Debt Holders

The documentation requirements for financial service providers in relation to investment advice to private investors is more rights for investors and debt holders. Telephone advice get re kick right a week of private client in the case of a transaction before sending the log. This has profound implications for the financial advice industry. Also: claims for damages due to incorrect advice become time-barred in the future three years from knowledge of the damage. There are more decision-making powers for holder of notes. The proceedings of the meetings of creditors is modernized and adapted to international conditions. Documentation requirements for banks and withdraw at telephone consulting licensed financial services providers must log in the future any investment advice to private investors and give the customer before conclusion of the contract a copy of the Protocol. Material content: information and wishes of the customers, recommendations of the consultant and the determinants for this purpose.

One Control way for investors, whether the advice was rendered correctly or in the log, there are risks, which were not communicated in the consultation. In the case of a telephone consultation, the company must immediately send the Protocol. The deal even before receipt of the Protocol can be done at the express request of the customer, if the Bank expressly for the case that the log is inaccurate or incomplete, admits the customer a week right of withdrawal after receipt of the Protocol. As a general rule: In the process, the Protocol serves the investor as evidence for any advice errors. The Protocol is incomplete or inconclusive in itself, the burden of proof of proper advice meets the Bank. Dr. Matthias Gundel, Managing Director of the firm GK-law.de, specialising in capital market law describes the effect for banks: increased care of the Advisory is needed given the punitive damages risks due to the new documentation requirements.