Fortis ordered to repay client for risky investments
BNP Paribas Fortis bank has been ordered by a court to replay a client money he lost on investments that he was not informed were high risk
Inexperienced investors need to be protected, says lawyer
The West Flemish business owner sold his business in 2004 and turned to the bank for a consultation on how best to invest the money gained by the sale. Despite stressing his desire for a safe haven for the capital, the court heard, the Fortis client later discovered he had suffered heavy losses from risky investments advised by his bankers.
“A great deal of money vanished like snow under the sun,” said the client’s lawyer, Geert Lenssens. The bank refused a settlement, and the issue came before the court.
The court ruled that Fortis had behaved illegally and ordered the repayment of the full amount involved. At a later sitting in January, the court will specify the exact sums of capital, interest and expenses to be paid. “Fortis gave its client insufficient information,” the court said, while stressing that the case does not set a precedent.
The ruling, said Lenssens, is encouraging for all investors dealing with banks and financial advisers. “The law cannot be strong enough when it comes to protecting savers and investors without experience.”
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