Association of German Banks issues guidelines on enhancing investor confidence

26 May 2009 - “Investor confidence in the banking system has been damaged by the financial crisis. Past mistakes must now be corrected,” stated Manfred Weber, Chief Executive of the Association of German Banks. The association's guidelines on enhancing investor confidence, released today, set standards for retail investment banking and aimed at helping to win back consumer trust.

A long-term partnership based on trust was essential for both clients and the banks, Weber continued. It was therefore a key objective of the guidelines to place client needs even more at the forefront of the banks' internal procedures.

The association's guidelines deal not only with providing customer advice, but also with the various preceding steps. These extend from selecting an investment product range to preparing product information. Particular attention is paid to product analysis. In future, there will be a standard procedure for ascertaining whether and, if so, to what extent new products are suitable for retail investors. In addition, product information will be thoroughly evaluated to ensure that it is easily understandable.

Weber said that the guidelines were intended to encourage the association's members to examine their internal procedures and make any necessary adjustments. “Clients will benefit from a single standard applied by all private banks in Germany.”