Mediation law in practice
At this point, attorney-at-law Dr. Johannes Fiala, https://www.fiala.de, will answer your questions.
Questions can be asked via email to ott@dhbw-heidenheim.de.
“What can happen to an insurance intermediary in 2013 if they advise clients on investment schemes even though they are not (yet) registered to do so under the Financial Investment Intermediaries Regulations?”
Anyone practising a profession without the necessary authorisation from their (professional) chamber first risks receiving a cease-and-desist declaration from their chamber, possibly even a cease-and-desist action, as well as a fine as part of an administrative offence procedure. Such activity without the required licence also indicates a certain unreliability and will make subsequent licensing more difficult, initially prevent it, but probably delay it by months or years – until the licensing authority (chamber) is convinced that the matter no longer radiates into the present.
An alternative would be to slip under a liability umbrella as a “tied agent”. For example, credit institutions that offer corresponding financial products or funds and cooperate with “tied free” intermediaries can be considered for this.
Another alternative is to rely on fee-based advice. If commissions are to be disclosed in the future at national or international level – for (alleged) consumer protection – or perhaps even banned altogether in some areas, early strategic realignment can create a competitive advantage.
Dr. Johannes Fiala
