Financial advice

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The financial advice ( english finance advice ) in includes finance both investment advisory and beyond the advice in the context of the entire financial industry ( Finance and funding ).

General

In the specialist literature there are numerous terms used as a synonym for financial advice, such as investment advice or asset advice , with financial advice often also appearing as a generic term for all advisory services. While investment advice only concerns the deposit business and custody business of credit institutions , financial advice also includes credit transactions , financial management , debt advice , financial planning and the elimination of financial risks . Even insurance counseling and preventive counseling may be the subject of financial advice. Financial advice is a service offered by a financial advisor , through which he and the customer counter their financial risks with problem solutions . Financial advice is “on a case-by-case basis, investment advice, financial planning or asset management”.

In the case of financial advice, the advisor creates a comprehensive concept taking into account the different goals and aspects of the respective customer . Chances and dangers of possible developments should be used or averted with suitable financial products . A concept created in this way must be checked regularly to ensure that it is up-to-date and adapt to changing situations such as marriage, children, etc. a. be adjusted.

Legal issues

Financial advice is a financial service in accordance with Section 1 (1a) No. 1a KWG if it includes investment advice. Without investment advice, financial advice is only subject to banking supervision if the advisor conducts at least one of the banking transactions listed in Section 1 (1) KWG or if the advisor is a financial company under Section 1 (3) KWG that is involved in investing in Financial Instruments advises or advises other companies on their capital structure, industrial strategy and related issues.

Like investment advice, financial advice at banks or other financial service providers is usually a free service that is cross-subsidized through the sale of banking products . In contrast, independent financial advisors incur consulting fees ( fee-based advice ). The fee-based financial investment advisor needs a business license according to § 34h Abs. 1 GewO .

According to the Financial Market Directive II (EU Directive 2014/65 / EU, in force since January 2018), independent financial advice is linked to a commission ban, while dependent advice is linked to a disclosure obligation. Independent financial advisors are entered in a register in accordance with Section 93 of the WpHG .

Types of advice

The classic type is personal advice from a financial advisor who is qualified as a specialist in financial advice . He can advise on a commission basis or without internal commissions . These commissions can jeopardize the independence of the advice and trigger a conflict of interest if the credit institutions do not disclose the commissions received or paid to the investor (internal commissions). There is also automated financial advice by robo-advisors with the aim of digitizing and automating the services of a traditional financial advisor . The automated financial advice takes place exclusively via websites on the Internet .

Conflicts

Financial advice is subject to the classic principal-agent problem. The financial advisor (principal) not only represents clients' interests, but also his own interests. In addition, he can not optimally advise the customer (agent) on the basis of incomplete information . On the other hand, the customer cannot pass on all the necessary information to the consultant. A realistic assessment of the possibilities for implementing your own goals is just as difficult. Furthermore, long-term decisions are made during the consultation that have to withstand the dynamics of changes in the living situation or legal framework conditions.

Demarcation

Financial advice comprises more advisory services than investment advice, which is limited to the deposit business and the custody business of credit institutions. While the financial advice - except for the portion of the investment advice - is usually not subject to authorization, investment advice is a by the BaFin requiring a license banking business . In the case of investment and financial advice, the decision is made by the client ; in the case of asset management , the decision is made by the asset manager himself.

See also

literature

  • Technical terms insurance. Dr. Th. Gabler Verlag, ISBN 3-409-19948-9 .
  • Jürgen Steiner: Credible signals through certified financial advice. 2007.

Individual evidence

  1. ↑ Katrin Severidt: Consulting fees in banks . Deutscher Universitätsverlag, Wiesbaden 1997, ISBN 978-3-663-08272-9 , p. 5 ( limited preview in Google Book search).
  2. ^ Jörg Lange: Financial advice for private households. 1995, p. 34.
  3. ↑ Gerhard lip Jörn Esemann, Thomas dancers (ed.): Qualified financial advisory services in banks and savings banks . Gabler, Wiesbaden 2004, ISBN 978-3-322-90736-3 , pp. 60 ff . ( limited preview in Google Book search).
  4. ^ Mark Roemer: Direct sales of customized financial services. 1998, p. 37.
  5. ↑ Max Lüscher-Marty: Theory and Practice of Investments . 3. Edition. tape 1 . Verlag Neue Zürcher Zeitung, Zurich 2010, ISBN 978-3-7155-9450-7 , chapter 4.4., P. 1.30 ( limited preview in Google Book search).
  6. ^ Bernd Hochberger: Financial Planning . Deutscher Universitätsverlag, Wiesbaden 2003, ISBN 978-3-322-81579-8 , p. 180 ( limited preview in Google Book Search).
  7. ↑ Capital of March 14, 2016, How Robo Advisors Master the Crisis.Retrieved April 27, 2018