Austrian case law deducts since 2008 from general rules that asset managers must inform their clients about kick-backs which they receive from depositary banks. Since 2016 this obligation is applied to investment advisors too. In a recent decision the Austrian Supreme Court for civil matters ruled that investors who have been paying fees to their banks for investment advice, may rightfully assume that the bank does not receive any additional fee from an issuer or reseller. However in order to be actually eligible to damages, a conflict of interest is required in addition to this – for which the burden of proof is upon the bank though. (8Ob109/16m)
Not assuming double-dipping
