The government of the German state (”Bundesland”) Baden Württemberg has started an initiative to force banks to disclose all kickbacks and commissions. The minister for consumer protection Peter Hauk (a member of the conservative CDU) said that he will soon bring this new regulation to the Bundesrat (the parliamentary chamber that represents the German states). The Minister encouraged the banks to support the new law because more transparency for banking clients will in the long-run strengthen the international competitiveness of the German banking industry.
The initiative is a logical next step after the new MIFID regulation has already compelled banks to keep written minutes of all client meetings detailing the recommendations that were made to the client. MyPrivateBanking research analysts expect that in the long run the reception of kickbacks by banks and wealth managers will get completely banned.