You might not get what you need: The discrepancy between financial advice and commissions in Germany

Mark Mietzner and Manuel Molterer

Economics Letters, 2018, vol. 162, issue C, 167-170

Abstract: Retail banking customers seeking financial advice naturally aim to build portfolios that will support their lifetime planning goals. However, discrepancies may arise between the quality of financial advice and advisor commissions. We use savings and loan contracts (SLCs), a financial product earmarked by law for housing purposes, to empirically show that professional advice is no guarantee of a suitable match between investments and individual savings targets, even for the most financially experienced households.

Keywords: Commission selling; Financial advice; Agency problem; Earmarked financial product; Savings and loan contracts (search for similar items in EconPapers)
JEL-codes: D8 E21 G1 G11 G2 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:162:y:2018:i:c:p:167-170

DOI: 10.1016/j.econlet.2017.11.004

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