In a daily newspaper of 8 October 2018, an ex-professor for financial and economic policy recommends increasing the “spread of funded occupational pensions” (2nd pillar) and “pressing for the offer of a low-cost standard private pension product” (3rd pillar). The main argument for this was a comparison of the “total collective” of those insured with […]
Or rating liability when applying the capital commitment method? In our analysis of the internal rate of return (IRR) method, we found that the central IRR rate is determined using the discounting method. Here, one looks for the interest rate that makes the balance of the discounted return flows (usually the return flows are positive) […]
The IRR yield is based on an unrealistic calculation method. Bank advisors who do not inform their clients about this risk not only claims for damages. In the worst case, a reversal may occur. A guest article by Dr. Johannes Fiala and Edmund Ranosch. In a recent judgement of the LG Munich II (Az.: 9B […]
In our analysis of the internal rate of return (IRR) method, we found that the central IRR rate is determined using the discounting method. Here, one looks for the interest rate that makes the balance of the discounted return flows (usually the return flows are positive) with the IRR investment expenditure (usually equity and […]
Returns are of central importance in the professional life of a banker. Other financial service providers, such as pension funds, financial and investment advisors and credit intermediaries are also affected. The circle of affected professions also includes the rating agency and many a tax consultant/auditor (StB/WP) who is active in connection with Basel II. Often […]
Investment advice for closed-end funds using the IRR return method as the key return indicator. I. IRR advice by the bank and triggering liability reasons In one of the most recent judgements of the LG Munich, a bank was sentenced to pay damages because a bank director had, among other things, used the IRR […]
by Johannes Fiala, Lawyer (Munich), M.B.A. (Univ.Wales), M.M. (Univ.), Certified Financial and Investment Advisor (A.F.A.), EC Expert (C.I.F.E.), Banker (www.fiala.de ) The Stuttgart public prosecutor’s office, white-collar crime division, assesses investor deception through misleading yield information according to the internal rate of return method, also known as IRR yield, as an objective offence of capital […]
Publications – Technical papers Fiala/Schramm, Insolvency risk of British life insurers when relocating to Ireland, ExpertenReport, issue 7/2019, pages 60-62 Fiala/Schramm, When are insurers no longer obliged to pay benefits or can reduce benefits?Expert Report, issue 3/2019, pages 56-58 Fiala/Schramm, No insurance coverage in case of refusal to pay protection money, ExpertenReport, issue 11/2018. Pages […]
More wealth in a planned and controlled manner The own assets in a planned and future-oriented management as well as value-enhancing and risk-optimized investment requires the highest degree of Knowledge and time. Not everyone who has achieved a certain level of wealth is also a financial or controlling expert , so it is advisable to […]
The Stuttgart public prosecutor’s office, white-collar crime division, evaluates the deception of investors by misleading yield information according to the internal rate of return method, also known as IRR yield, as an objective fact of investment fraud according to § 264 a StGB. The opinion was first published in February 2005. More and more investors […]