The key point: The Federal Supreme Court rejected an appeal by a Mexican client who claimed 3.6 million dollars from a Geneva bank after risky investments made by her son.
The facts
- Power of attorney: signed in 2009 in favour of her son, free to manage the account.
- Investments: leveraged funds of up to three times the amount invested.
- Bank’s advice: a conservative portfolio, 75% in Swiss franc bonds.
The decision
- Legal nature: a simple custody contract, with no management mandate.
- Consequence: the client, represented by her son, alone decided on investments.
Key figures
- Assets in 2008: over 4 million dollars.
- Assets at end-2019: under 30,000 dollars.
In short
Without a management mandate, the bank is not liable for losses decided by the client or their representative.
