How the Federal Court of Justice strengthens the rights of local authorities, small and medium-sized enterprises and private investors? Major German bank ordered to pay damages In its ruling of 22 March 2011, the X I Civil Senate of the Federal Court of Justice (BGH), which is responsible for banking law, for the first time […]
– Why life insurance has outlived its usefulness as a capital accumulation vehicle – Wim Duisenberg, ex-president of the ECB, when asked how he invests his money: “Personally, I’m in the fortunate position of having no reserves.” Statistically, up to more than 80 million German citizens own more than one life insurance policy. […]
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 […]
How municipal officials can prepare for their defense Some cities and towns tend to make the budget look more positive than it really is. That’s where fictitious revenue is booked to show a balanced budget. Expenditure already incurred shall be carried forward to the following financial year. The budget thus appears balanced, showing a surplus […]
How to avoid capital destruction via life insurance In economic terms, life insurance policies are often investments that compete with traditional bank products. Intransparency, faulty advice and incorrect billing cost customers billions every year. In most cases, there is then a claim for back payment, reclaim or compensation. However, insurers will not pay without […]
CONTENTS I. Liability in the event of delegation of tasks II. Particular gaps in cover for voluntary guardians III Further questions regarding adequate insurance cover arise for the professional guardian: Consequences of partnership, cooperation and office sharing No pecuniary loss insurance for lawyers and tax advisors in the case of commercial activity as guardian […]
– 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 […]
The Federal Court of Justice (BGH) sentenced an initiator (redeveloper of old housing stocks) to reverse transaction in its judgement of 20.07.2007 (Ref. V ZR 227/06). The initiator had bought up old housing stock, refurbished it, divided it up according to WEG, and provided it with a financing proposal together with a “sample profitability calculation” […]
Intermediaries who prepare sample calculations of returns, appreciation potential or other future assumptions for their clients expose themselves to liability risk if the calculation contains misstatements. This is especially true when speculative elements are included. For example, in July 2007 the Federal Court of Justice (BGH) sentenced a redeveloper of old housing stock to reverse […]
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) On the duties of a lawyer and tax adviser in the management of third-party assets – in particular in the investment of wards’ money – in escrow or trust accounts Due to faulty investment advice […]
