Investor Damage Kick-Backs

Expired
The payment of kick-backs (also called: hidden commissions, internal commissions, portfolio maintenance commissions, retrocessions, soft costs, gratuities) has been a common practice among many financial service providers such as banks, asset managers, fund / fund managers, insurance companies, fiduciaries, financial advisors or brokers for decades.
Back
Such kick-backs are disadvantageous for customers because they may lead to higher costs and conflicts of interest. There is a latent danger that a financial services provider will recommend to a customer not the most suitable product for the customer because of the prospect of lucrative kick-backs, but a product that generates the highest possible kick-backs for the financial services provider. In extreme cases, transactions are made just to scam kick-backs (churning). Such business practices can even be relevant under criminal law.

If there is a contractual relationship between the client and the financial services provider, such kick-backs must be surrendered to the client as principal by law in Liechtenstein, Switzerland and Austria. In the meantime, the highest courts in Liechtenstein and Switzerland have also clarified in several decisions that kick-backs must generally be surrendered to the client.

If the financial services provider wishes to retain these kick-backs as additional remuneration, it must disclose them transparently and contractually modify the obligation to surrender that exists in principle - the customer waives the surrender of kick-backs. Disclosure and waiver are subject to strict conditions. These have been tightened further with the EU MiFID and MiFID II directives. Under MiFID II, the withholding of kick-backs is now only possible under very narrow conditions due to the latent risk of conflicts of interest.

Many financial service providers have not complied with these statutory and case law requirements for transparent disclosure and waiver of kickbacks. As a result, many customers of financial service providers are still entitled to claim the surrender of the kick-backs that were wrongfully withheld.

In addition, the losses from disadvantageous investments can be claimed as damages if these occurred because a financial services provider was in a conflict of interest due to the prospect of kick-backs and did not select the most suitable investment product for the customer, but rather the one with the highest kick-backs.

However, claims in Liechtenstein (new legal situation) and Switzerland become time-barred within an absolute period of 10 years, regardless of whether you were aware of the concealed kick-backs, the claims for surrender or damages at all. Thus, with each day you let pass, your claims potentially diminish.

Amann Partners Attorneys at Law help aggrieved investors and clients of financial service providers from Liechtenstein, Switzerland and Austria to enforce their claims for surrender of kick-backs and damages. We have led one of the leading cases in Liechtenstein and therefore have years of experience in this area. We work closely with consumer protection organizations and litigation funders to ensure that injured investors and clients can enforce their claims efficiently and (if desired) without incurring costs and litigation risks.

If you have invested in financial investment products via financial service providers from Liechtenstein, Switzerland and Austria, have assets invested in these countries or have securities accounts in these countries, you are welcome to contact us. We will be happy to provide you with an initial assessment of whether kickbacks may have been unlawfully withheld in your constellation and what legal options are available.

let‘s stand together

Invalid Input
Invalid Input
Invalid Input