Widespread practice, especially in the insurance industry, whereby the insurance agent splits the commission paid to him by the insurance company with the end customer. This is considered a nuisance. It is seen as a nuisance in that the agent demands ever higher commissions from the insurance company, thus increasing the level of premium at the expense of all insured persons. – BaFin has decreed a prohibition to pass on provisions with reference to older legal regulations – most recently in 1934. However, this prohibition was overturned by a court ruling as being incompatible with the German Basic Law. As a result, BaFin initiated a consultation procedure on the prohibition to pass on provisions in April 2012. It is expected that a prohibition regulation in conformity with the German constitution will be published within the next few years. – Cf. Annual Report 2012 of BaFin, p. 129 (report on the legal situation).
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