Safeguarding Officer Service

For investment service providers, the proper recording, segregation, and protection of client assets (e.g., cash and financial instruments) is a critical regulatory and operational requirement. Under both EU and national regulations — particularly MiFID II and related local rules — firms are obliged to ensure the security of client assets, and to prevent unauthorized use, commingling, or exposure to risk.

The Safeguarding Officer is a designated responsible person who, either internally or as an external advisor, provides independent oversight, monitoring, and advisory support related to the safeguarding of client assets.

Our service includes:

• Acting as an external Safeguarding Officer, in full compliance with legal and regulatory requirements
• Reviewing, developing, or updating internal policies, procedures, and controls related to the handling of client assets
• Supporting reconciliations and consistency checks between custodians, internal records, and account statements
• Conducting monthly, quarterly, or annual reviews and assessments
• Assisting with reporting and compliance obligations, with particular attention to the expectations of the Hungarian National Bank (MNB), ESMA, and other supervisory authorities
• Providing recommendations for improving effectiveness or addressing control weaknesses
• Offering on-call support in the event of regulatory audits or inspections