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Bavaria Banken Software GmbH

Trailer Fee

“An information site by Bavaria Banken Software GmbH”

An information site by Bavaria Banken Software GmbH

This site should bring some explanation to TRAILER FEE due to current requirements.


A fee that a mutual manager pays to a salesperson who sells the fund to investors.

The trailer fee pays the salesperson for providing the investor with ongoing investment advice and services.

It is important to know whether your mutual fund salesperson is receiving a trailer fee because it may cause him or her to try sell you a particular fund not because it is a good investment but because selling it to you will make him or her money.

Also known as a "trailer commission", this fee is paid annually for as long as the investor holds shares in the fund.

Within the current MiFID requirements the financial institutions are obligated to report the exact and correct trailer fee commission which the salesperson or the bank received to each customer, if he or she asked for it.

Current BGH-judgment

BHG-Urteil vom 19. Dezember 2000 - XI ZR 349/99 - OLG Köln

Kick Backs

Kick backs are commissions, payed by the investment company to the bank for investment recommendation of the fonds from the investment company.


MiFID (Markets in Financial Instruments Directive) is part of the financial service action plan (FSAP) adopted in may 1999 by the EU-Commission.

MiFID is an European Union law which provides a regulatory regime for investment services to the 27 member states plus Norway, Iceland and Liechtenstein. The main focus was to increase the competition and consumer protection in investment services. With the beginning of the 1 November 2007 the new MiFID regulation will replace the Investment Service Directive.