Rosche case proves: Only compulsory reading prevents multi-million losses for bankers, intermediaries and consultants

by Johannes Fiala, lawyer
Since the so-called BOND judgement, bankers, agents and advisors have to observe so-called cardinal obligations in matters of capital investment: As early as 2000, the trade journal INVESTMENT reported extremely critically on the initiator ROSCHE -> “Not recommendable”. It came as it had to come: The initiator or the doer, Miachael Vogelbacher, is accused by the public prosecutor’s office of having embezzled investors’ money and the fund property (Fund XXXI ? Building Washington) still does not belong to the fund or the investors. ROSCHE FINANZ was thus already in the best company in 2000 or earlier with, for example: Columbus, Dr. Hanne, Today Fund, BBVI and others: the trade journal INVESTMENT had not classified them as recommendable.
The ROSCHE sales partner should have taken note of the trade press.  The sales partners should also have expressly drawn the customers’ attention to the critical reporting, so-called negative media reports.
The omission of a reference to the trade press or obligatory reading of the financial advisor leads to the damage: The capital investor may now take the position that he would have participated in the ROSCHE fund if he had known about the press reports. In such cases, the court assumes that the investor would have refrained from joining. Nor would the investor have taken out a loan to finance it.
Consequences are then: a) Reimbursement of the subscription amount (or assumption of the loan in the case of loan financing of the ROSCHE Fund participation), (b) reimbursement of interest on loans in the event of financing of the fund’s investment c) Compensation for lost profit of approximately 6% (long-term interest rate of the capital market), (d) assumption of the costs of proceedings for one or two instances. Especially in the case of credit financing of the fund participation, this can result in a doubling of the capital as well as enormous further follow-up costs.
Bankers, intermediaries and advisors are then liable for full reversal ! This case shows once more that advice in matters of capital investment presupposes that the adviser must constantly follow the specialist press as compulsory reading, otherwise there is a great and increasing danger of being held personally liable even for 30 years.

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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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