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Reclaiming Undisclosed Portfolio Commissions: Erste Bank and Sparkassen Reach Agreement with the VKI
Banks have collected so-called trailer fees when brokering fund products - without disclosing these payments to customers. However, according to the current legal situation, such “kick-back payments” are not permitted if they are not made transparent. After lengthy negotiations, the Association for Consumer Information (VKI) has now agreed with Erste Bank Österreich and the savings banks: Those affected can receive a refund.
After intensive negotiations, the VKI was able to agree on a repayment with Erste Bank Österreich as the lead bank of the savings banks and has launched a collection campaign (the picture shows the Erste Campus in Vienna). / Picture: © Wikimedia Commons / Erstebank / CC BY-SA 4.0 (https://creativecommons.org/licenses/by-sa/4.0/deed.en)
Portfolio commissions are fees banks receive from investment companies for holding a fund in a securities account. This practice is not prohibited per se, but banks must inform their customers about it. According to the case law of the Supreme Court (OGH) and the Securities Supervision Act (WAG 1996), there is a duty of disclosure.
Since an amendment to the law in 2007, such…
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