{"id":15904,"date":"2020-11-16T15:43:53","date_gmt":"2020-11-16T14:43:53","guid":{"rendered":"https:\/\/fiala.de\/asset-managers-liability-right-to-compensation-and-damages\/"},"modified":"2021-08-06T08:41:37","modified_gmt":"2021-08-06T06:41:37","slug":"asset-managers-liability-right-to-compensation-and-damages","status":"publish","type":"post","link":"https:\/\/www.fiala.de\/en\/asset-managers-liability-right-to-compensation-and-damages\/","title":{"rendered":"Asset manager’s liability : right to compensation and damages"},"content":{"rendered":"\t\t
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Asset manager liability: What you need to know\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Those who are wealthy or come to assets<\/strong> are not necessarily also experts<\/strong> in the field of money investmentor asset management<\/strong>. For this reason, in order to maintain the preservation of their own property<\/strong> and to increase the long term visibility<\/strong> of future, many investors<\/strong> use the services of a asset manager<\/strong> or a asset management company.<\/strong> Thanks to growing individual and family wealth<\/strong> and an ever stronger concentration of assets<\/strong> worldwide, asset managers are enjoying growing popularity. Asset management is a common practice to transfer the care for one’s own assets to a third party<\/strong>. A distinction is made between the care with disposition powers<\/strong> and a without<\/strong> the same powers. In most cases, one speaks of asset management if decisions about one’s own assets<\/strong>are made by the management and within the framework of investment guidelines.<\/strong> In order to avoid conflicts<\/strong> of interest, a clear distinction between investment advisors<\/strong> and asset managers should be kept in mind when choosing a manager. In practice, however, the boundaries are often blurred. It should also be mentioned at this point that one also speaks of asset management <\/strong> if persons cannot completely manage their economic affairs themselves.<\/strong> In principle, the activity of an asset manager, if not advisable<\/strong>, can be assigned to any person<\/strong> or company<\/strong>.<\/p>\n

The choice of the asset manager<\/strong> or the asset management company<\/strong> is of particular importance for a successful cooperation .<\/strong> Within the framework of a service agreement<\/strong>, the asset manager’s task in managing assets is always to represent the interest of the investor<\/strong> within the framework of the previously defined investment guidelines<\/strong>. Nevertheless, the investor should always be aware that the transferred and far-reaching powers<\/strong> can, in the worst case, mean his own ruin.
In addition to the competence of the asset manager<\/strong> in economic<\/strong> and investment strategy matters<\/strong>,trustworthiness<\/strong> and seriousness <\/strong> as well as the appropriate contractual framework<\/strong> of the cooperation should play a role. A control of the asset manager is indispensable<\/strong> and a constant review of the proper fulfillment of duties prevents unpleasant surprises in the long term.<\/p>\n

Finally, it should not go unmentioned that even a professional asset management<\/strong> is not protected against,<\/span> that general economic circumstances<\/strong> result in losses from investments. The question of whether the asset manager is liable for these losses and must pay compensation remains to be clarified individually at this point.<\/a><\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Overview of the liability of asset managers:<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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