Glossary entry

German term or phrase:

Bestandspflegeprovision

English translation:

sales credit (based on assets under management)

Added to glossary by pschmitt
Oct 29, 2001 11:11
23 yrs ago
German term

Bestandspflegeprovision

German to English Bus/Financial Investment / Securities
From a text about Investment Plans:
Die Bestandspflegeprovision wird vierteljährlich ausgezahlt und wie folgt berechnet: ...
TIA
Change log

Aug 13, 2005 20:18: Steffen Walter changed "Field (specific)" from "(none)" to "Investment / Securities"

Proposed translations

+1
18 mins
Selected

sales credit [based on assets under management]

Admittedly, that's a bit of a tricky one - this is not really a "commission" (i.e. a payment based on turnover), but more an indemnity paid to a sales force, in recognition of the fact that by introducing customers to investment plans or other forms of collective investment, the salespeople will lose transaction volume. (IOW the money invested in funds is no longer available for more short-term investments generating a higher commission.) Usually a "mine field" between sales and trading... ;-)

Don't hesitate to contact me if you need more background info.
Peer comment(s):

agree JózsefÁrpád Bende
18 hrs
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4 KudoZ points awarded for this answer. Comment: "Thanks again, Ralf, for the background information, which was really helpful. Thanks to Cochrum as well. Peter"
19 mins

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