Liability for Unsuitable Advice on Investment Funds (Austria)

Liability for Unsuitable Advice on Investment Funds (Austria)

The recent financial market crisis has destroyed the capital of many investors to an unforeseen extent. In many cases,small investors have lost their entire savings. It therefore did not come as a surprise that, with some delay, a wave of lawsuits by disappointed investors has broken upon Austrian courts. Thus, many recent decisions of the Austrian Supreme Court deal with the law relating to unsuitable investment advice. Some of these decisions provide helpful clarification on legal issues such as the adequate form and extent of compensation and the required standard of proof.