Let’s talk about percentage!
Since 1st of July the German door-to-door-salesmen have to reveal their percentage - as we have reported they don’t have to tell the whole story because ’strukkibuden’ like MLP have a lot of hidden ways to get money from the insurance companies, e.g. owing shares of these companies.
One of Germany’s most distinguished writer on insurance business is Herbert Fromme from Financial Times Germany. In his new article Undurchsichtige Transparenz (intransparent transparency) he shows us how the silly business is run.
The insurance companies have to admit an abstract percentage. Most of them take 4% or 5% od the victims money - in Frommes example this results in 2880,- Euros.
For the same product companies like MLP demand between 6% or 7% - in this case between 4320,- Euros and 5040,- Euros.
The funny thing is: This transparency rules are for insurance business only. If MLP sells equity funds nobody needs to reveal his percentage. It is very predictable that MLP will focus on equity funds, isn’t it?