What you always wanted to know about the “Sex & Crime” of the industry ?

What you always wanted to know about the ?sex & crime? of the industry?

Filing of annual reports Filing of annual reports with the registry court is an obligation, especially for corporations. European law requires this.

The German legislator shied away from the work of implementation and monitoring: immediate information is hardly available from the registry court.

Banks usually prefer to receive these documents directly from the customer in order to assess their creditworthiness. The one who does not react to this risks the loan termination – and this then also has a timely effect(s). Importance for Distributors As a sales organisation, it could be crucial that intermediaries have a clean slate.


But this is also true the other way around:

  • Has your regional or district director had a criminal record? A look into the expert archives can provide information.
  • Does your master distributor or broker pool have sufficient creditworthiness to answer for the errors resulting from incomplete product training?
  • Can he literally afford the responsibility if you are sent to the customer with half-truths or self-made brochures or software?
  • What performance is behind the fact that a product has (allegedly) been put through its paces by the company?


The register procedure

If you want to inquire:

Just write to the commercial register and ask for the annual reports. Most of the time, they are told that – contrary to legal requirements – nothing at all has been deposited.

You then have to request the embarrassing disclosure procedure separately, with the threat of a penalty payment. And all this takes time – and does not make a good impression!

Put your contractual partners to the test – at the commercial register:

Then you know where you stand. Missed PR measures reduce credit rating Ultimately, many a PR and public relations manager is dismissed for not knowing the legal requirements. It would hardly be a hassle to file the documents to be disclosed with the Registrar of Companies and make them available on the website.

Especially for small and medium-sized enterprises, the obligation is a freestyle: According to the last legal amendment, Basel-II only affects loans of 750 TEUR or more at banks, § 18 KWG. This makes it even more crucial whether a company can disclose comprehensible figures.



The German Commercial Code (HGB) requires that the balance sheet be prepared six months after the end of the financial year – disclosure or filing with the Commercial Register must take place within one year. Who wants to get involved with a distributor who has one foot in jail?

For violation of the accounting obligation (violation of the timeliness according to HGB) the criminal judge regularly awards 120 daily sentences (more than 90 daily sentences mean a previous conviction). Which partners do you want to work with as a financial services provider?


Tell me who you’re dealing with – and I’ll tell you

Experten.de cares about the transparency of the industry. Several industry chiefs say the recent tax reform means “the end” for 50% of intermediaries – but 90% could leave in the medium term.

Why “qualification even without implementation of an EU directive” is becoming increasingly important due to liability case law. Broker pools and distributors are also making increasing use of information such as that requested in Experten.de. Already, intermediaries are complaining about lost lawsuits, and a soft “exit” from the market.

Without a certificate of good conduct and a flawless criminal record, you will no longer be able to work in sales! It is not only distributors of British life insurance policies who are struggling to survive:

The intermediary stands in the fire – but if the sales department leaves him alone?

For the mediator, it’s clear:

If he allows himself to be sent to his doom when selling “junk real estate” or “dubious leverage models” or alleged “guarantee products” because the training only offers half-truths, the first person to be “hit” is himself.

With about 30,000 liability lawsuits a year ( ! ) against brokers, everyone will be wondering:

How honest and above all loyal is my sales partner (or is this just can partner, but ? ?)? Dogfish is kissing the head of distribution awake. Why did an insurer recently have to have its crisis PR handled by a hastily appointed PR agency? Just because “Der Stern” or “Der Spiegel” took aim at the insurer?

One answer might be:

“Management by Jeans: In the crucial places, sit the biggest rivets?. As a product provider and broker pool, as a sales organization and free agent, you will ask yourself about the competence and transparency on the side of your contractual partner! Intermediaries, product providers and distributors are affected do not be blinded, but question critically”.

www.experten.de provides important tools and information. Numerous independent financial services providers know what the hour has come to. Many have already been sued for selling “guarantees” from insurers as “security and financial strength” based on half-true training, along the lines of “please don’t bother me with details.” The opportunities for competent sales that have been squandered by the credit institutions in recent years have been an advantage for the independent financial services provider – but restructuring means a challenge:

Don’t let yourself be reduced to “fish food” and a bankruptcy case – don’t ruin your reputation and standing. Therefore test who binds himself eternally !


by Dr. Johannes Fiala

by courtesy of


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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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