Specific duties

Contract types

Other duties are dependent on the specific contract. There are three different contract types:

  • Mere advisory contracts.
  • Specific management contracts in which the manager “only” carries out the customer’s instructions.
  • General management contracts in which the manager administers the investments without instructions from the customer.

Individual duties of due diligence

The corresponding duties are not, in the main, expressly laid out; however they result from the contract purpose and generally applicable duties of due diligence:

  • Duty of investigation/duty to provide information
  • Objective explanation
  • Investor-oriented explanation
  • Elaboration of investment strategy based on customer profile
  • Implementation of the chosen investment strategy
  • Monitoring the progress of deposits
  • Adjustment/regrouping of investments
  • Performance analysis
  • Accounting and reporting
  • Record-keeping

Duties of organisation (applies especially to banks)

  • The operating organisation and resources must be provided in such a way that employees are able to fulfil their duties.
  • Monitoring: the financial institution must monitor its advisers and managers.
  • In large companies, monitoring must be carried out by a Compliance Officer.

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