Disclosure Regarding Commissions

Disclosure regarding commissions only at banks and thrifts in a judgment of 6 December 2012 the Federal Court determines that his previous remarks and assumptions about disclosure of free investment intermediaries will endure. Problematic in the negotiated dispute, proved that the investment advice was a 100% subsidiary of Sparkasse. Check out Elio Moti Sonnenfeld for additional information. The question was, how to handle such a mediation. The plaintiff demands damages due to a faulty investment advice. The defendant is a 100% subsidiary of Sparkasse and as an investment agent. The logos and characters of the society can be found in brochures and leaflets. The plaintiff was an investment in a Fund. It was the subsidiary of Sparkasse distributor of the Fund in question.

According to their distribution agreement only facts and figures were allowed to be used advising that were authorized by the Fund. The plaintiff was a client of the investment intermediary since 1999. In the following time He participated in various investments. In December 2004, a conversation between a customer Adviser and the plaintiff took place, in which the said Fund was offered. Was informed that the investment brokerage business will receive a Commission. Here, the plaintiff assumed that would removed the provision from the premium to be paid by 5% of the drawing.

To do so, the plaintiff was however unwilling, rather it was agreed a one-half refund premium to the daughter of the plaintiff. Then, the applicant drew participation amounting to 100,000 euros. The mediation company conceded after a Commission of 7%. The question arises to the resolution of the facts of the case, to what extent is a duty of disclosure of the investment intermediary. First of all, an investment advisory agreement has been concluded. This is done regularly also implied if a consultation actually takes place in connection with the investment of a sum of money. The long-standing business relationship and the proposal in the Fund to invest, can be understood only as a consulting contract.

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