– Products and concepts for formerly licensed intermediaries, brokers, tipsters and advisors – Investors lose up to more than €40 billion every year because they did not really understand the financial products sold to them – or were the victim of fraud. It is typical that even formerly unsuspicious competence bearers or their financial […]
– How the 2002 reform of the law of obligations will relieve the judiciary – New era in the limitation period for damages In the normal case of investment advice or asset management, the statute of limitations begins with the investor’s knowledge of the person who caused the damage and of the damage. If […]
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, […]
Time and again, investors have fallen for “non-binding annuity forecasts” from life insurance companies – the agent and the advertising material of some companies suggest dream returns of, for example, 12.9 percent or even 31.2 percent to the customer, especially in the case of British policies. At times, clear warnings that such returns are not […]
Life insurance and fixed credit A judgment of the Regional Court of Izehoe dated 29. 1. 2009 (Case No. 7 O 27/09) demonstrates a typical course of events in financing and insurance brokerage. The plaintiff had financed the construction of his house. His insurance and finance broker had arranged a so-called bullet loan, which was […]
Politically planned redistribution at the expense of the middle class Ten billion of taxpayers’ money for IKB, 18.2 billion for Commerzbank, soon 150 billion for Hypo Real Estate (HRE), etc. Hundreds of billions to pay off betting debts and ongoing bonuses for investment bankers. Whose money is being distributed? That’s right: the citizens’ money. […]
Risks from subordinated loans to banks jeopardise the level of retirement benefits Even if the banks are rescued by the state, the life insurers may have to pay for it with their own insolvency. At the very least, however, there is a threat of a reduction in surpluses and thus a lower pension provision […]
“Who burned our money?” exposes fraudulent schemes in the financial system “An all-finance authority like BaFin truly experiences a lot in the course of a year – including nasty surprises. But the subprime crisis that hit us in mid-2007 dwarfs anything we have seen before. Clever financial engineers exploited national and international supervisory loopholes, […]
– Misrepresentation of risk and return by bankers, underwriters and training managers -. False promises and greed for commissions lead to personal liability The German Federal Supreme Court (BGH) has ruled on 19.02.2008 (Ref. XI ZR 170/07) that an investment advisor had intentionally caused immoral damage, § 826 BGB: The advisor had recommended […]
Category: What’s cooking? By: Dr. Johannes Fiala, Attorney at Law (Munich), MBA Financial Services (Univ.), Investment in Liechtenstein: over 200 million state liability lawsuit – credit risks or questionable insolvency protection for German investors In 2003, the Financial Services Authority (AFDL, today: FMA, Financial Market Authority) placed the “Technology Fund Silicon Valley Equities” of the […]
