Investment Checklist To Prepare For The Consultation. Investing money is no longer as easy as it used to be due to the diverse and complicated investment options. The financial crisis of 2008 with the example of the Lehman certificates showed that a bad investment can even result in a total loss. And it has made it clear that an investment expected by the consumer and perhaps even advertised as safe by the consultant, can in truth be a loss. A bad investment is not only annoying, it can cost you a lot of money and put your goals at risk. The checklist is an important element in the following three-step navigation to help you make the right decision.
Step 1: How can you prepare for the interview?
- Take the time to fill out the checklist before the appointment. This time is well invested. The checklist clarifies your financial situation and helps the advisor to find a product that fits your goals.
- If possible, bring an independent witness to the interview.
- Contact reliable friends, acquaintances and relatives who have the relevant expertise in the field of investment to give you valuable advice.
Step 2: What are the main characteristics of reputable consultants?
- The consultant will explain his legal status and the resulting liability to you.
- The conversation is primarily about your goals, not about products.
- The advisor takes your overall financial situation into account.
- Your willingness to take risks based on your preferences will be asked in detail.
- A product is recommended based on your goals and preferences.
- No product is offered that has a high potential for returns and is still supposed to be safe.
- You will be informed when you can dispose of your money (ahead of time).
- You are not pushed to close immediately.
- You are not put under time pressure.
- The cost of the product is explained to you.
- The advisor will give you written documents.
- You will be offered alternatives.
Step 3: How do you make the right decision?
- Do not sign immediately.
- Always get several offers and compare them.
- In principle, refrain from entering into a business transaction if you do not understand the product (you understand a product when you can explain it yourself!), Are not completely convinced of the product or do not trust the advisor.
- Get an independent opinion if you are unsure. For example, you can have a strategy checked by consulting the consumer advice center.
- Make sure that the consultant takes into account the contents of the checklist you have completed.
- In any case, keep the original checklist and keep it with the contract documents.
REMEMBER: It’s about your wealth and your financial future. Especially if you want to invest large amounts of money or conclude long-term contracts, you should take enough time. Because here financial losses would be particularly serious after a wrong decision, so you should not act hastily.
When it comes to securities, there is an obligation to take minutes for investment advice. The minutes contain the reason for the investment advice, the duration of the conversation, information about the personal situation of the customer and the financial instruments and investment services presented in the conversation, the main concerns of the customer with a weighting, the course of the conversation and the reasons for a recommendation.
What does that mean for you?
The legal regulation should make it easier to prove incorrect advice. Consumers should however exercise caution here. Banks are of course not interested in being held liable for wrong advice. It is therefore important that consumers read this advice protocol very carefully and immediately complain in writing if it is incorrect or inaccurate. Otherwise it can happen, for example, that the legally prescribed advice protocol documents a willingness to take risks that is different from that indicated by the consumer in the conversation. In an emergency in court, this could mean that the minutes are useful to the bank – and not to the consumer.
IMPORTANT! Consumers should never sign the protocol. The legislator expressly only provides for the signature of the consultant, not that of the consumer.