Investment Advice (Anlageberatung)

Also: Anlageberatung, Investment Advisory

Anlageberatung — investment advice — is the regulated provision of personal recommendations to investors on the purchase, sale, or holding of specific financial instruments. In Germany it is defined in § 2 (2) No. 4 of the German Investment Firm Act (Wertpapierinstitutsgesetz, WpIG) and requires a license from BaFin. Investment advisors must record each investor's individual circumstances — investment objectives, risk tolerance, knowledge, and experience — before making any recommendation.