If there were a ban on commission, many banks and intermediaries would have to change their business models and switch to an ongoing service fee.
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Frankfurt EU Financial Markets Commissioner Mairead McGuinness is pushing ahead with a project that could disrupt the entire business of mutual funds and important insurance products. At the end of March, the Irishwoman wants to present her private investor initiative, which should also include a commission ban for certain financial products.
Many banks and intermediaries would have to change their business models and switch to an ongoing service fee. According to Handelsblatt research, it is about 14 billion euros a year in Germany alone.
According to estimates by the fund discounter Rentablo, fund customers pay three billion euros a year in sales commission, the so-called front-end load. This is due upon purchase and is based on the investment capital as a fixed percentage. For equity funds, it is often five percent. In addition, the consultants receive an annual share from the ongoing product fees, the portfolio commission. According to Rentablo, this is on average just under 0.6 percent, a total of six billion euros according to Rentablo’s estimate.
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