Rules, authorisations and certificates in finance
What the law requires, and what evidence matters in the advice
The finance trade is heavily regulated because you work with other people's money. You don't have a personal craft authorization like an electrician, but there are clear rules and competence requirements that matter from day one in advisory. Here you get an overview of what is typically relevant and where it is the company — not necessarily you as an individual — that bears the responsibility.
§Competence requirements for advisors
When you advise customers about for example loans investment pension or insurance requirements are set on having the right competencies. The sector works with internal training and certification processes you must go through before you can independently advise within an area. Which requirements apply depends on what you advise about — investment and pension for example are subject to particularly strict rules.
§Good practice and customer interest
Financial companies are subject to rules on good practice that ensure advice is given in the customer's interest and is understandable and honest. You must be able to explain products, disclose costs and not sell anything that doesn't suit the customer. It's a core value in the trade and something you practice from the start.
§Whitewash and know your customer
Banks and insurance companies are required to prevent money laundering and terrorist financing. This means that as an employee you must know the rules for customer identification, understand where their money comes from, and react to suspicious activity. It is an area that is becoming increasingly important and which you will receive thorough training in.
- 01Identify customers and understand their relationships (know your customer)
- 02Be aware of unusual or suspicious transactions
- 03Follow the company's internal procedures in case of suspicion
- 04Do not warn the customer about a possible notification.
§Personal data and confidentiality obligation
In the financial sector you handle sensitive information — account information, income, debt, health in insurance. This is covered by personal data protection rules, and you have a duty of confidentiality. You may only use the information for what it was collected for, and never share it without authorisation. The company has clear guidelines you must follow.
§Keep up to date
The rules on the financial sector change continuously, and companies demand regular updates and recertification. Don't see it as a burden, but as part of the profession's seriousness: customers must be able to trust that you know what you're talking about.