Churning

In the financial sector, churning (“ tailoring of commissions”, “trickery”; comes from to churn “buttern”) is understood as the frequent shifting of a portfolio by an asset manager or broker . As a result, they obtain the highest possible commission , which is borne by the investor. Churning occurs predominantly in futures transactions , and increasingly also in the securities area .

The term was based on the production of butter, in which the milk is stirred and the cream is skimmed off until there is no more milk. In the same way, the asset manager reallocates the capital and skims the fees.

See also

• Account deletion
• Insider trading
• Front running
• Scalping

literature

• Nina Nestler: Churning: Crashing expenses under German law . Würzburg writings on criminal science. 1st edition. Peter Lang , Frankfurt am Main 2008, ISBN 978-3-631-57974-9 .
• Manuel Lorenz: Churning: The phenomenon of the capital market and stock exchange law gobbling up expenses and the sanctions in criminal and administrative offense law . Writings on white collar crime. CF Müller , Heidelberg 2015, ISBN 978-3-8114-6029-4 .
• Christoph Hus: Secretly ripped off . In: The time . No. 07/07/2001 ( online at zeit.de [accessed on August 14, 2016]).
• Rita Flubacher: Acting to excess. In: TagesAnzeiger .ch. Tamedia , September 4, 2014, accessed August 14, 2016 .