Financial Reform Advocacy Group Demands Elimination of Brokerage Fees

The citizens' movement, Financial Turnaround, has presented a set of demands to the incoming federal government, outlining four key measures aimed at reforming the financial sector.

One of the main proposals is a shift in the pension system, with Financial Turnaround advocating for a clear line under the Riester pension and suggesting an age pension product modeled on the Swedish system instead. The movement insists on a basic ban on the sale of certificates to private investors, aiming to address concerns about the Riester pension's effectiveness as an additional pension provision.

According to the movement, almost a quarter of the money paid into Riester insurance goes into bureaucracy and commissions, a fact that underscores the need for reform. In addition, Financial Turnaround calls for stricter guidelines for financial products to ensure transparency and protect consumers.

Gerhard Schick, a board member of Financial Turnaround, founded in July 2018, emphasises the necessity of these reforms for effective advocacy of political changes. The movement currently boasts over 2,000 members, with the Hans-Boeckler Foundation and the European Climate Foundation providing financial backing.

The group also calls for a financial supervisory authority within BaFin to ensure better financial products. This new authority should utilise a new business area for consumer protection to remove harmful products from the market more swiftly.

However, it's important to note that Financial Turnaround does not seek recognition as a non-profit organisation. Instead, the movement is primarily supported by its more than 15,000 individual funding members, unlike the financial movement Finanzwende, whose organisational financiers are not publicly detailed in the provided sources.

As the federal election approaches, the demands of Financial Turnaround are gaining attention, with the movement hoping to drive meaningful change in the financial sector and pension system.