAE) are standards within the framework of which audits are carried out and which serve as a general basis for SOC reports type 1, 2 and 3.