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Sales Pressure Over Trust? A Critical Look Behind the Scenes of Financial Advisory

  • 2 days ago
  • 6 min read



For most people, they are unavoidable: insurance, retirement planning, and wealth accumulation. Yet, the market resembles a jungle. Those seeking clarity often end up with one of the large, well-known financial sales organizations. But how do these providers really operate? Is the conversation primarily about your goals—or about the advisor's next career step? We take a look at the facts, laws, and analyses from market observers like Scoredex, which shed light on the often opaque structures of the industry.


Transparency in the Jungle: What Analyses Show

In an industry heavily shaped by marketing and glossy brochures, looking behind the facade is crucial. Platforms like Scoredex have made it their mission to evaluate companies based on data and to make sales structures transparent. The focus is often on so-called "Structured Sales Organizations" (Strukturvertriebe), such as Deutsche Vermögensberatung (DVAG), Telis Finanz, Swiss Life Select, or MLP. Analyses reveal recurring patterns and systems that every consumer should be aware of before entering into a long-term financial commitment.

The "Structured Sales" System: Consulting or Recruiting? A central criticism from many industry experts and consumer protection advocates is the business model of structured sales (Multi-Level Marketing).

  • The Principle: It is a hierarchical system. An advisor usually earns not only from their own clients but also participates in the turnover generated by the advisors they have recruited (the "Downline").

  • The Conflict of Interest: This system creates a double pressure. The advisor must sell products to generate revenue and, at the same time, often recruit new employees to climb the hierarchy.

  • The Legal Lever (§ 86 HGB): This is where the status of the intermediary becomes crucial. If they are a commercial agent (Handelsvertreter)—as is common with DVAG or tied agents—they are legally obliged under § 86 of the German Commercial Code (HGB) to act in the interest of the company. If the company's sales plan dictates "growth through recruiting," recruiting new staff effectively becomes a duty to serve the company's interests. The neutral advice for the client must often take a back seat to this corporate goal.



The Illusion of Choice: Tied vs. Free Another point highlighted by market analyses is the legal status of the intermediary. There are decisive differences here that the customer is often unaware of:



1. The Tied Sales Agent (Example: DVAG) Organizations like Deutsche Vermögensberatung (DVAG) operate legally as "tied agents" (§ 34d Para. 7 GewO).

  • The Facts: The advisor is contractually bound to specific product partners (in the case of DVAG, primarily the Generali Group). This can be verified in the public intermediary register of the DIHK.

  • The Consequence: Even if there were cheaper or better-performing tariffs from other insurers on the market, this advisor cannot offer them to you due to the system. The advice ends at the borders of the corporation.



2. The Structure Broker (Example: MLP, Telis, Swiss Life Select) Other sales organizations operate legally as brokers (Makler) (§ 34d Para. 1 GewO). They are theoretically independent.

  • The Criticism: Analysts often point out a "factual restriction" here as well. To efficiently manage thousands of advisors, standardized product palettes or preferred "premium partners" are often used.

  • The Consequence: Although the advisor is theoretically allowed to use the entire market, products from large partner companies often end up on the table in practice. A true, individual "Best-Select" approach (as defined by the Federal Court of Justice's trustee ruling) occurs less frequently in standardized mass sales organizations than in specialized, independent brokerage firms.


Social Media & "Camouflage": Who is Really Behind It? A new trend, especially on platforms like Instagram, LinkedIn, or TikTok, is obscuring corporate affiliation through branding. Many advisors from large structured sales organizations deliberately do not appear under the well-known logo of the parent company. Instead, they often use:

  • Target Group Brands: A well-known example is Horbach. The brand positions itself specifically for academics and medical professionals but legally belongs to the Swiss Life Germany corporate group (verifiable via North Data or the imprint).

  • Agency Acronyms: Abbreviations (e.g., VVO) or local fantasy names ("Your Finance Team XY") are often used.

  • Lifestyle Titles: Advisors call themselves "Investment Coach" or "Financial Mentor."


The "Tipster" Trap: Data Collectors Disguised as Advisors In the age of social media, another player has entered the field: "Firms" that serve purely as lead generators. These accounts often collect customer inquiries via Instagram or TikTok ads promising insider tips.

  • The Reality: They do not advise you themselves. Instead, they act as so-called "Tipsters" and sell your data record to licensed brokers or large sales companies.

  • The Risk: For you as a consumer, there is hardly any visual difference between a legitimate brokerage firm and a data merchant. Today, you must be extremely careful about whom you speak to and, more importantly, to whom you transmit your sensitive financial data. Is it a qualified expert or just a data trader selling you to the highest bidder?


The Core of the Problem: Who Pays Whom? The greatest potential for conflict lies in remuneration. In structured sales, many hierarchy levels (from trainee to director) often have to earn a share of a single contract.

  • Cost Burden: To finance this system, products involving high acquisition costs are frequently mediated.

  • Commission Drivers: There is an economic incentive to sell products that bring the system the highest margin (often complex pension insurance with long terms) rather than lean net tariffs or simple risk policies where the sales organization earns less. The BaFin (Federal Financial Supervisory Authority) regularly warns against bad incentives caused by high commissions.




Conclusion: Asking Costs Nothing – Signing Does


The fact-checks by Scoredex, warnings from consumer protection agencies, and the legal situation confirm: A large part of the market is characterized by commission-driven structures. This does not mean that every advisor there is bad—but they work in a system that fosters conflicts of interest (due to commercial agent status and sales pressure).


Your Checklist for a Deep Dive:

  • Imprint & Corporate Network: The imprint is often insufficient, as many sales units are spun off as GmbHs (LLCs). Use portals like North Data or the commercial register. Check: Who owns the company? Are there holding structures leading to large corporations (e.g., Swiss Life, OVB)?

  • The LinkedIn Check: Look closely at the advisor's profile. Are there past positions at known structured sales firms? Do they like or comment on posts by executives of these corporations? Is an internal academy (e.g., "Campus") listed as a training site?

  • Status Check: Verify the intermediary's registration number in the public register (www.vermittlerregister.info).

  • Market Overview: Ask explicitly: "Can you also show me products from direct insurers or niche providers—or only from your partner companies?"


An informed customer is the best insurance against bad advice. Those who understand the mechanisms of the industry can make more grounded decisions for their financial future—based on mathematics, not sales pressure.





Source Directory & Legal Basis

This article is based on well-founded legal principles, supreme court rulings, and publicly available market analyses.


1. Legal Basis:

  • Duties of the Commercial Agent: § 86 HGB (Duty to act in the interest of the principal/company).

  • Definition of Intermediary Types: § 34d Trade Regulation Act (GewO).

  • Status Verification: Official Intermediary Register of the DIHK.



2. Case Law (Federal Court of Justice - BGH):

  • Trustee Ruling: BGH, Judgment of May 22, 1985 – IVa ZR 190/83 (Defines the broker as the trustee of the client, in contrast to the agent).



3. Market Analyses & Fact Checks:

  • On Deutsche Vermögensberatung (DVAG): Scoredex Fact Check DVAG and critical reporting by ZDF Magazin Royale (2021) on the DVAG system.

  • On Telis Finanz AG: Scoredex Analysis Telis.

  • On Swiss Life Germany / Horbach: Scoredex Analysis Swiss Life.

  • On MLP: Scoredex Analysis MLP.



4. Consumer Protection & Corporate Structures:

  • Criticism of Structured Sales: Consumer Center Hamburg (Verbraucherzentrale) regarding DVAG.

  • Corporate Interconnections: North Data (Commercial Register Database) – for checking shareholdings and company networks.



5. Gesetzliche Grundlagen:



6. Rechtsprechung (BGH):

  • Sachwalterurteil: BGH, Urteil vom 22.05.1985 – IVa ZR 190/83 (Definiert den Makler als Treuhänder des Kunden im Gegensatz zum Vertreter).



7. Marktanalysen & Faktenchecks:



8. Verbraucherschutz & Unternehmensstrukturen:






Legal Notice regarding this Article


Market Observation & Expression of Opinion: This article describes general market structures (structured sales organizations, tied agents, broker pools) based on the cited sources. The naming of specific companies and brands (such as DVAG, MLP, Horbach, etc.) serves as an exemplary representation of sales types according to their public market appearance.


No Defamatory Criticism: The criticism is directed against systemic conflicts of interest (e.g., due to statutory regulations of the German Commercial Code/HGB) and does not constitute a disparagement of the individual performance or integrity of specific advisors.


Liability Disclaimer: No liability is assumed for the content of linked external websites. The statements made there reflect the opinion of the respective authors and institutions.

 
 
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