Special type of expense riding. A financial service provider commissions a (dishonest) broker (usually based abroad) to handle a customer’s order. The agent charges grossly inflated fees and gives a portion of them to the financial service provider. – In Germany, if a financial service provider has concluded such a forwarding agreement with a broker, it must clearly disclose this to the client in advance; see § 31 WpHG. – See capital market, gray, client referral, offshore financial centers, avenging angels, snake trading, expense riding.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
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https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/