Financial Investment Intermediaries

Tuesday, 18. March 2014

Old farts don’t need to learn the running – amendment of financial investment intermediaries and investment law was decided some financial investment intermediaries and investment advisers have recorded it with relief. The draft of law on the amendment of the financial investment intermediaries and investment law adopted currently by the Bundestag on 27 October 2011 will include a so-called “old hares”rule. This was not part of the original concept, but was incorporated into the Bill by the Finance Committee. In the future, financial investment intermediaries require according to the new section 34f GewO of the permit by the competent authority, i.e. the labour inspectorates of the countries.

Permission is however among other things to fail, if the facts justify the assumption that the financial investment intermediaries reliability required for the operation of commercial does not own or he does not prove successfully dropped test by one before the Chamber of Commerce and industry that he for the mediation of and advice on financial assets necessary Has expertise on the technical and legal foundations, as well as about the customer service. People must not prove according to the present decision, however a competence test, continuously employed or self-employed worked since January 1, 2006 as investment broker or investment advisor. This concerns those, for example the conclusion of contracts for the purchase of unit certificates of an investment management company or the investment stock corporation or of publicly offered shares in one and convey of securitised assets to a corporation or partnership, as well as those providing investment advice within the meaning of 2 paragraph 6 sentence 1 Nr. 8 KWG operate. By one due to 34 g GewO new to complete legal regulation of the Federal Ministry of Economics and technology new information, consulting and documentation requirements are added, including the disclosure of commissions and other benefits. This an “old hand” can evade nor, such as the requirement to register at the Register the register authority. The mentioned requirements itself, but partly also their employees not only the financial investment intermediaries and investment advisers.

The opposition sharply criticized the now present “old hares”rule. As an “old hand” could have a long time as a mediator before him, without ever a competence to be tested. On the other hand, they feared a devaluation of the qualifications of younger advisers and intermediaries. With their arguments the other groups could not penetrate but ultimately. At an early stage, purveyors of financial assets and investment advisor should strive for a preparation for the upcoming legislation and the increased requirements related. In particular, it is recommended to them, to contact, who can advise you on the legal issues and are facing a lawyer qualified in this area. Negligence in this area are quickly punished by disgruntled investors.

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