Overview
Anyone who seeks investment advice from a bank, financial advisor or financial intermediary can expect a recommendation that fits their own situation. Legally, a consulting contract is often concluded - even without an express agreement and regardless of whether a separate fee was paid for the consultation.
Obligations arise from this contract. The advice must be investor-friendly, i.e. take into account your investment goals, your risk tolerance, your financial circumstances and your experience. It must also be appropriate to the object: the essential properties and risks of the recommended product must be explained correctly, completely and comprehensibly - for example, the risk of loss, a long capital commitment or limited tradability. Depending on the situation, the commissions and reimbursements that the consultant receives for the recommendation must also be explained.
Not every loss is the result of incorrect advice; The investor generally bears price risks. However, if obligations have been breached, a claim for damages can be considered, which is often aimed at reversing the system. Whether the requirements are met and can be proven in the event of a dispute depends on the individual case and the available documents. Since claims can become time-barred, it makes sense to check them early.
Immediate steps
These steps make sense in most cases – regardless of whether you instruct us.
Collect all documents relating to the investment: the advisory record or suitability statement, subscription form, prospectus, information sheets, statements and correspondence. You can request missing documents from the bank or adviser.
Note when and where the advice took place, who was present, what you stated as your investment objective and what was said about risks and costs. Such notes are helpful because the content of the conversation will matter later.
Do not sign any subsequent confirmations, waivers or settlement offers without having their implications reviewed. Switching into another product should also be carefully considered.
A hasty sale can lock in losses and affect the calculation of the loss. Whether holding, selling or terminating makes sense depends on the investment and on the legal starting position.
Claims for damages are subject to limitation periods. If the advice was given some years ago or you have known about the problems for some time, it should be examined promptly which periods are running and how they can be preserved.
Unsure what to do first in your case?
Legal assessment
We examine whether the adviser asked about your investment objectives, your risk appetite, your financial circumstances and your knowledge, and took these into account in the recommendation. A recommendation that clearly does not match the investment objective may constitute a breach of duty.
We examine whether you were informed accurately and completely about the characteristics and risks of the product that were material to the investment decision, and whether the prospectus and information sheets were provided in good time. Advisers must also have examined a recommended product with due care.
If a bank receives kickbacks from front-end loads or management fees for a recommendation, it must as a rule disclose this without being asked. Partly different standards apply to independent advisers and intermediaries. We examine which duties applied in your situation.
The advisory record and suitability statement are important evidence – for both sides. We compare the documentation with your account and assess how the course of the conversation can be presented and proven in the event of a dispute.
In the event of a breach of duty, you may be entitled to be placed in the position you would have been in had you not subscribed to the investment – generally in exchange for transferring the investment and with distributions received being offset. We also examine whether claims under Sections 195 and 199 of the German Civil Code (BGB) are already time-barred or at risk of becoming so.
Who may be liable
If an employee of your bank recommended the investment, the institution comes into consideration as the contracting party to the advisory agreement. As a rule, it must accept responsibility for the conduct of its advisers.
Self-employed advisers and intermediaries may be liable personally or through their company. The scope of their duties depends on whether advice was owed or merely brokerage with duties to provide information.
If the adviser worked for a distribution organisation or as a tied agent under a liability umbrella, that company may also come into consideration.
If a prospectus contains incorrect or incomplete information, claims against those responsible for it may also come into consideration, depending on the product. Separate requirements and in some cases shorter time limits apply here.
Whether and against whom claims actually exist depends on the individual case and can only be assessed after reviewing the documents.
Preserve evidence
Do not delete anything – not even out of anger or shame. Your account of events is enough for the initial enquiry; documents can be submitted later.
Our approach
Using the form, you describe to us in a few minutes what happened. You can submit documents later.
We review your details, classify the facts and examine against whom claims may be available.
You receive an honest assessment of prospects, risks and costs – and decide for yourself whether to instruct us.
We implement the agreed strategy: towards banks, payment service providers and other parties involved, and in court if necessary.
FAQ
General guidance – it does not replace advice on your individual case.
That depends on the individual case. The prerequisites are that a breach of duty occurred, that it can be proven and that the claim is not time-barred. We cannot give any guarantee; we assess the prospects openly after reviewing your documents.
The initial assessment of your enquiry is free of charge for you. We inform you transparently in advance about the costs of a more detailed review or representation. If you have legal expenses insurance, cover may be available depending on your policy.
The standard limitation period is three years. It begins at the end of the year in which the claim arose and you became aware of the breach of duty, or would have become aware of it but for gross negligence. Regardless of your knowledge, such claims generally become time-barred at the latest ten years after they arose. The exact running of the period must be examined separately for each advisory error.
A signature does not automatically exclude claims. The record is a piece of evidence whose content is weighed in the event of a dispute; what remains decisive is how the advice actually took place. Nevertheless, a signed document can make proof more difficult – we take this into account in our assessment.
As a rule, you as the investor must set out and prove the breach of duty. However, the adviser must describe specifically how they claim to have advised you. If a disclosure error is established, the case law presumes that you would not have subscribed to the investment had you been properly informed.
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Case review
We will assess which claims may be available and which next steps may make sense.
Your details are treated in confidence. An enquiry does not yet establish a client relationship.
By telephone, by email or via the case review – in confidence and initially without obligation.