• Careful consulting as a principle
• Responsibilities of the investment consultant in principle
• Breach of contract
• Damage
• Causation

Causation

Between breach of contract meaning the faulty investment advice of the investment consultant and the loss suffered, there has to be causation. Only this inner connection qualifies a simple damage to be a legally qualifying damage.

If the investment consultant suggests purchasing certain securities although he has reason to suspect that they will develop negatively, there will be connection between the suggestion to buy and the subsequent loss, provided the investor purchased the investment product on the advice of his investment consultant.

On the other hand there is no inner connection if the investor would have purchased the securities without the suggestion of his investment consultant, due to the fact that he already was influenced by positive reports in the media. The later suggestion to buy, issued by the investment consultant was not instrumental in  influencing the decision which already had been taken by the investor. On the other hand it has to be checked whether the investment consultant, taking all conditions into consideration, was under a duty of care to advise against this investment in particular.