Investor Protection Lawyer – The topic of investor protection in Europe is becoming increasingly important in our modern times. More and more often investors have to realize that their investments do not develop as promised or are lost completely.
Not rarely investors fall even cheats to the victim and turn to an lawyer in the investor protection right. But how is it around the investor protection in Europe really ordered? And who represents their interests apart from a lawyer in the case of dispute?
Investor Protection Lawyer – Well, the legal protection of investors begins before the completion of your investment. No matter whether you want to invest in a real estate fund, a ship fund or in shares: If this investment is recommended to you by a mediator or banks, this must advise you comprehensively and clear up over all risks.
The investor must be able to understand all aspects of such an investment. The mediator must consider in its consultation in particular also the personal situation of the investor.
“Anyone who has relied on investment tips from his banker or broker and later incurs losses needs competent advice on investor protection.”
Lawyer Wolfgang Herfurtner
If you are looking for a conservative investment for retirement provision, the broker is naturally not allowed to recommend highly speculative share trading. If the broker himself benefits from his recommendation, e.g. by receiving a commission on conclusion of the recommended investment, he must also disclose this.
Only so the investor can recognize the self-interest of the mediator and consider this circumstance with his decision making.
The legislator and the iurisdiction created a multiplicity at protection mechanisms in the investor protection, in order to prevent that investors receive products obtained, which do not correspond at all to their personal needs.
Investors should also be made clearly aware of the potential risk of an investment. However, it is not only your advisor who has to fulfil these investor protection obligations.
Investors must also have the opportunity to obtain written information. For many forms of investment it is therefore even obligatory to inform potential investors in advance about risks and many other details by means of comprehensive prospectuses.
Investor Protection in Germany – Authorities Monitor Financial Service Providers
In the area of investor protection in Germany, the legislator has also ensured that not everyone can simply become active in the financial services sector. In many cases this requires a licence.
With this, the financial services provider submits to further laws which are intended to protect the consumer. In Germany, compliance with these investor protection laws is monitored by special authorities such as the BaFin (Federal Financial Supervisory Authority).
Anyone who violates the applicable laws risks losing their license. The BaFin is emphatically close to its citizens. Complaints from private individuals can be forwarded directly to the authorities. If the authority then has a well-founded suspicion that a financial service provider has not complied with the rules, BaFin will initiate appropriate investigations.
Incidentally, the same applies if financial services are offered without a licence. The delinquents are then threatened with fines in the millions for the protection of investors.
Consumer Centres Can Help
Of course, it happens regularly that providers of financial services do not play by the rules. Often it is only minor misdemeanours that put individual investors at a slight disadvantage.
There is then little incentive for investors to enforce their rights on principle. And it is precisely large companies that benefit from this – investor protection suffers.
Because even a minor offence that only gives the company a manageable financial advantage pays off at the latest when it is repeated ten thousand times with impunity. If such behaviour becomes public, it is often the consumer centres that take even the smallest offences to the highest courts in order to prevent systematic discrimination against consumers and thus also against many investors.
In Case of Doubt: Contact an Investor Protection Lawyer!
Despite the many protective mechanisms designed to create the greatest possible transparency for investors in the run-up to their investment, it still happens time and again that investors lose their savings.
It is not uncommon for it to turn out that legal requirements have been violated in the course of investor protection advice or in the further course of the investment.
The list of possible breaches of duty has long since become far too extensive for the aggrieved investors themselves to be able to make a reliable assessment.
Investor Protection Banks
If there is any suspicion that your intermediary, bank or investment company may have acted unlawfully, you should always seek legal advice.
Only a lawyer with the relevant experience in banking and capital market law can provide you with a reliable assessment in investor protection with regard to your possible claims.
But even before you have suffered financial damage, it may be worthwhile to seek legal advice on investor protection. In particular investors who have acquired shares in companies (limited partners) should not fulfil every claim of the company without verification – because these claims are often unjustified. Effective investor protection should not be left also in the later process of your investment from the eyes.
Conclusion and Indications
It can therefore be stated at first that the legal situation of investor protection in Europe is quite investor-friendly. There are many ways to ensure that investors have all the relevant information at their disposal before they make their investment and that they are informed in detail about existing risks.
Special authorities monitor the behaviour of financial service providers and intervene if necessary if there are breaches of the law in the area of investor protection.
However, all these protective mechanisms are only beneficial for the individual aggrieved investor if he can effectively enforce his claims. To this end, investors should place their case in the hands of an experienced lawyer.
The lawyers of the law firm Herfurtner examine your documents in advance and prepare an individual offer for the enforcement of your rights as an investor.