Karolin Schriever: Exclusively fee-based advisory services would deprive retail investors from access to advisory services

The German Savings Banks Association (DSGV) opposes compulsory fee-based advisory services. This would deprive retail investors of access to effective advice, said Karolin Schriever, member of the DSGV’s Executive Board, during the association’s financial press conference in Frankfurt. 

The European Commission will probably present its Retail Investment Strategy in early May. This strategy is expected to include a proposal for compulsory fee-based advisory services provided by banks. “The result of compulsory fee-based advisory services would be that people who invest smaller amounts would be denied access to advisory services. This is highly antisocial. Today, accumulating savings through investments in securities is one of the few options for people to compensate for the loss of value incurred due to high inflation”, said Karolin Schriever.

In 54.6 per cent of the securities savings plans in Germany, monthly savings amount to less than 100 euros. In 28.3 percent of the savings plans, the amount saved per month is even less than 50 euros. Karolin Schriever: “On average, it takes two hours to provide initial advice. It is completely unrealistic to assume that such customers are able and willing to pay 180 euros per hour for fee-based advisory services as an ‘admission fee’, as it were. And if such investors want a second opinion, they would have to pay this amount a second time.”

“For the Savings Banks Finance Group, a major objective is to enable as many people as possible to participate in financial – and hence, in social – life”, said Schriever. Savings Banks were therefore vehemently against the introduction of exclusively fee-based advisory services.