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UBS Wins Lawsuit : clear and pragmatic law and regulation means risk before the court

Bloomberg has reported that UBS AG won a ruling in a Luxembourg lawsuit filed by Banca Intermobiliare SpA seeking to force the release of 5.1 million euros ($6.5 million) from an account belonging to a fund that had invested with Bernard Madoff.
Banca Intermobiliare SpA argued UBS had a duty to pay it after sending the Italian bank a confirmation for a redemption request from the British Virgin Islands-based Groupement Financier fund made before Madoff was arrested Dec. 11.
As Bloomberg observed, While this decision was the first to deal with UBS as an account holder rather than as custodian, it may show that the regulator’s statement against UBS has “limited” influence on the courts.
It is positive as it demonstrates that Justice in Luxembourg is independant.
But it is negative as well as it confirms that what professional and politicians in Luxembourg said about the investor's protection is a charade : clear and pragmatic law and regulation means risk before the court.

08:13 Posted in Luxembourg | Permalink | Comments (0)

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