VKI collective campaign: Agreement with Bank Austria on inventory commissions charged for fund products

2024-11-18 08:00:00

Vienna (OTS) –

For brokering funds, banks often receive commissions from investment companies in the form of so-called inventory commissions. If banks do not disclose these commission payments to customers, they are inadmissible and, according to the legal opinion of the Association for Consumer Information (VKI), must be paid back to customers. After intensive negotiations with Unicredit Bank Austria AG (Bank Austria), the VKI was able to agree on a repayment to its customers. This affects consumers who received a fund product from Bank Austria by December 31, 2017. Registration for the collection campaign is open until January 10, 2025 www.vki.at/kick-back-2024 possible.

Inventory commissions for holding a fund in a bank securities account may be borne by the customer. According to established case law of the Supreme Court (OGH) on the Securities Supervision Act (WAG 1996), the receipt of existing commissions from the intermediary bank must be disclosed to customers. According to an amendment to the WAG law in 2007 (WAG 2007), existing commissions must also serve to improve the quality of the service. In addition, these existing commissions must not cause a conflict of interest between the custodian bank, contractually tied agents and the customers.

In the opinion of the VKI, the existing commissions for brokering funds were not sufficiently disclosed by Bank Austria until December 31, 2017 and can therefore be demanded back from a legal perspective. Due to a number of complaints, the VKI started a collection campaign in 2023, for which affected customers can still register. The solution, which the VKI was able to agree on after intensive negotiations with Bank Austria, stipulates that the bank will offer eligible participants in the VKI collection campaign an individual refund amount. To take advantage of the out-of-court solution, you must register for the VKI’s free collection campaign at www.vki.at/kick-back-2024 necessary. Registration is still possible until January 10, 2025.

Mag. Stefan Schreiner, head of the class actions department at VKI, is positive: “It is pleasing that we were able to reach a quick solution for affected customers with Bank Austria.” At the same time, he is also calling on other banks to “refund undisclosed existing commissions to their customers”.

SERVICE:Further information on the topic is available at www.vki.at/kick-back-2024.

OTS ORIGINAL TEXT PRESS RELEASE UNDER THE EXCLUSIVE RESPONSIBILITY OF THE SENDER FOR CONTENT – WWW.OTS.AT | NKI

1731917202
#VKI #collective #campaign #Agreement #Bank #Austria #inventory #commissions #charged #fund #products

How⁢ can consumers file a claim for repayment if they have been affected by ​undisclosed ‌inventory commissions⁤ from ​Unicredit Bank Austria?

**Interview: Understanding ‌the Recent Developments in Bank Commissions ‌and Consumer Rights**

**Interviewer:** Thank you for joining us today, [Alex Reed Name], a financial expert from the Association for Consumer Information. We have some important developments regarding commission payments and consumer rights, particularly related to Unicredit Bank Austria. Can you⁣ briefly explain what inventory commissions are and why they‌ matter to customers?

**Alex Reed:** Thank you for having me. Inventory commissions ⁢are payments that banks ⁣receive from investment companies for brokering funds. They can be seen as a form ⁣of compensation for banks that manage fund products. The ​problem ⁣arises when banks do not disclose ‌these commissions to their customers, which is not only unethical but also⁤ against the law according to the provisions⁤ outlined in the Securities Supervision Act.

**Interviewer:** It sounds like‍ transparency⁣ is‌ a crucial ⁢issue here. What has the VKI done to address the lack of disclosure regarding these commissions?

**Alex Reed:** The VKI has been very proactive. After extensive⁢ negotiations with Unicredit Bank Austria, we’ve ‍reached an agreement for the bank to repay affected customers. This repayment is for customers ‍who⁤ obtained a fund ‌product from them before December 31, 2017. We believe that this is an important step in ensuring that consumers are treated fairly and that they receive what they’re owed.

**Interviewer:** That’s significant. How can consumers affected by ‌this situation claim their repayment?

**Alex Reed:** Consumers can register for the collection campaign via the​ VKI’s official ​website until January 10, 2025. We encourage everyone who received ⁢a fund product from Bank Austria during that time to check their eligibility and take action.‌ This is a prime example ​of consumers standing up for⁢ their ⁤rights.

**Interviewer:** And‌ for those who may not understand it fully, what should customers look for when dealing with these kinds of commission structures in the future?

**Alex Reed:** Customers should always inquire about any potential commissions or ‍fees when purchasing financial⁤ products. Transparency is key, and consumers have the right to‍ know how their investments are being managed and how the banks profit from their transactions. Always ask⁣ for ⁢clear disclosures and​ don’t hesitate​ to seek clarification ‍if something isn’t clear.

**Interviewer:** Thank you, [Alex Reed Name], for shedding light on this issue. It’s crucial for consumers ‌to stay⁢ informed and ⁤vigilant about their financial rights.

**Alex Reed:** Thank you for having me. It’s my pleasure to ‍assist consumers in understanding ​their rights ​and navigating ⁢the financial landscape more confidently.

Leave a Replay