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 (

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 it comes as it had to come: The
Criminal court sentences the initiator.

The ALPINA case ? a research by Heinz Gerlach, Direct
Investor Protection (
This case has occupied the judiciary for years, with numerous
Investors who refuse to continue to pay to the company. Now has
the district court of Munich made an example. In essence, if the
Initiator (to be precise, the managing directors of the general partner)
convict for lack of licences or permits
then this is enough for the investor to lose confidence.

The rescission with reversal:
If the investor has lost his confidence, then he can challenge.
The court then interpreted this as a permissible termination without notice. At
judgment states that ?proper merchants play it safe
especially if the state central bank is going to have
(alleged) Reports violation of the KWG.
Check clean vest ? with a view to the expert rating:
It is crucial for the intermediary to make sure of this,
that the products it distributes have all the necessary authorisations.
This is part of the investment adviser’s duty to check plausibility. About
In addition, the expert rating can help to separate the wheat from the chaff.

Will my insurer pay in the event of liability ?
The intermediary must be clear about what all belongs to the trade press.
counts. negative circumstances must be clarified. Every investor can
for decades, he has pleaded ignorance of negative
I wouldn’t have signed.
If a capital investment involves an entrepreneurial risk
realized, the investor may rely on the ?concealment? of negative
Press: In the end, it’s the broker who bears the risk…
Plant not running well.
Who the eyes before the ?Gerlach investor protection transparency rating?
and/or the ?expert rating? knowingly closes, simplest
does not check plausibilities, does not need to be surprised later, if the
own VSH insurer does not provide cover “on account of knowing
Breach of duty? Declines.

by the way: Whoever distributes products without the required approvals can
could also make themselves liable to prosecution. The annual report of BaFin and
BaFin press releases offer a delightful selection here. When at
mediator then something (criminal) ?remains hanging?, is pleased the
VSH insurers as well, because then there is no VSH coverage.
What to do in case of damage?
It is not uncommon for intermediaries to bury their heads in the sand, even if they are
are insured. In the process, they still try to talk to the customer,
and ?fix things? If this does not involve a
professional VSH broker to the side, and above all then also a
(precautionary) notification of damage is made promptly, the
Insurer. The VSH insurance company will extend the cover in the event of too
later refuse to file a claim.

Our office in Munich

You will find our office at Fasolt-Strasse 7 in Munich, very close to Schloss Nymphenburg. Our team consists of highly motivated attorneys who are available for all the needs of our clients. In special cases, our law firm cooperates with selected experts to represent your interests in the best possible way.

About the author

Dr. Johannes Fiala Dr. Johannes Fiala

Dr. Johannes Fiala has been working for more than 25 years as a lawyer and attorney with his own law firm in Munich. He is intensively involved in real estate, financial law, tax and insurance law. The numerous stages of his professional career enable him to provide his clients with comprehensive advice and to act as a lawyer in the event of disputes.
»More about Dr. Johannes Fiala

On these pages, Dr. Fiala provides information on current legal and economic topics as well as on current political changes that are of social and/or corporate relevance.

Arrange your personal appointment with us.

Make an appointment / call back service

You are already receiving legal advice and would like a second opinion? In this case please contact Dr. Fiala directly via the following link.

Obtain a second legal opinion

(The first phone call is a free get-to-know-you conversation; without consulting. You will learn what we can do for you & what we need from you in terms of information, documents for a qualified consultation.)