Financial Reform Advocacy Group Urges Elimination of Trading Fees

Citizen Movement Calls for Major Financial Reforms in Germany

A citizen movement called "Financial Turnaround" has presented a series of demands to the next federal government, aiming to overhaul the financial sector in Germany. The movement, founded by former Green Party Bundestag member Gerhard Schick in July 2018, is supported by over 15,000 members and an independent organization.

At the heart of the movement's demands are stricter guidelines for financial products, a ban on the sale of certificates to private investors, and a complete ban on commission-based financial advice. The movement particularly concerns intermediaries and brokers, and they insist on a pension product modeled after the Swedish system as an alternative to the Riester pension.

Gerhard Schick, the chairman of the movement, believes that not being recognized as a non-profit organization allows for more effective advocacy for political reforms. In line with this, the citizen movement does not wish to be recognized as a non-profit organization.

The movement also calls for the establishment of a financial supervisory authority that ensures better financial products. According to them, this authority should ensure that harmful products disappear from the market more quickly. To further protect consumers, the movement demands the setting up of a department for consumer protection within BaFin (Federal Financial Supervisory Authority) by the Ministry of Finance.

The citizen movement "Financial Turnaround" has been receiving support from notable organizations such as the Hans Böckler Foundation and the European Climate Foundation. As of March 2020, the movement reported a membership of 2,000.

The Riester pension, a target for abolition according to the citizen movement, has been a contentious issue in the German financial sector. The movement's demands, if implemented, could lead to significant changes in the way Germans save for their retirement.

The citizen movement's calls for reform are a reflection of growing public concern about the opaque and often exploitative practices of the financial sector. As the movement continues to gain traction, it will be interesting to see how the next federal government responds to these demands.