Muzzle on billion-dollar financial fraud under BaFin supervision

The Federal Financial Supervisory Authority (BaFin) celebrates a decision of the Administrative Court of Minden (decision of 17.12.2010, ref. 10 L 690/10) as a triumph – however, it is probably rather an admission of hopeless overstrain? Defrauded investors should not under any circumstances hope for financial supervision – it protects the existence of financial institutions, […]

Intermediary and sales coaching: BaFin may prohibit credit offers from Switzerland

The latest decision of the European Court of Justice (ECJ) of 03.10.2006 (Ref. C-452/04) underlines the importance of the European Constitution for the internal market. Switzerland is not part of the internal market: therefore, according to the ECJ, BaFin may also prohibit commercial lending by companies established in third countries. Legal basis Pursuant to Section […]

Initiatoren-Begleitung und Controlling: Lack of BaFin approval with punishment ? Reversal trap in distribution law

*by Johannes Fiala, lawyer (Munich), MBA Financial Services (Univ.Wales), MM (Univ.), certified financial and investment advisor (A.F.A.), banker (www.fiala.de) For initiators and distributors it is of crucial importance that all necessary permits are available ? including audited prospectuses. However, there are always initiators who are badly advised or not advised at all. So it comes […]

Intermediary and sales coaching for closed investments: BaFin prospectus up-to-dateness and prospectus liability of insurance companies

*by Johannes Fiala, Lawyer (Munich), MBA Financial Services (Univ.Wales), MM (Univ.), Certified Financial and Investment Advisor (A.F.A.), EC Expert (C.I.F.E.), Lecturer (Univ. of Cooperative Education), Banker (www.fiala.de) He who knows nothing must believe everything.” (Marie von Ebner-Eschenbach) For the financial service provider, the BGH stipulated in its ruling of 13.01.2000 (Ref. III ZR 62/99) that […]

Initiator support and controlling: When BaFin prohibits PKV sales and orders liquidation

*by Johannes Fiala, lawyer (Munich), MBA Financial Services (Univ.Wales), MM (Univ.), certified financial and investment advisor (A.F.A.), banker (www.fiala.de) and Dipl.-Math. Peter A. Schramm, actuary DAV (Diethardt), actuarial expert (www.pkv-gutachter.de) For initiators and distributors it is of crucial importance that all necessary permits are available ? including audited prospectuses. However, there are always initiators who […]

Initiatoren-Begleitung und Controlling: Lack of BaFin approval with punishment ? Reversal trap in distribution law ?

*by Johannes Fiala, Attorney at Law (Munich), MBA Financial Services (Univ.Wales), MM (Univ.), Chartered Financial and Investment Adviser (A.F.A.), Banker (www.fiala.de) For initiators and distributors it is of crucial importance that all necessary permits are available ? included tested Brochures. However, there are always initiators who are poor or even are not advised. And so […]

Neither liability umbrellas nor structured distributors protect intermediaries from personal liability

– When sellers, intermediaries and advisors are themselves in the fire in the case of insolvent investments –   A well-known structural distributor was ordered to pay damages by judgment of 31.07.2014 (LG Frankfurt/Main, Case No. 2-32 O 154/13) because an investment advisor insufficiently informed about risks of a real estate fund. Structural distributors and […]

Choice of law and advantages of European life, pensions and health insurance

– Opportunities and risks for policyholders and their insurance brokers –   Foreign insurance companies, especially those from the European Economic Area (EEA) and the European Union (EU), are increasingly competing with domestic suppliers. For insurance intermediaries and insurance customers, this creates risks, but also opportunities.   Regular notification procedure EEA and EU insurers must […]

Stress test by financial regulator leads life insurance company into insolvency

– What are the scenarios of settlement in insurance due to low interest rates ? –   Customers of life insurers are shaken: on 16.12.2014, the business press reported that a Swiss life insurer had now filed for insolvency, and had become a victim of low interest rates. The 13,000 policies were taken over by […]