In addition, certificates as opposed to funds or deposits at a bank is subject to not the deposit insurance fund of the Federal Association of German banks. Up to the amount of 30% of the relevant equity of Bank at the time of the last published annual accounts, balances each customer with the private banks are fully hedged by the deposit protection fund of the Federal Association of German banks.However, certificates are not protected. Main point of attack of the critics but is the non-transparent cost structure of certificates. Certificates different costs fall, at how also in case of other securities, which are borne by the investor. Investors however has certificates unable to see premiums and other costs differently than in shares.
He gets a final price, the premiums are completely invisible and sometimes horrendous for the investors. It is known of pricing. Depends on the fairness of prices alone of the fairness of the provider”(quoted after TiLP, a.a.o). Finally certificates allow sellers to get around legislation on investor protection. “These are assets which are subject to strict investor protection rules in the normal distribution, because it highly risky or even toxic” are (toxic), used as underlyings. I’ve bought certificates – what now? Claims due to incorrect advice against the selling Bank or the financial adviser etc. may be available to the owners of certificates who feels wrong advice or even cheated.
The attempt of pursuing such claims is by no means hopeless. If the claims are entitled, often already is a solution jointly with the Bank to develop with regard to extrajudicial. However, such claims are subject to narrow Statute. “Possibly aggrieved investors would be well advised not to the motto first wait” to remain. Then may be easily enforceable claims in the worst case could already be barred. It is better, in this case Matter specialist by a on banking law and capital market law to cost-effectively evaluate first lawyer. With this assessment, the owner of the certificates has exactly to assess possible risks and the unwinding of a certificates purchase. Finally a quote from your bank expert Prof. Dr Singer from November 2009: certificates, I believe largely superfluous “lawyer Karine Guilleaume de Acosta