The decision by a court in Luxembourg, the EU today, is likely to protect from Swiss bank UBS to pay direct compensation to investors who lost money in a fraudulent scheme by Bernard Madoff fund established by the bank, said yesterday. HSBC may also avoid such cases. Court rejected the appeal of a small group of investors who want direct compensation from UBS, and not by the liquidators of the fund Madoff. The decision could affect many are currently facing lawsuits against UBS in its capacity as custodian of funds and LuxAlpha LuxInvest, who have lost a total of about 1,7 billion dollars of investment scheme Madoff. Lawyers have commented that after today’s decision does not expect the courts to allow investors to directly sue for compensation, auditors and trustees of the funds. However, the decision is contrary to EU directives, known as UCITS, which protect small investors by strict rules for investment funds that are open to the public, investors and lawyers intend to appeal the decision.
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