Dear Customer,
Do you have any questions about portfolio management or the services we offer in this regard? We would like to answer any questions you may have here. This information fulfils the requirements of Section 14(1)(2) of the Accessibility Enhancement Act (BFSG). The BFSG aims to ensure the accessibility of products and services offered by businesses. This means that all consumers should have easy access to the products and services on offer. They should not have to rely on assistance from others to do so. The aim is to enable all consumers to participate fully in society.Please note: This information is intended to explain portfolio management and our services relating to portfolio management. It is not legally binding. Only your contractual documents are legally binding. This information is divided into four sections:
Part 1 contains specific information. Here, we explain portfolio management and our services relating to portfolio management.
Parts 2, 3 and 4 contain general information. Are you dissatisfied with our services? In Part 2, we explain your options if you wish to make a complaint.
Would you like to know how our services meet the requirements of the BFSG? In Part 3, we provide information on the accessibility features of our services.
Are you experiencing problems with the accessibility of our services? In Part 4, we explain who you can contact in such cases. You will find details here of the relevant market surveillance authority.
Yours sincerely,
Joh. Berenberg, Gossler & Co. KG
1. Explanation of our services
In this section, we explain portfolio management and the services we provide in this regard. We set out the key features and how portfolio management works.
1.1 What is portfolio management?
Portfolio management involves investing your assets in financial instruments (see 1.2).
Specifically, portfolio management works as follows: we, as the bank, invest your assets in various financial instruments. We also take care of managing your investments. The collection of your investments is known as a portfolio.
You work with us to determine how we should invest your assets. We then make individual decisions on your behalf regarding the investment of your assets. We do not consult you on these decisions. This means that we act independently. However, we always adhere to the guidelines that we have previously agreed with you (see 1.3).
1.2 What are financial instruments?
The term ‘financial instruments’ appears in legislation relating to the banking sector. It features, for example, in the Securities Trading Act. Financial instruments include:
- Securities, such as shares, bonds,
- certificates and warrants
- Units in investment funds
- Derivatives
1.3 What is the process for portfolio management?
We can only carry out portfolio management if certain conditions are met (see 1.3.1). Only then are we permitted to act on your behalf independently (see 1.3.2). Whilst providing our service, we will keep you regularly informed about your portfolio and the actions we take (see 1.3.3).
1.3.1 Requirements for the provision of portfolio management services
In order to provide portfolio management services, we require certain information from you. Specifically, we will ask you for certain personal details and your preferences regarding the investment of your assets. This is required by law: without this information, we are not permitted to enter into a contract with you for portfolio management services. The information you provide helps us to understand your interests and needs.
We require the following information from you:
- Financial circumstances (What is your income? What are your expenses? What are your assets?)
- Loss tolerance (What financial losses could you cope with?)
- Investment objectives (What do you hope to achieve by investing your assets? For example: long-term wealth accumulation)
- Investment horizon (For how long do you wish to invest your money?)
- Risk Tolerance (What financial risks are you willing to take? For example: fluctuations in value, losses)
- Sustainability preferences (Should sustainability criteria be taken into account when investing your assets? For example: investments that contribute to achieving an environmental goal)
- Experience and knowledge of investing assets in financial instruments / experience and knowledge of services relating to financial instruments
Based on the information you provide, we will work with you to determine how we should manage your assets. To this end, we will establish investment guidelines together with you. To carry out portfolio management, you’ll also need a securities account and a clearing account. A securities account is a special type of bank account. We hold and manage your financial instruments in your securities account. A clearing account is also part of a securities account. We process all monetary transactions through your clearing account.
1.3.2 Implementation of Portfolio Management
Before we enter into a portfolio management agreement with you, we will inform you of the expected costs. After the agreement is signed and your securities account and clearing account have been opened, you will provide us with funds. We will then begin managing your portfolio. From that point on, we will act independently and buy and sell financial instruments. Our decisions will be guided by the investment guidelines.
1.3.3 Information on the Implementation of Portfolio Management
We regularly send you reports containing specific information about how your portfolio is managed. In most cases, the information relates to a specific time period, known as the reporting period. This period is usually 3 or 12 months. Some of the information in the report refers to a specific date. This date is usually the last business day of the reporting period. The reports may contain the following information:
- Composition and Valuation of Your Portfolio (Which financial instruments were included in your portfolio as of the reporting date? What was the value of each financial instrument as of the reporting date?)
- Performance of Your Portfolio During the Reporting Period (How did the value of your financial instruments change during the reporting period?)
- Fees and costs (How much did portfolio management cost during the reporting period?)
- Balance of your clearing account at the beginning and end of the reporting period
- Payments received, such as dividends and interest
- Individual transactions, i.e., purchases and sales of financial instruments
- Suitability statement, i.e., a statement explaining how our actions align with your investment objectives and preferences and comply with the investment guidelines
We typically provide you with information about the current composition and performance of your portfolio four times a year (every quarter). We also notify you if your portfolio’s value declines beyond certain thresholds. A threshold is reached when, during the reporting period, the initial value of your portfolio has fallen by a certain percentage. The law specifies a threshold of 10 percent. Other thresholds include 20 percent, 30 percent, 40 percent, and so on. However, you can also agree on lower thresholds with us. We may have agreed on sustainability criteria with you in the investment guidelines. In that case, you will also receive an annual report from us on this topic. The report documents how your sustainability preferences were taken into account as part of portfolio management.
1.4 What are the costs associated with portfolio management?
Portfolio management involves various costs that you should be aware of. First, you will typically have to pay management fees. These may include, for example, a specific fee for portfolio management, which we charge as a flat rate or as a percentage of your portfolio’s value. You may also have to pay transaction costs when we buy or sell financial instruments on your behalf. Before we enter into a portfolio management agreement with you, we will provide you with a cost disclosure statement. This statement is an estimate of all costs and associated expenses that are likely to be incurred in connection with portfolio management. In addition, each year you will receive a summary of all costs you actually incurred for portfolio management in the previous year. This cost summary is called an ex-post cost statement.
1.5 What are the cancellation terms? Is there a specific contract term?
You may terminate the portfolio management agreement at any time. You are not required to observe a notice period. For us as a bank, a notice period of six weeks to the end of a calendar month generally applies. There is no minimum term for portfolio management agreements.
1.6 Is there a right of withdrawal?
You may cancel the custody account agreement and the portfolio management agreement within 14 days. However, this applies only if the agreements were entered into as a distance sale—for example, via the Internet or by telephone—or as an off-premises transaction. In that case, we will provide you with certain legally required information. The cancellation period begins after you have entered into the contract and received all the required legal information. We will provide you with cancellation instructions prior to entering into the contract only if a right of cancellation applies.
2. What are your options if you have a complaint?
Are you dissatisfied with our service? In this section, we’ll explain what options you have if you have a complaint.
2.1 Customer Complaints
You can submit your complaint to us in several ways: in person, by phone, or in writing: to your advisor or directly to the branch that serves you in writing to: Joh. Berenberg, Gossler & Co. KG, Complaints Management, Neuer Jungfernstieg 20, 20354 Hamburg
2.2 Out-of-Court Dispute Resolution
Have you filed a complaint with us, but no resolution was reached? In that case, you have the option of out-of-court dispute resolution. As a bank, we participate in the dispute resolution process of the following consumer arbitration board: Ombudsman for Private Banks. There, you can contact the Ombudsman for Private Banks. The Ombudsman will handle your complaint by mediating between you, as a consumer, and us, as a company. General information about the Ombudsman for Private Banks can be found at www.bankenombudsmann.de. Information on the exact procedure for the Ombudsman process can be found in the Ombudsman for Private Banks’ Rules of Procedure. We will be happy to provide you with the Rules of Procedure upon request. However, you can also view them online on the website of the Federal Association of German Banks (Bundesverband deutscher Banken e. V.) at www.bankenverband.de. You must submit your complaint in writing to the Ombudsman for Private Banks, for example by mail, fax, or email.
Address:
Ombudsman for Private Banks
Office
P.O. Box 04 03 07
10062 Berlin
Fax: 030 1663-3169
Email: schlichtung@bdb.de
3. Accessibility Features of Our Services
Would you like to know how our services meet the requirements of the Accessibility Enhancement Act (BFSG)? In this section, we provide information about the accessibility features of our services.
Background: Among other things, the BFSG requires us to comply with the Web Content Accessibility Guidelines. These guidelines are designed to make web content as accessible as possible for everyone, particularly for people with disabilities. The guidelines are based on the following four principles of accessibility:
• Perceivability: As many people as possible should be able to perceive the information and IT functions.
For us, this means, for example, that we must ensure that alternative text is provided for images and graphics.
• Usability: As many people as possible should be able to use the IT functions. For us, this means, for example, that we must ensure our web content can be navigated using a keyboard.
• Comprehensibility: Web content should be readable and clearly understandable to as many people as possible.
For us, this means, for example, that we must present our web content in language that is as simple as possible.
• Accessibility: Web content must be as compatible as possible with so-called assistive technologies. Assistive technologies include, for example, programs that read web content aloud or enlarge it, as well as those that convert speech to text.
For us, this means, for example, that we must comply with standards for the use of assistive technologies, such as standards regarding the technical structure and markup of web content.
By implementing these principles, our services meet the requirements of the BFSG.
3.1 Accessibility of Services
These are the key features of the accessibility of our portfolio management services:
You can place orders to buy or sell financial instruments in person at one of our branches, by phone, or by email
3.2 Accessibility of This Information
These are the accessibility features of this information:
- We provide this information through various access options, specifically via the following sensory channels: in-person pickup at one of our branches, audio read-aloud, and the bank’s website.
- The content of this information is written in easy-to-understand language. The language level does not exceed B2 of the Common European Framework of Reference for Languages (CEFR). Please note: This does not apply to the actual service agreement, the General Terms and Conditions (GTC), or the Pre-Contractual Information (PCI) associated with the service agreement.
- The layout of this information has a specific design: Headings are in a style of the “Thunder” font in various sizes. The size of the headings varies; body text is in the “ES Peak” font. Care is taken to ensure sufficient color contrast between the text and the background. In this information, the text is black on a white background.
3.3 Accessibility of Documents Related to Our Services
The following are the accessibility features of documents related to our services (including this information):
- The documents are perceivable. This means that, in addition to being read on the screen—with adjustable font size—they can be read aloud, and users can adjust the volume.
- The documents are in PDF format or web-based. This format can be converted to other formats, making the documents available to you through multiple sensory channels.
4. Competent Market Surveillance Authority
Are you experiencing accessibility issues with our service? In this section, we’ll tell you who to contact in such cases. The competent authority is the State Market Surveillance Agency for the Accessibility of Products and Services (MLBF). The MLBF verifies whether economic operators comply with certain legal requirements. As a bank, we are also subject to oversight by the MLBF. If you encounter problems while using our services, you can file a complaint with the MLBF. The MLBF will then, if necessary, take legal action against us as an economic operator (legal basis: Section 6 or Section 7 of the BFSG).
In your complaint, you can allege that we are in violation of a requirement of the BFSG. Alternatively, you can allege that we are in violation of a requirement of the Regulation on the Act to Strengthen Accessibility (BFSGV). (The BFSGV was enacted pursuant to Section 3(2) of the BFSG.)
The MLBF’s contact information is:
Address:
Turmschanzenstraße 25
39114 Magdeburg
Phone: (0391) 567 4530
Email: MLBF@ms.sachsen-anhalt.de