The case “PROTECTING A PRIVATE INVESTOR IN SWITZERLAND”: Maxima Legal defended the interests of a client who lost money as a result of dishonest actions of a Swiss bank representative

A Russian private investor transferred approximately USD 5 million to a major Swiss bank to invest in securities. The client wanted to invest only in conservative instruments, but on the advice of the bank manager purchased a product with higher risk and lost the money. The Private Wealth practice team, in cooperation with colleagues from Switzerland, prepared a claim and negotiated with the bank, resulting in an almost complete satisfaction of the claim, although at first glance the bank’s position was advantageous. In the claim the lawyers referred to Swiss regulations obliging to show loyalty and care for the private client’s interests and to follow the principles of trust management of property.

The jurisprudence of the Swiss Federal Court on such issues and the positions developed in doctrinal sources was also analysed as being of key importance. Maxima Legal appealed to the fact that the client had not provided the bank with evidence that he was an experienced investor and would therefore have to rely on the bank’s advice.

“This case is very important because it proves that when losses occur, you can and should argue with the bank, which is often not done by private investors due to their lack of knowledge of their rights and requirements for financial institutions,” –  said Natalia Demina, Senior Associate, Head of Private Wealth practice at Maxima Legal.