What are the consequences of the upcoming Financial Intermediaries Regulation for the VSH insurance of intermediaries?

From the series of newsletters of the DHBW (Baden-Wuerttemberg Cooperative State University) Heidenheim on the topic “Mediation Law in Practice”:

At this point, lawyer Dr. Johannes Fiala, https://www.fiala.de, lecturer for insurance law at the DHBW Heidenheim, will answer your questions. Questions can be asked by emailing ott@dhbw-heidenheim.de.

In § 9 paragraph 2 of the forthcoming FinVermV, reference is made to § 9 paragraphs 2 to 5 of the Insurance Mediation Ordinance.
This currently means the following for the amount of insurance coverage:


“The minimum sum insured is 1,130,000 euros for each insured event and 1,700,000 euros for all insured events in a year”.


According to the legislator’s estimate, the “bancassurance intermediary” will incur costs of between EUR 800 and EUR 1,200 for such cover.
The biggest problem is that this (similar to insurance intermediaries or tax advisors) does not protect the consumer.
from criminal conduct or gross breach of professional duties (so-called knowing breaches of duty), because in such
constellations, the compulsory insurance does not provide any insurance cover. The FinVermV will be published alongside the associated law “on grey market regulation”.
(Act on the Amendment of the Financial Investment Intermediary and Investment Law) will lead to a further thinning out of the “free” intermediary community,
thus leading to a further concentration of the market.

If you want to be better insured as a financial intermediary, i.e. you want to avoid some gaps in coverage, you will
have to seek supplementary insurance cover. In addition, it is to be expected that customers – in the knowledge of
the VSH cover – will increasingly try to sue the financial intermediary in the event of incorrect advice.

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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.
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