European Business Organization Law Review

Table of Contents - June 2012 - Volume 13, Issue 02  

Articles

The Regulation of ‘Speculative Interest-Rate Bets’ by the German Federal Court of Justice — New Dimensions of Market Intervention Hidden Behind the Old Information Model

Jacob Bonavitaa1

a1 Doctoral Candidate in Law and Economics of Money and Finance, Goethe University, Frankfurt.

Abstract

This article analyses a recent decision by the German Federal Court of Justice in the field of investor protection. At first sight it seems as if the Court held on to a model of investor empowerment by means of informational duties. However, a closer look at the reasoning of the Court reveals a tendency towards heavier intervention in the field of financial advice, oriented towards the regulation of product design. In light of this new dimension of investor protection, the article critically analyses the Federal Court of Justice's use of the disclosure-based investor protection regime.

Keywords

  • financial advice;
  • investor protection;
  • disclosure obligations;
  • Federal Court of Justice