Bergenser Law Firm’s comprehensive experience on professional liability includes the liability of stockbrokers and investments funds.
The area of stockbroker companies and investment funds is an area which enjoys a thorough regulation with a detailed legal framework. Like other financial businesses it is regulated by financial inspectorate acts including The Financial Business Act and ancillary executive orders, which are regulated by EU-based legislation as well as The Investment Associations Act and The Commercial Foundation Act. Furthermore, The Alternative Investment Fund Managers etc. Act, The Executive Order on Investor Protection under Securities Trading, The Financial Advisor Act as well as The Executive Order on Good Business Practice for Financial Undertakings are all important to this legal area. Finally, insight into the rules that regulate the business activities and the regulation of the management’s affairs is essential to the claims that relate to the stockbrokers and investments funds’ insurance conditions.
Furthermore both areas require insight into the different investment products that are provided on the Danish financial market just as insight into the different trading platforms is of significant importance.
Bergenser Law Firm is highly experienced in hearings under disciplinary boards including the Stockbroker Board of Appeal (www.fondsmaeglerforeningen.dk) which primarily deals with private consumer complaints rather than commercial complaints. Complaints may encompass all legal matters between the consumer and the stockbroker including questions on the liability to pay damages.
In relation to the civil liability the matter of good business practice is an important factor to the liability of both stockbrokers and investment funds. However, the general liability evaluation is based on the general standard of liability for professionals – the reasonable professional.
As for the liability of the investment funds a significant part of the liability evaluation relates to the prospectus of the actual investment fund, therefore, knowledge of rules on prospectus liability of investment funds and in general is key to the liability evaluation.
Furthermore, Bergenser Law Firm has taken part in drafting of insurance policies and preparing of both legal opinions and legal-commercial opinions on financial institutions insurance products which cover the liability claims that stockbrokers and investment funds may be met by. Hence, we have a thorough knowledge of the different coverage clauses and coverage exemptions that these insurance products provide.