Introduction This working paper is composed individually as a conclusion of the diploma programme part II in financial planning studied at Copenhagen Business School in the period 2009 – 2011. I have been working around this following subject: How do the “Rules of Conduct within financial institutions” affect the legal basis of liability, when the investment advice from a financial institution to a private client leads to the sales of shares in a mutual fund? Problem presentation When a customer bring a complaint to the courts of justice concerning bad or lacking advisory the appeal has to be solved in order to legal practice, which says, that a financial planer shall be judged by the profession standards. The financial law and the “Rules of Conduct within fi-‐ nancial institutions” describe how the standards shall be understood. But the regulation is criticised for only being soft law material, as the regulation only works as public law. After the implementation of the Markets in Financial Instruments Directive in 2007 the legal rights for the customer should have improved. Research question The paper is written upon the following research question: How the “Rules of Conduct within financial institutions” affects the customer’s legal rights when a financial institutions advisory leads to a loss of capital related to investment in a mutual fond? Conclusion Surprisingly it seems like the Financial Institutions Board of Appeals is starting to apply the “Rules of Conduct within financial institution” to certain cases. That means that the cus-‐ tomer’s legal rights in connection with investment in shares in mutual funds upon advice from a financial institution could have improved after the introduction of MIFID in Danish law.
|Educations||Graduate Diploma in Financial Planning, (Diploma Programme) Final Thesis|
|Number of pages||94|